Phoenix is a great place for investors -- and many of our Canadian friends are coming to visit and buy investment homes in the Valley of the Sun.
- Your gross rental income is subject to 30% withholding UNLESS you elect to treat the income as "effectively connected with a U.S. trade or business.
- This can be accomplished by applying for an IRS individual taxpayer number (ITIN)
- An ITIN is a nine-digit number issued by the U.S. Internal Revenue Service (IRS) to individuals who are required for U. S. tax purposes to have a U.S. taxpayer indentification number but who do not have and are not eligible to get a social security number (SSN)
- Below is a link to a W-7 Tax form which is required to apply for an ITIN number.
- Form W-7 should be completed and mailed per the instructions as soon as possible (If you are married and wish to claim an exemption for your spouse on your U.S. Tax return, you will need to complete a W-7 for your spouse also.)
- You should mark option "H" under the section "Reason you are submitting Form W-7".
- Exception 1(d) found on page 6 of the W-7 instructions covers Foreign Landlords. If you decide to allow us to manage your property we will immediately provide you with therequired letter so that you can apply for your ITIN immediately.
- When you receive your individual ITIN number, we will need a completed W-8ECI (see link below) in order for us to send you your rental income without the 30% withholding.
- THE ABOVE IS GENERAL INFORMATION ONLY - WE ARE NOT TAX SPECIALISTS AND STRONGLY RECOMMEND THAT YOU CHECK WITH YOUR TAX ADVISOR CONCERNING INVESTMENTS IN THE U.S.
Things you should know as a Foreign Investor.
Property Management Division
"Property Management with Integrity"
Finding Your Dream Realty, Broker: Lynda Kersey 623-262-0198
15331 W Bell Road, Suite 212-15
Surprise, AZ 85374