Tax Example: Rent

April 10, 2012

Non-resident couple's joint monthly rental income1 US$1,500 US$6,000 US$12,000
Annual Rental Income 18,000 72,000 144,000
Less Costs2 (4,890) (17,930) (53,790)
Less Depreciation3 (7,273) (24,935) (49,870)
= Taxable Income US$5,837 US$29,135 US$58,270
Income Tax Rates4
Up to US$50,000 15% 876 4,370 8,741
US$50,000 - US$75,000 25% - - 2,068
US$75,000 - US$100,000 34% - - -
US$100,000 - US$335,000 39% - - -
US$335,000 - US$10,000,000 34% - - -
US$10,000,000 - US$15,000,000 35% - - -
US$15,000,000 - US$18,333,333 38% - - -
Over US$18,333,333 35%- - - -
Annual Income Tax Due US$876 US$4,370 US$10,809
Tax Due as % of Gross Income 4.87% 6.07% 7.51%
Thanks to:
Sardoma & Associates

DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on July 10, 2007.

Notes


1 The property is jointly owned by husband and wife, through a local corporation.

2 Estimated values.

3 Estimated values.

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