If you are like me you start to realize that the market for renting your vacation property is pretty good. At least in Scottsdale, AZ it is good. You also realize that you are pulling in a lot of money and your spidey sense starts tingling that someone might want to see some tax dollars.
In the end the reality is you will likely owe $0 or close to $0 dollars of tax on your US rental. After all you have expenses as well and you are required to depreciate your property in the United States so in the end there isn't a lot of income.
But if you are like me you need information on the US taxation system on rental properties. Lucky for you I've done a lot of research and reading in this area so you can save some time. And this is valuable time saved because we aren't talking about reading the latest John Grisham book, we are talk tax information which is like watching paint dry.
This is what I found most valuable in working towards filling out my 1040NR and schedule E forms for the IRS.
- IRS Residential Rental Property publication - Publication 527. I have to say this is an excellent and thorough publication put together by the IRS to help you work through your IRS 1040NR tax forms and your schedule E. I was impressed.
- IRS Depreciation Rules - form 4562 - Depreciation and amortization instructions
- IRS 1040NR Schedule E (Rental income) instructions http://www.irs.gov/pub/irs-pdf/i1040se.pdf
- Every Landlord's Tax Deduction Guide - by Fishman J.D., Stephen. I bought this through my Kindle on Amazon and found it answered any of my final questions after reading the IRS information. Look it up at your local bookstore or online. It was worth it.