My email to IRS 9 June 2008

I was intending to file a 2008 return, however there appears to be a minimum gross amount (for a single under 65 in 2007 $8750) whereby a return is not necessary.

As my property was only brought mid year and income is shared between 2 of us, then I believe each of us will earn under that amount.

Does this mean we complete NO return, or a modified one, or just notify IRS of one for next year?

Also with regard to requesting an ITIN, my US rental agent told me I needed one to rent to Section 8 tenants. However I have looked at the exceptions on the ITIN form and this is not mentioned.

I'd be grateful for your advice.


IRS reply 10th June 2008

You do not need to file a return if your US income is under the minimum amount.

You will need to request an ITIN for your rental property regardless of renting to Section 8 tenants. Please see Pub 1916 to see which exceptions you qualify for (e.g. mortgage payments or receiving rental income).

http://www.tax.state.ny.us/

My email to NYState about annual returns 21 July 2008

As a non resident UK citizen with only rental income from NYS, what forms would I have to file?

Is there a miunimum amount earnt per year, below which I would not have to file?

Reply dated 21 July 2008

You do not need ot file a return if your New York adjusted gross income federal amount column (Form IT-203, Nonresident and Part-Year Resident Income Tax Return, line 31) is less than $7,500?

Thanks,
This is how I understand it.

$8,750 pa means no form needs to be filed to the IRS for federal income tax purposes.
If the gross amount is under $7,500 then no need to file a NY state income tax return.

But you still need to apply for an ITIN irrespective of whether it is a section 8 tenant or person who is not on benefits?
So assuming you don't have an ITIN number you must have to complete some IRS form in order to get the witheld amount paid to you?

My property manager is an individual--not part of or working for a company.

I see what you mean, no filing to IRS if under the minimum earning means no possibility to declare the witheld tax and ask for it back . . .. yes that would seem to be the implication. Hadnt considered that.

Perhaps if they have witheld tax then you have to file a return however much you've earnt ? The email for IRS London is IRS.London@irs.gov, they should be able to answer that one. I'm not in this situation at present.

If you want various IRS publications covering rentals send me a PM and I will email the PDF files to you.

I am suprised that others arent asking these questions. I did a few months ago and no-one replied, so I'm not sure how others are filing returns
Brenans recommended an accountant to me to do the Federal and State Returns , I compared him to several other recommendations and I was happy with his service and price. He charged $500-$700 for completing 2 federal and 2 state returns (me and my partners) which covered 2 rental properties.

Just in case anyone was following this I went to the IRS in London Embassy this week and they sent off my ITIN application, and certified passports free of charge. ITIN expected 9-12 weeks.

Anyone have any tax updates ? We are supposed to be filing in December!

Hi,
If anyone is interested in a good sound property investment I have purchased in the mid-west usa cashflowing monthly not rental but selling on to american families and supplying a private mortgage.
The company is selectglobalproperty

Thanks for all the interestng information on this thread. I am in the process (beginning) of buying some Buffalo property but was told I need to set up a US bank account. I was also told that HSBC were best for this as they have so many branches across the world. I needed to set up a UK bank account with them before I could apply for a US one. I am now told that their are 2. A foreign currency account which you just tack onto your UK account or a full blown US bank account where you get a cheque book and cards. Any ideas on which one I would need, they dont seem to know at HSBC.

Devonish - Id be interested to know what you get from HSBC. I was told as I had a 'business' I needed a business account which cost £40 a month and didnt include internet access.
I went with Citibank in the end, they are free and I got a cheque book and debit card and internet access. But I wouldnt recommend them either as its complicated to pay cheques in or make payments yourself on-line and their customer services are a nightmare.
I havent actually used my cheque book yet so perhaps that isnt necessary, I get the rental agents to wire payments straight into my account. I pay bills from my bank online (ie buildres) or the agents pay them for me or I use my debit card for US taxes online.