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Efficient, reliable, and professional taxation service to small businesses, investor groups, and Non-Resident Owners of US Real Estate

Frequently Asked Questions (concerning non resident homeowners)

1) What is the US tax filing year?

The US tax filing year runs from January 1st to December 31st

2) Which tax returns have to be filed?

a) Non Resident Income Tax Return – Form 1040NR is due to be filed by June 15th.

b) Tangible Personal Property Tax Return to the local Property Appraiser's Office where your property is located. (please refer to Section on TPPT, as this tax no longer applies to all homeowners.)

*c) Sales & Use Tax Returns to the Florida Department of Revenue

*d) Tourist Development Tax Returns to the Tax Collector's Office where your property is Located .

*Monthly returns c) and d) are usually handled by your management company. Should this not be the case,the homeowner is responsible for submitting monthly coupons together with the taxes due)

3) How will the IRS know that I rent my property?

If your management company provides bookings for you, they are required to file IRS Form 1042 S to report the amount of rental income collected on your behalf during the tax year. This form is also copied to you. If you receive this form and do not file a 1040NR, the IRS will be aware that you have received but not reported income.

4) I did not make any profit, why do I need to file a tax return?

US law requires you to file a Return to report your income and expenditure, even if you have no tax liability. In addition, for most non resident taxpayers, annual losses roll over to future years. When you eventually sell your property these accumulated losses may be used to offset Capital Gains tax.

5) Who has to file tax returns?

All property owners must file an Income Tax Return to report rental income received. Where a property is owned by a married couple or by several unrelated individuals, each must file a separate return. If more than one property is owned, the homeowner must report the income and expenditure for each property.The settlement statement and warranty deed will confirm the names of all owners.

6) How will the County know that I have a rental property?

In order to rent out your home, you, or your management company must apply for a license to allow guests to use the property. In addition, most properties owned by US residents have a Homestead Exemption filed. Thus the County is easily able to assess those properties owned by a non resident or out of area owner.

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