Are you a property investor? If yes then you need to find the ways of getting the most out of ‘your property’. You’re looking to get the best price for the property you control or have bought so it’s natural for you to look for ways that help you to minimize costs and maximize profits.
A stable place to invest capital, the U.S real estate market attracts a number of people including property investors. However, before they can get any benefit from the buying/selling of property, property investors need to ensure a few things including having a tax number that the IRS can use to tax the property they buy/sell. Having a tax number is good for property investors in the U.S as this can save them from unnecessary problems in the future. The tax number that the property investors need to obtain is an Itin or individual tax identification number.
If you need help getting an ITIN number please call us at 407-344-1012, or email us at firstname.lastname@example.org.
Now, there are two types of property investors in the United States: local or American based investors and foreign real estate investors. For the local investors, obtaining an Itin is quite easy: the process is straightforward and they do not need to do any ‘special’ to obtain the tax number. On other hand, the process of obtaining an Itin is a bit more complicated for foreign property investors. Before, we find out how to get Itin number for real estate investor, let’s take a look at what an Itin refers to and why it’s needed.
What Is An Itin?
How to get Itin number for real estate investor? Before you find this out, you need to know what an Itin refers to. Are you are a non-resident or a resident alien living the U.S without a social security number or SSN? If yes then you need to get an Itin, a nine-digit tax processing number used by the IRS to tax people like you in the U.S. To get an Itin, you’ll need to complete form W-7. Following is a detailed look at the aforementioned tax number.
The SSN is what U.S citizens use to identify themselves and their family members to the IRS. However, there are some people in the U.S who cannot obtain or are ineligible for an SSN. In spite of being ineligible for a SSN, these people are required to pay taxes. So, how can the aforementioned non- U.S citizens fulfill their tax obligations? The only way for non- U.S citizens including real estate investors living in the United States to pay their taxes is through an Itin. What does Itin specifically refer to? Let’s take a look.
A nine-digit tax processing number, Itin is issued by the IRS to ensure that people without a SSN in the U.S can meet their tax obligations i.e. file tax returns. So, how to get Itin number for real estate investor? To obtain an Itin, non-U.S citizens including real estate investors need for apply for it by completing and submitting form W-7 to the IRS. We will take detailed look at form W-7 a little later.
A taxpayers’ identification number, Itin was created to allow people in the U.S without a SSN to pay the taxes that they are required to pay. There are some specific qualities of an Itin which makes it easily recognizable. First of all, this tax number always begins with the number 9 and its 4th digit is always 7 or 8. Moreover, as mentioned earlier, it is a nine-digit number. An Itin is something people without a lawful status in the U.S may obtain. In addition to these people, some other people without a SSN also need to obtain an Itin. These include:
- A foreign national living in another country who receives taxable income from a business or investment in the United States
- A non-American student who qualifies as a U.S resident
- A U.S citizen’s spouse or dependent
- Lawful permanent resident
- The dependent or spouse of a foreign national who living in the United States on temporary visa
Are you a foreign national living in the U.S who works as property investor? If yes then you need to remember this before you get Itin number for real estate investor: you cannot use the Itin as proof of work authorization or legal status in the U.S. Nonetheless, there are many others reasons to apply for and obtain this tax number including:
- Having a tax number to fulfill your tax obligations and avoid legal problems
- Getting an income withheld by the IRS if you qualify for it
- Claim dependents you support in the United States or other North American countries when filing taxes
- You can use the Itin to open a bank account or apply for a mortgage loan
Now you may want to know how you can get an Itin but before we look at how to get Itin number for real estate investor, let’s find out why an Itin is required.
Why Itin Is Required
Many people in the United States want to know why an Itin is necessary for non-U.S citizens. Required by the IRS to identify and record your taxes, an Itin is for all those people who are unable to obtain or are ineligible for a SSN. It is mandatory for you to obtain an Itin if you do not qualify for a SSN.
Before you get Itin number for real estate investor, you need to keep in mind that an Itin will not provide you without a legal status. Instead, the Itin is used for tax identification purposes only. Another important thing to remember is that each individual has a unique Itin. For this reason, a bank may ask you to provide an Itin for identification purposes when you visit it to open an account.
In addition to the above, non-U.S citizens cannot get a work permit, state ID or driver’s license until and unless they provide their Itin. Now that you know what an Itin refers to and why it is required, it’s time to take a look at how to get Itin number for real estate investor. As mentioned earlier, there are two types of property investors in the U.S that require Itin: non U.S citizen real estate investors living the U.S and foreign-based real estate investors. We will first take a look at how local or U.S based property investors can get an Itin.
How U.S Based Real Estate Investors Can Get Itin
Many real estate investors in the U.S want to know how they can apply for and get Itin number for real estate investor. First of all, you need to arrange certain documents to apply for and obtain an Itin.
