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Claiming back withheld tax from Timeshare rental

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  • Claiming back withheld tax from Timeshare rental

    Hello everyone,

    Thank you for accepting my registration. I'm hoping someone can help me with some advice on filling out some tax forms please?

    I am a UK citizen who owns a timeshare in Las Vegas. In 2016 I successfully rented out my timeshare. My partner fell long term ill not long after we purchased it in 2010 so we have never actually used it and it was becoming a bit of a financial burden on us so I was happy when the resort managed to rent it out on our behalf.

    I recently received a form 1042-S 2016 which states a gross income of 980, a tax rate of 30% and total withholding credit of 294. The income code was 50.

    I emailed the resort and told me that the Week was rented 7 nights at the rate of $140.00 a night. The total rental amount was $980.00 after removing the 30% commission, 30% nonresident tax and 8% travel agency fee, applied $313.60 toward 2017 maintenance fees as owner requested .

    This is where my investigations have got me so far.

    I understand I need to apply for a new ITIN number on form W-7.

    I need to fill out a form 1040NR.

    I need to fill out a form Schedule E (form 1040) and post them all off together.

    I'm just having a bit of trouble filling out forms 1040NR and schedule E.

    On form 1040NR what do I need to put in the section "Income effectively connected with US Trade/business" considering the info above and do I need to attach form 1099-R (if tax was withheld).

    On Form Schedule E do I enter 980 in section "Income" - "Rents Received" ?
    Do I need to put anything in Expenses? Obviously the idea is to claim back some or preferably all of the withheld credit of 294.

    Many thanks for your help. If I can get my head around what to do then I can apply every year and hopefully claim some extra money from the withheld credit.








  • #2
    I also have questions about this and the recent updates they have. Can you recommend a video tutorial?
    deanhineslawyer.com/family-law-attorney-columbus-ohio/ site click here https://www.landscapingservicescolumbia.com





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    • #3
      hello guys,
      to answer your questions is that it depends the state that you are renting the timeshare. The best way to file these taxes and the appropriate forms you need to offset your liabilities with net income, this way you save on taxes. Remember that depending on the software you are using, on Schedule E you can post your net income and also your liabilities. Depending of how many years you have used the asset , you might better also take the depreciation during the years.
      Last edited by ceci1073; 06-29-2020, 10:46 AM. Reason: LINK

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