Sunday, October 21, 2007

Tax Filing Requirements for U.S. Rental Properties

As we all know, Orlando, Florida is truly the "Vacation Capital of the World." As such, many foreign investors have taken a trip to the Central Florida area with the intent to soaking up some rays from the "Sunshine State" & realizing the dream of foreign property investment by purchasing a vacation villa, townhome or condo. Many though fail to realize that with the purchase of a rental property comes the responsibility of filing tax returns with the proper Federal, State & local taxing authorities. Although this task can seem daunting to the individual, with the proper professional support from a Certified Public Accountant (CPA), which is similar to a Chartered Accountant in the U.K., these issues can be navigated with relative ease. In most cases, it is actually beneficial for non-U.S. residents to file Federal income tax returns since there are many deductions that can be offset against rental income. A few of these are mortgage interest, real estate taxes, business trips to inspect and caretake the home, along with all other running costs of the property. Many times a tax loss is generated that can be carried forward and accumulated over multiple years and used to reduce capital gains taxes on the sale of the property. Feel free to e-mail us with any questions that you may have in regards to these issues at matt@4cornersbusinesscouncil.com

Matthew L. Bell, C.P.A., P.A.
P.O. Box 3466
Lake Wales, FL 33859-3466
863-676-1790

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