ITIN? What's That?
Not to be confused with your property taxes, are your annual individual income tax returns, payable to the IRS. This is for the tax paid on your rental income.
Each year we have to submit returns to the U.S. government for any owner making more than $600. In order for us to do this, and in order for you to submit your return, you will need a tax identification number. For those of you in the U.S. this may be your SSN or LLC/INC. number and you probably know what to do. Otherwise, your accountant will be a huge help here.
For overseas owners, unless you are a U.S. citizen you must obtain an ITIN (International Tax Identification Number). Your management company needs to know this number in order to submit their returns. You need to apply asap as it takes some time for the application to be processed and you can't even sell your condo without your ITIN. You may also be subject to withholding of funds if we are unable to provide the IRS with your number. Please visit this website for more information.
Help-With-Tax-Questions-International-Taxpayers
FIRPTA - More acronyms...
If you're an international owner, you will likely have an IRS witholding at the point of sale, unless you have an exemption certificate. This is basically taxes on the sale of your investment. These are withheld at closing by the title company and forwarded to the IRS. However, you can often claim these back at a later date when you submit your tax return. Again, ask your accountant about this.
For more information, check out this IRS link.
