On 8/21/22 4:59 PM, Stuart O. Bronstein wrote:
tb <nospam@example.invalid> wrote:
The following message was posted on another forum that I read:
"I am Swiss, living in USA, Permanent Address, Green Card, married
to an American man with only American Passport. I plan to rent to
somebody an apartment that I own in Switzerland, secondary
apartment. Do I have to pay taxes in USA?"
I think that the poster will first have to file a Swiss income tax
return due to the rental income in Switzerland. He/she will then
have to file a U.S. income tax return for the same rental income,
minus the taxes paid in Switzerland. But I am no tax
professional, so...
What is your professional guidance about this issue?
It's probably not quite that simple, but it's likely close. It will
depend on exactly what the US/Swiss tax treaty says. In some of the
treaties tax on income from income property is only paid in the
country where the property is locates and doesn't have to be reported
in the other country. But I don't know what the US/Swiss treaty
says.
It's been a while since I looked at treaties but it is my understanding
that the US-Swiss treaty allows Switzerland to tax the rental income
derived from property in Switzerland. I believe that Switzerland has
opted to do that. The savings clause allows the US to tax rental income derived from property in Switzerland. As such, to avoid double taxation
the US citizen or US permanent resident would have to avail themself of
the US foreign tax credit.
--
Alan
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