1040NR return - Taxation rate for a Canadian making rental income in the USA.?
I have a rental home in Nevada and I need to submit a 1040NR tax return to the US government, I find I need to determine what tax rate I need to file as there seem to be several rates to chose from. My taxable Canadian income is about US48,000 after my deductions at the current exchange rate. The income from the rental property after all expenses is about US$6500. Would this be at a 15% rate or a 25% rate? Or what?
- Anonymous5 years ago
The default is 30% of the rental income.
You must actually file and elect to have the income treated as effectively connected income.
Your choices will have ramifications when you sell.