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Do non-resident landlords pay taxes?

Houston, TX |

I have a friend who is an international student on F1 visa. He rents a house and sublets the rooms to other people. If he makes a profit out of it, does he have to pay taxes in the US? I know there is a treaty that exempts him taxes from his salary of a position in school, but is it different when it comes to renting? What will happen if someone reports him to the IRS?

Attorney Answers 4


  1. Best answer

    I would take matter very seriously. If the friend is not paying taxes as required and is found out (someone reports him to the IRS), it might be grounds for revoking the visa and deportation.

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  2. All individuals realizing or making profits on US earned income are subject to declaring and paying taxes on their US earned income.

    The exception for some J-1 scholars you allude to does not apply in this instance. You got that right.

    Make sure your friend consults with an accountant ("CPA").

    Behar Intl. Counsel 619.234.5962 Kindly be advised that the answer above is only general in nature cannot be construed as legal advice, given that not enough facts are known. It is your responsibility to retain a lawyer to analyze the facts specific to your particular situation in order to give you specific advice. Specific answers will require cognizance of all pertinent facts about your case. Any answers offered on Avvo are of a general nature only, and are not meant to create an attorney-client relationship.


  3. Not an immigration question, but "yes", he must pay taxes.

    (213) 394-4554 x0 Mr. Shusterman is a former INS Trial Attorney (1976-82) with over 35 years of immigration experience. His response to your question is general in nature, as not all the facts are known to him. You should retain an attorney experienced in immigration law to review all the facts in your case in order to receive advice specific to your case. Mr. Shusterman's statement above does not create an attorney/client relationship.


  4. This is an international tax question. In general he has to report the profit and, after deducting expenses - if any - he/she has to pay taxes. Also in general income from real estate is taxable in the jurisdiction where the property is located even if there is an applicable treaty. In addition, not all countries have signed a bilateral tax treaty with the US. Please leek for the advice of an internaitonal firm. Best.

    This reply is offered for educational purpose only. You should seek the advice of an attorney. The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than an educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the undisclosed individual asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of New York. Responses are based solely on New York Law unless stated otherwise. Pursuant to Internal Revenue Service guidance, be advised that any federal tax advice contained in this written or electronic communication is not intended or written to be used and it cannot be used by any person or entity for the purpose of (i) avoiding any tax penalties that may be imposed by the Internal Revenue Service or any other U.S. Federal taxing authority or agency or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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