ACQUIRING AN ITIN NUMBER
If you are an overseas investor, you need to apply for a tax identification number from our government. This number is commonly known as an ITIN number. It is our government’s way to identify you as you report income and expenses incurred on your investment property in Rochester.
The first step in the process of acquiring an ITIN number is to complete a form W-7.
W7 APPLICATION FORM AND INSTRUCTIONS
When you submit your W7 form, you will need proof of identification (discussed in the instructions; more on this in the attachment “ITIN Help” link below) and a letter from Lighthouse Management
SAMPLE LETTER TO SUBMIT WITH W7 APPLICATION
As you can see, we will need you to supply us with your full name (first, middle, last), your date of birth and your bank name and account number in order to complete this letter for you. Once you provide us with this information, we will create the letter for you, scan it and email it back to you. We will also mail a hard copy to you.
The ITIN application might cause you to have a few questions. We have compiled a list of helpful information to help you along the way.
Once you receive your ITIN number, there’s just one more thing to do. You need to complete and send to us a W8ECI form. This is the easiest step to complete.
PLEASE NOTE: Lighthouse Management is required to withhold and send to our Internal Revenue Service 30% of GROSS RENTS COLLECTED if we do not have a W8ECI on file for you.
On the positive side, by acquiring an ITIN number, you are able to report not only the income earned on your property, but also the expenses incurred. Expenses include acquisition and closing costs as well. Our tax system also allows to deduct for depreciation of your property. Depreciation decreases your tax liability. And know that you only have to pay taxes on any net income earned.
