my parents are considering to buy a house in US as a rental income. i have read some articles online but would like to get an idea from somebody who has more knowledge on this subject. from irs.gov, it sounds like there is a 30% tax on rental income!!! that sounds like a lot or am i missing something here ?
Foreign Persons Receiving Rental Income From U.S. Real Property “Such passive rental income is subject to a flat 30 percent withholding tax (unless reduced by an applicable income tax treaty) applied to the gross income rather than the “net rent” received.”
is it better to have them the owner of the property or have it under my name and send them the rent ? i live in illinois so the tax where i live is ~2.5% of the property value.
mods: please move it to the appropriate forum, if necessary.