U.S. Real Estate Investing: Tax Tips
A short, practical tax primer for international owners of U.S. rental property, prepared with our partner America International Tax Advisers (AITAX) and presented by Thomas M. Carden J.S.M., E.A. It covers the default 30% withholding tax on gross rent for non-resident aliens — and how foreign owners can elect to be taxed on net rental income instead — plus the long list of deductible expenses and how depreciation can shrink or even eliminate a U.S. income-tax bill. View it in full below or download the PDF.
Prefer to read offline? Use the Download button above — the file is a 9-page PDF (261 KB).
Withholding, deductions and depreciation — in plain English
Prepared for u.s. expats & foreign nationals who earn (or plan to earn) U.S. rental income. For specifics on your situation, speak to a qualified U.S. tax adviser.
- U.S. taxation of rental income — as a general rule, a non-U.S. person renting out a U.S. home faces a 30% withholding tax on the gross amount of each rental payment
- The good news: how a foreign owner can have the 30% withholding obligation removed and pay tax only on net rental income via a U.S. tax return
- Deductible expenses — property management, advertising, leasing commissions, repairs and maintenance, utilities, property taxes and insurance
- More deductions — mortgage interest, legal and professional fees, licenses and permits, HOA dues, capital improvements, travel to inspect the property, and the pass-through deduction
- Depreciation — how this “phantom expense” can move you into a lower tax bracket or eliminate the income-tax bill on your rental
- About American International Tax Advisers — the firm behind the deck, and how to contact them
This material is provided for general information only and is not tax advice. America Mortgages is a mortgage lender and broker, not a tax adviser. Consult a qualified professional — we can introduce you to an independent cross-border accounting firm — about your own circumstances.
- NMLS · America Mortgages Nationwide
- 2810389
- lender programs
- 150+
- U.S. states
- 50
- U.S. credit required
- No
Related resources
U.S. tax filing for overseas owners
How America Mortgages arranges your introduction to an independent cross-border accounting firm.
America Mortgages Loan Handbook
Program-by-program guide — LTV, loan sizes, terms and indicative fees for expat and foreign-national loans.
Foreign national mortgages
U.S. property financing for non-U.S. citizens — no U.S. credit history required, up to 75% LTV.
Talk to a specialist
Financing questions to pair with your tax planning — pre-approval, no obligation.
Pair smart tax planning with the right U.S. mortgage
A U.S. mortgage specialist will match you to the right program and a pre-approval — no U.S. credit history required.