Non-Resdent: Filing 2016 Taxes for Rental Income

[seeker1234]

Hello,

Thank you for taking the time to read this.

I find myself in a unique situation regarding taxes for 2016. I will do my best to describe the circumstances below.

1. I am a non-US citizen, and do not meet the 'substantial presence test' for the tax year 2016. I returned to India in July 2015.

2. I own rental property in the US. I was expecting to return to the US in the middle of 2016, but this did not happen which is why I no longer meet the 'substantial presence test'. I earned rental income for all 12 months of 2016.

3. Since the original plan was to return to the US, I did not create and put the property into a US LLC. I also did not submit a W8-ECI to the property management firm. I intend on doing this for 2017 - any guidance on this would be helpful.

4. The property management firm issued me a 1099-R for 2016. But given my status, I need a 1042-S. They have already filed their taxes.

Any guidance on the best method for resolution would be helpful i.e. how do I file my taxes, and what would the property management firm need to do, so everything is correctly submitted.

Many thanks for your time and input.

seeker1234

[inadmissible]

US rental income will always be US source income, regardless of your status as a resident or nonresident for tax purposes

If you are truly a passive investor, it is appropriate for the operator-manager of the property to withhold 30% and report it to you on a 1042-S

If you are deemed an owner-operator (despite delegating the duty of collecting rent & handling maintenance to a 3rd party) it is ECI and you will report it on your 1040NR, with the ability to deduct interest expense, property taxes, maintenance, and depreciation

You meant 1099-MISC not 1099-R