If a foreigners buy a rental property in US and then rent it out, will the rental income be taxed?

 If so, what will be the rate and how do you file/pay the tax?

Asked on November 7, 2011 under Real Estate Law, Maryland


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If a resident alien in this country earns income, he or she is obligated to file both a state and federal tax return in the state where he or she has her permanent residence in the United States.

The rate of taxation depends upon how much income is generated by the rental property in the the tax rate in this country is a graduated increase based upon how much is earned by a given individual.

Good question.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.