UK citizen Claiming back withheld tax from US Timeshare rental

[LdiJ]

I have filled out all the forms and they are ready to post off. I just have one more question if you don't mind please as I would like to understand the process fully.

I removed the witholding tax and I now have a positive income of 229. If the amount of tax that was withheld was 294 then will they deduct 294 from 229 and I receive the difference?

If so is there anything else I can put on form Schedule E to bring the net amount further towards zero? i.e I have heard people mention depreciation which is on the form.

Thanks.

Your income is 229.00 you need to fill out the 1040NR, put the 229 on line 18 and then fill out the rest of the form to calculate your tax. Both the Schedule E and the 1040NR go together and are sent in together.

 

[janner66]

Hi,

I hope it is okay to continue this thread, but please let me know if you'd like me to start a new one and I will do so.

I now have my ITIN number and this has resulted in me receiving an actual cheque of profit for $219 from my time share rental.

Unfortunately I cannot cash the cheque as no bank, building society or money exchange will accept it! I have contacted the resort and they are looking into trying to pay it into my bank account. At the very worst they will credit my account with it.

In the past my resort took care of any tax payments. Now that I have an ITIN number and I have made a profit I believe I need to declare this before 15 April on a form 1040NR and schedule E as before? Is this correct?

I also made an election under section 871. Am I right in thinking that I do not need to do this again and do not need to worry about this unless I want to remove it?

It appears that I must wait for a form 1099 from the resort before I can send these off though. I haven't yet received the form and was expecting it before the end of the year. Do I need the form 1099? Should I chase the resort for this or is it not important?

Is there anything else I need to do please?