Land rental income in U.S. taxes

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CachiGringo
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Land rental income in U.S. taxes

Post by CachiGringo » Wed Jul 10, 2019 1:24 am

Short of going to a CPA here, here's the situation.

Chilean/U.S. citizen
Land rental income in Chile
Living in U.S.
Trying to be above board when it comes to tax season

I know that going to a CPA will help, but I also can't find definitive information on whether or not there is a ratified tax treaty between the two countries. Any tax law specialists in this arena to point to? It's a non-inconsequential amount of money so I want to do it right, but like to have some idea whats going on when talking to a professional.


How does this income get reported in the U.S. as income? is it beneficial to have a chilean LLC type company to move the money through to avoid double taxation? I'm assuming that if the income is reported up here as renter to owner payments, it will get taxed as if you were a contractor, where as if it is payment to a beneficiary from a company that can report $0 earnings, that might be better?

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admin
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Re: Land rental income in U.S. taxes

Post by admin » Wed Jul 10, 2019 9:23 am

As far as I know, exactly like a property in the u.s., and if you incorporate it will become a major expensive tax mess as the company will be subject to all the FATCA reporting. Like thousands of dollars a year just to pay tax preparers to file the paperwork.
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Re: Land rental income in U.S. taxes

Post by Putenio » Wed Jul 10, 2019 9:37 am

FWIW/FYI

Regarding taxation ...

It runs us around $1000 a year to do our USA taxes because:

1. Even though all products are purchased in Germany
2. Even though all products are sold in Chile (exclusive distributor for the country)
3. Even though all sales are reported in Chile, IVA, etc.
4. Even though a Chilean accountant is employed to take care of all the SII paperwork, taxes paid
5. Even though the USA never even touches a product, sale, etc.
6. Because we have USA passports

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CachiGringo
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Re: Land rental income in U.S. taxes

Post by CachiGringo » Wed Jul 10, 2019 10:52 am

Thanks for the quick responses! Good to hear that incorporation is a no go and that its mostly the same as in the U.S.

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