Investor · Member since 2022 · 55 posts · 14 votes
Both income tax paid overseas for the capital earning and rental income can be used as a tax break. Income tax paid to the foreign can either be deducted or applied as a tax credit when filing your taxes in the US. Form 1116 is filed to claim the foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country.
Can you share other strategies to offsetting tax paid for real estate and STRs owned overseas?
Both income tax paid overseas for the capital earning and rental income can be used as a tax break. Income tax paid to the foreign can either be deducted or applied as a tax credit when filing your taxes in the US. Form 1116 is filed to claim the foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country.
Can you share other strategies to offsetting tax paid for real estate and STRs owned overseas?
Both income tax paid overseas for the capital earning and rental income can be used as a tax break. Income tax paid to the foreign can either be deducted or applied as a tax credit when filing your taxes in the US. Form 1116 is filed to claim the foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country.
Can you share other strategies to offsetting tax paid for real estate and STRs owned overseas?
not becoming US citizen, so you don't pay US tax
If someone is not a US citizen, but generates income in the US - is that income taxable in the US?
Both income tax paid overseas for the capital earning and rental income can be used as a tax break. Income tax paid to the foreign can either be deducted or applied as a tax credit when filing your taxes in the US. Form 1116 is filed to claim the foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country.
Can you share other strategies to offsetting tax paid for real estate and STRs owned overseas?
not becoming US citizen, so you don't pay US tax
If someone is not a US citizen, but generates income in the US - is that income taxable in the US?
If they live in US then yes. There're lot of question around this in other forum and when tax liability is high enough, some is willing to get rid of their citizenship.
Both income tax paid overseas for the capital earning and rental income can be used as a tax break. Income tax paid to the foreign can either be deducted or applied as a tax credit when filing your taxes in the US. Form 1116 is filed to claim the foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country.
Can you share other strategies to offsetting tax paid for real estate and STRs owned overseas?
not becoming US citizen, so you don't pay US tax
If someone is not a US citizen, but generates income in the US - is that income taxable in the US?
If they live in US then yes. There're lot of question around this in other forum and when tax liability is high enough, some is willing to get rid of their citizenship.
Hi Carlos Ptriawan! Which other forum do you recommend for this subject?
It depends what type of income was generated. Certain income from US sources or US business activities is taxable to a foreign person even if they don’t live in the US.