Do non-resident landlords pay taxes?

Asked over 1 year ago - 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. Carl Michael Shusterman

    Pro

    Contributor Level 20

    19

    Lawyers agree

    Answered . 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... more
  2. Giacomo Jacques Behar

    Pro

    Contributor Level 20

    7

    Lawyers agree

    Answered . 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... more
  3. Samuel David Cooper

    Contributor Level 13

    2

    Lawyers agree

    Best Answer
    chosen by asker

    Answered . 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.

    If this answer was Helpful, please click the button above to let me know. Thank you.
  4. Luca Cristiano Maria Melchionna

    Contributor Level 16

    3

    Lawyers agree

    Answered . 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... more

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