All property owners residing offshore who receive income from their investment and rental properties, where IRS withholding has not been applied, must file a US income tax return. The US tax year runs January to December and returns are due, for most non-residents, by June 15th annually. If, however, you have worked in the US during the tax year your deadline may be April 15th.

Expenses are offset against rental income and any losses carried forward year on year until the eventual sale of the property when certain allowable losses may be used to minimise any capital gain on the property. Allowable expenses include; advertising, cleaning & maintenance, commissions, insurance, accounting & legal fees, management fees, mortgage interest, repairs & supplies, property and tangible personal property taxes and utilities. Flights and car hire are also deductible for owners visiting to purchase, sell or maintain their rental property.

During December, Harding & Associates Tax Services will  provide current clients with our 2012 questionnaire and instructions.

For assistance in establishing your US tax compliance including obtaining ITINs and filing your annual income tax return, please contact our office...

The Bureau of Economic Analysis (BEA) benchmark survey is BEA's most comprehensive survey of foreign direct investment in the US.  All US business enterprises in which a foreign person owns directly and/or indirectly a 10% or more interest are subject to these reporting requirements.  This includes foreign ownership of real estate, improved and unimproved, except residential real estate held exclusively for personal use and not for profit making purposes. The benchmark survey is conducted once every 5 years and due to be filed by May 31st, 2013.  Significant penalties apply for failure to file the report.

Harding & Associates Tax Services will automatically file this report on behalf of current clients.

For assistance in establishing your US tax compliance including obtaining ITINs and filing your benchmark survey please contact our office...