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Question for the Money Doctors

Question submitted on Dec 19, 2012.

Question

Hello , I browsed your website , and i didn't seem to find the answer to my case .
Here is my case in a nutshell .
I used to work in US and used to have P Visa that allowed me to work ,and I payed taxes 3 years straight . I also had an apartment that I signed a lease for . ( rented not owned )
I had to leave for 6-7 month abroad as I got another job offer , during that time my P visa expired , but I sublet the apartment I signed the lease for, knowing that I’ll be back . I sublet it through the Airbnb ( and they send income tax-form to the IRS as if im making a revenue , which I did )
Now when I briefly return to US , I got a B1, B2 ( business visa ) that basically as far as I know doesn’t let me work in US , and I haven’t , but I keep subletting the apartment , as I stay there when I briefly come to NY.
What would you recommend me regarding filing the taxes, as technically I shouldn’t be filling anything , as im not on a working visa or Green card , yet I get income from US ( even though I live away from US for more then 6 month this past year ( seen that that qualify for the exemptions ) but I guess if id be a US citizen) . Please advice what are my action in the next Tax period .
Thank you

Answer

You have to report all income earned in the US including the rental income from your apartment. Please take a look at Publication 427, Residential Rental Property at www.irs.gov. This is a helpful publication that explains how rental income and expenses are reported on your tax return. This information will be reported on Schedule E. You will report the Gross Income for the rent received and you can deduct against this income your out-of-pocket rental expenses such as the rent you pay on the apartment, repairs, maintenance, advertising, utilities, supplies, insurance, etc. Since your tax situation is further complicated by your visa situation, you should consult a competent tax advisor. Also since this property is in NY, you will also need to pay taxes for NY & NYC.


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