Rental Income & U.S./Canadian taxes

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PARADISECAT Serial expat

Member since 12 February 2013

PARADISECATSerial expat07 May 2018 10:28:51

651

Good Morning all Paradise here, hope evryone has had their morning coffee. Here is my question. I have an opportunity to purchase some land, and build some small basic apartments to rent to locals in PC, but as the law states, all U.S.citizens must pay taxes on any income be it local or international. Is anyone currently dealing with this requisite and how easy is it to handle? Are Canadians subjet to the same requirements? I was told if I was to simply put the ptoperty in a locals name, then I need not worry about the tax thingy, but somehow I don't see myself doing that at all. I'm basically looking for info on the rental process right up to the taxes. Your feedbak is much appreciated

planner Dominican Republic Expert

Member since 27 December 2010

Dominican Republic Expert

plannerDominican Republic Expert07 May 2018 10:38:34

17122

Good morning. Putting the property in someone else's name is not a good idea. That is asking for trouble.

I believe US and Canada both report world wide income. You should incorporate here and hold the properties inside. Then you are reporting dividends and or profits. That may be a benefit to you.

Others will weigh in on this. I don't pay US tax so I am not the best source of info on this.

DominicanadaMike ViP

Member since 21 July 2015

DominicanadaMikeViP07 May 2018 13:45:53

1049

If you are Canadian, you only need to report property that is valued at more than 100K dollars and then only if it's NOT a personal residence. So if you own a home in another country and live in the home as your personal residence then you do not have to claim this as foreign property. Always best to check with the IRS or CRA for any latest updates. Also do the research on the item because the conditions of the property ownership are not usually readily available...

PARADISECAT Serial expat

Member since 12 February 2013

PARADISECATSerial expat07 May 2018 19:06:43

651

Thanks guys, great aadvice always.

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