Non resident tax for rental in Las Vegas

Hi,

I am a UK citizen and we own a timeshare in Las Vegas.

For the last two years I have rented the timeshare out through my resort who take 38% commission and also say: "In order to place your unit up for rent you have to be a US citizen with a US Social Security number for tax purposes. If you don’t have a US social security number a charge of 30% nonresident tax will ensue. You may apply with the Internal Revenue Service of the United States to receive a portion of this rental returned. Their website is www.irs.gov. If you do not want to obtainan ITIN number you may submit the Rental Agreement, but an additional 30% will be taken per the IRS."

I have had a look on the IRS webpage but cannot find out how to claim back this tax.

Has anyone had similar experiences who could help me find the right form and instructions on what to do please?

P.S I have been meaning to use Redweek and I understand it would cost $180 to rent successfully through your full package. Would this be subject to tax or is this taken into account?

Many Thanks.

stevef254 wrote:

I am a UK citizen and we own a timeshare in Las Vegas.

For the last two years I have rented the timeshare out through my resort who take 38% commission and also say: "In order to place your unit up for rent you have to be a US citizen with a US Social Security number for tax purposes. If you don’t have a US social security number a charge of 30% nonresident tax will ensue. You may apply with the Internal Revenue Service of the United States to receive a portion of this rental returned. Their website is www.irs.gov. If you do not want to obtain an ITIN number you may submit the Rental Agreement, but an additional 30% will be taken per the IRS."

I have had a look on the IRS webpage but cannot find out how to claim back this tax.

Has anyone had similar experiences who could help me find the right form and instructions on what to do please?

Ownership of timeshare is, in effect, ownership of real estate and non-U.S. residents owning real estate in the U.S. are indeed subject to certain federal tax requirements, whether the property is in Las Vegas, Miami or anywhere else in the U.S.A.

If you search in the discussion forums on Timeshare Users Group (http://www.tug2.net), I saw a thread there within just the past week or so addressing this very issue and very specifically identifying the exact IRS form and process involved.

My limited understanding and recollection is that a non-U.S. resident is subject to tax withholding (I certainly don't recall it being as high as 30%, but I could be mistaken). Apparently, as a non-resident you can either file in advance for an exemption from tax withholding, or file for a rebate if the transaction has already been completed. Finding and reading that TUG discussion will certainly tell you all that you need to know.

Brilliant. Thanks ever so much for your reply. I will have a look for the post you mentioned. :)