Taxation points for foreigners investing in U.S. real estate (2)

Taxation points for foreigners investing in U.S. real estate (2) Foreign real estate income Foreigners can freely purchase and rent real estate in the United States, but the rent is charged...

Foreigner real estate income Foreigners can freely purchase rental real estate in the United States, but the rental income and the capital appreciation income obtained when selling in the future are personal income and need to pay income tax. The situation is the same as that of ordinary American taxpayers, except that they must use Form 1040NR. Foreigners report income tax at the same rate as Americans. However, foreigners cannot enjoy the following two tax deductions: Personal Exemption - American taxpayers have a personal exemption of 3,700 yuan per person, and married people filing jointly can get a personal exemption of 7,400 yuan. Those with "dependents" in the family can get more personal exemptions, and the exemption reduces the income and income tax to be taxed. Foreigners can only enjoy one personal exemption when filing a 1040NR tax return, unless the foreigner is a citizen of Canada or Mexico, or a citizen of South Korea. Standard Deduction - U.S. taxpayers can use a standard deduction of at least $5,800, and those married filing jointly have a standard deduction of $11,600. However, foreigners cannot use any standard deductions and can only choose to use itemized deductions. If the foreigner does not live in the United States at all and does not have any itemized tax deductions, it means that there is no tax deduction benefit. Therefore, although foreigners have the same income tax rate as Americans, their actual taxes are slightly higher than those of U.S. taxpayers.