Nonresident Tax Issues
The most frequently asked tax questions related to Nonresident Tax Issues
For Tax Payers
Need professional help with a specific tax issue or have general tax questions? Ask a CPA is the easiest way to get advice from a licensed accountant in our network.
Ask a Tax QuestionFor Accountants
Provide answers to tax questions and introduce your practice to new potential clients. Build your CPAdirectory profile and earn reputation points.
Answer Tax QuestionsRental income tax for foreign property buyer
Asked Saturday, September 14, 2024 by Laura S.Hi Laura-
This is not a simple question but I will give you the basics. However, I recommend that you get further advice beyond here. In general, if you have a rental property in the US, you will need to file as a non-resident. Florida does not have a state income tax but you would need to research whether they have any Franchise Taxes or Lodging Taxes that your property would be subject to. Hope this is helpful. Jackie
First LLC: No Income, No Expense Filing
Asked Thursday, March 21, 2024 by Marcus C.Hi Marcus,
Choosing the appropriate legal entity depends on many factors including the type of business, types of services, future operational expectations, etc. Most people that are starting a business will either choose to be a Sole Proprietor or and LLC; however, in some circumstances, starting as an S-Corp or C-Corp make the most sense. If your business has some risk that you would like to separate from your personal finances, you may want to start out as an LLC.
To answer the question based on your current situation, since your business has zero income and expenses, there will be no tax impact since there will be nothing being passed on to you to be taxed.
Income Reporting from U.S. Possessions
U.S. Government employees
Asked Tuesday, April 23, 2013 by an anonymous userThese wages are also subject to U.S. tax but the cost-of living allowances are excludable. A foreign tax credit is available in order to ovoid double taxation.
Income Reporting from U.S. Possessions
Self Employement Tax
Asked Tuesday, April 23, 2013 by an anonymous userIncome Reporting from U.S. Possessions
U.S. citizen or Resident Alien - Not a bona fide resident of Puerto Rico
Asked Tuesday, April 23, 2013 by an anonymous userA Puerto Rican tax return reporting only income from Puerto Rican sources. Wages for services performed in Puerto Rico, whether for the U.S. Government, a private employer or otherwise, is from Puerto Rican sources.
A U.S. tax return reporting income from worldwide sources. Generally, you can claim a foreign tax credit for income taxes paid to Puerto Rico on the Puerto Rican income that is not exempt from U.S. taxes.
Income Reporting from U.S. Possessions
U.S. citizen or Resident Alien - A bona fide resident of Puerto Rico
Asked Tuesday, April 23, 2013 by an anonymous userA U.S. tax return reporting income from worldwide sources, but Excluding Puerto Rican source income. If you are excluding Puerto Rican income on your U.S. tax return, you will not be allowed any deductions or credits that are directly or indirectly allocable to exempt income.
If all your income is from Puerto Rican sources, you are not required to file a U.S. tax return.
Income Reporting from U.S. Possessions
Nonresident Alien - A bona fide resident of Puerto Rico
Asked Tuesday, April 23, 2013 by an anonymous userA U.S. tax return (Form 1040) reporting income from worldwide sources, but Excluding Puerto Rican source income other than amounts for services performed as an employee of the U.S. or any of its agencies.
For tax purposes other than reporting income, you will be treated as a nonresident alien individual with its associated limitations.
Income Reporting from U.S. Possessions
Where to file
Asked Tuesday, April 23, 2013 by an anonymous userDepartment of the Treasury Internal Revenue Service Center Austin, TX 73301-0215
Mail your Puerto Rican tax return and all attachments to If you request a refund
Departamento de Hacienda P.O. Box 50072 San Juan, PR 00902-6272
Mail all other Puerto Rican tax returns and attachments to Departamento de Hacienda P.O. Box 9022501 San Juan, PR 00902-2501
Income Reporting from U.S. Possessions