I am a UK national and own 2 houses in California. One of these I rent out. I've been recently told that I need to file a US tax return. If I don't, I will owe 30% in taxes. How do I get an ITIN without a US social security number? Also, what is the process and what can I claim for with regards the actual tax return for the vacation rental, it is the only form of revenue I have form the US.

ANSWER

The BIDaWIZ Team's Answer:

To obtain a ITIN - you need to complete Form W-7 as shown here and likely check box B http://www.irs.gov/pub/irs-pdf/fw7.pdf You don't need a social security number, but will need to file a tax return with the form. As a foreign owner of US rental property, you can elect a "net-basis election," permitted by Sections 871(d) and 882(d) of the Internal Revenue Code. This allows you to report the rental income net of all property-related expenses (interest, taxes, maintenance, depreciation, etc.). You would need to file your tax returns in a timely manner to claim this election, but it will offset your rental income. Also, personal property not used in the production of income and expenses wouldn't be eligible for this election. To report the rental income, you would file form 1040NR - http://www.irs.gov/pub/irs-pdf/f1040nr.pdf