So, you’re a Canadian, or other non-US citizens, who own and rents out US property, hasn’t yet obtained an ITIN and you don’t expect to make your June 15, 2018, 1040NR filing due date. No worry, go ahead and file an extension request on Form 4868 by writing “ITIN to be requested” on SSN line of the form.
Note – if US tax is due and paid after June 15, then the late payment penalty (usually ½ of 1% of any tax) and related interest does arise. But your extension is assisting you regarding the late filing penalty (usually 5% of the amount due for each month or part of a month your return is late; the maximum penalty is 25%) that is usually charged if your return is filed after the due date – as such due date includes extensions. Read More
Am I Better To Put Rental Real Estate In A Sub-S Corporation, An LLC Or A Partnership?
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Tax Advisor’s – What Are Your Thoughts On This Question Of The Week?
My client has an 1120-F entity and wishes to convert it to a C-Corp or S-Corp. Is there a way to do this without any tax implications? He is a US citizen and the corp has two buildings that generate rental income.
If you are among the many taxpayers renting your first or second home using rental agents or online rental services that match property owners with prospective renters, such as Airbnb, VRBO and HomeAway, then you should know the IRS has special rules related to short-term rentals.
When property is rented for short periods, special (and sometimes complex) taxation rules come into play, which can make the rents excludable from taxation; other situations may force the rental income and expenses to be reported on Schedule C (as opposed to Schedule E). Read More