[tigerlily]

This is a tax question, sorry. I just read a nice thread about how UK folks are taxed at 22% for non-resident landlord tax. What is the tax situation in America for renting? We live in Washington State, so there is no state income tax, just the Fed. Question is, if our rental only produces 12K a year and we are a family of four- will we have any tax liability? I'm sure that we have to file a return, but if we are earning less than 15K a year I'd be shocked if uncle sam took any of that away. I seem to remember that you can earn up to US$80 K a year overseas before the US govt taxes your income. Is this correct?

[DrPhred]

The standard withholding tax rate of 30% is applicable to rental income.

If a US return is filed claiming property expenses and mortgage interest and a depreciation allowance then the income will be taxed at progressive US rates from 15% -35%.
from:http://www.property-tax-portal.co.uk/international_property_tax_essentials.shtml#6