asked

As a non-resident alien engaged in a business in the United States and owning a residential property in Texas that I rent out, I need to file a 1040NR. My question is about the amount of gross rental income I have to declare in 1040NR. I understand I can deduct maintenance costs, mortgage interest, insurance costs, and depreciation, but in my resident country, I will still have to declare my worldwide income, and they will only recognize a flat 5% of gross rental income as a deduction. Therefore, I am considering splitting my rental income into 'Rent' and 'Reimbursable expenses' to lower my gross rental income in 1040NR. Will I be able to report only the 'Rent' portion as gross rental income in 1040NR and not the 'Reimbursable expenses'?

July 29th, 2024

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