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Renting an Apartment to Somebody in Switzerland

The following message was posted on another forum that I read:

"I am Swiss, living in USA, Permanent Address, Green Card, married to an American man with only American Passport. I plan to rent to somebody an apartment that I own in Switzerland, secondary apartment. Do I have to pay taxes in USA?"

I think that the poster will first have to file a Swiss income tax return due to the rental income in Switzerland. He/she will then have to file a U.S. income tax return for the same rental income, minus the taxes paid in Switzerland. But I am no tax professional, so...

What is your professional guidance about this issue?

Thanks.

Reply to
tb
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It's probably not quite that simple, but it's likely close. It will depend on exactly what the US/Swiss tax treaty says. In some of the treaties tax on income from income property is only paid in the country where the property is locates and doesn't have to be reported in the other country. But I don't know what the US/Swiss treaty says.

Reply to
Stuart O. Bronstein

It's been a while since I looked at treaties but it is my understanding that the US-Swiss treaty allows Switzerland to tax the rental income derived from property in Switzerland. I believe that Switzerland has opted to do that. The savings clause allows the US to tax rental income derived from property in Switzerland. As such, to avoid double taxation the US citizen or US permanent resident would have to avail themself of the US foreign tax credit.

Reply to
Tempuser

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