In addition to using them to apply for an Itin, you need these documents to identify yourself as an immigrant. The first step in the process of applying for an Itin is completing the W-7 form. You cannot obtain an Itin without filing the form W-7. If you’re a real estate investor ineligible for a SSN then you must apply for an Itin using form W-7 so that you can fulfill your tax obligations. There are two ways for to get the form W-7: obtain it from one of the regional offices of the IRS or download it from the website of IRS. Following is the information you need to provide in the form W-7:
- The reason for applying for an Itin
- Your name, U.S mailing address and your foreign address
- The country you’re a citizen of
- Your date and place of birth
- Your U.S visa number (if applicable)
- Your foreign tax ID number (if you have one)
- Details of the documents being submitted for identity verification purposes
The aforementioned information is what you need to provide in the form W-7. Now, the second important thing to know is what documents you required to apply for and obtain an Itin. Following are the documents you need to submit along with form W-7:
- United States income tax return copy
- State ID
- Passport or other valid photo ID
- S driver’s license
- Birth certificate of dependents who cannot submit their passport
- A valid ID document that has your name, DOB, address, photo and expiration date on it
- Proof of being a registered voter in your country
- Photo ID documents of U.S citizenship and Immigration Services
- All documents submitted for United States visa
- Medical certificate and school records of all dependents under 18
Now that you know how a U.S based real estate investor can get Itin, it’s time to take a look at how a foreign-based property investor can obtain the same tax identification number.
How Foreign-Based Real Estate Investor Can Get Itin
How to get Itin number for real estate investor if you’re based outside of the U.S? If want to find this out then simply read on. Many non-resident U.S real estate investors want to know whether or not they need to file a U.S income tax return to report the sale of U.S real estate even if they acquire a zero withholding certificate or incur a loss. Well, the simple answer to this is yes, non-resident U.S real estate investors need to file a U.S tax return to report a transaction even if they incur a loss or acquire a withholding certificate.
Another important thing that these real estate investors want to know is whether or not they need an ITIN to sell a U.S property. While obtaining an Itin is not mandatory for foreign-based real estate investors buying/selling property in the U.S, acquiring this tax number can be beneficial for them when they look to sell a U.S real estate. So, if you’re a foreign based real estate investor and want to know how to get Itin number for real estate investor then here’s some useful info for you.
In order to obtain an Itin, you need to gather the required documentation and complete/submit form W-7 to the IRS. Also, as a foreign based real estate investor, you are required to prove your ‘genuninity’ for requesting the Itin. An example of a genuine reason for requesting an Itin is the sale of a U.S property.
Now that you know how to get Itin number for real estate investor, it’s time to take a look at when you should apply for an Itin whether you’re a U.S based investor or a foreign-based investor.
When to apply for Itin
Many people including real estate investors want to know when to apply for Itin. You should complete form W-7 as soon as you’re ready to file income tax return. If you meet one of the exceptions and aren’t required to file a return, submit form W-7 along with the documents required to apply for and get an Itin.
Submit form W-7 and the documents as soon as possible once you’ve determined that one of the exceptions cover you. So, when is the best to apply for and get Itin number for real estate investor? You can apply for an Itin at any time during the year but if you file the tax return attached to form W-7 after the due date, you will become eligible for interest and/or penalties. You should apply before the due date if you wish to avoid the penalties and/or interest. Now that you know when to apply for an Itin, it’s time to take a look at the two ways to get Itin number for real estate investor. The two ways of obtaining Itin are applying directly to the IRS and applying through an acceptance agent. Let’s take a brief look at both ways.
Applying For Itin To The IRS
The first way to get Itin number for real estate investor is applying to the IRS. You can apply for the Itin to the IRS in person or by mail. To apply for Itin to the IRS, complete and submit form W-7 along with your tax return and the required documents to:
Internal Revenue Service
Austin Service Center, ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
You can apply for Itin at most offices of the IRS when you apply in person. Additionally, you can apply at most U.S consular offices if you’re living in another country. Contact your local IRS office to find out whether or not they accept the W-7 applications. If it is provided by a legally authorized individual or the issuing authority, the IRS will accept the copy of an original document you submit for the Itin along with form W-7. However, it is important that the legally authorized individual or the issuing authority certifies that the document being submitted by you is a true copy of the original.
It is extremely important that the documents you submit for Itin are authenticated. The IRS will reject the documents if you’re unable to submit authenticated copies of the documents. If you apply for the Itin through mail, you need to complete form W-7 and mail it along with the original or authenticate copies of the documents to the aforementioned address. Let’s now take a look at how to get Itin number for real estate investor through an acceptance agent.
Applying For Itin Through An Acceptance Agent
The second and final way to get Itin number for real estate investor is through an acceptance agent. Now you may want to know how you can get Itin number for real estate investor through an acceptance agent. If that is indeed the case then you need to read on.
In order to make the process of applying for and obtaining an Itin easy, the IRS allows some organizations to act as acceptance agents. In addition to make the process of obtaining an Itin easy, this accelerates the issuance of the aforementioned identification number. You can authorize an acceptance agent as your representative if you’re a U.S taxpayer and want to obtain an Itin from the IRS.
The acceptance agents authorized by you to act on your behalf must satisfy the IRS that they have the required resources and procedures in place to ensure compliance with IRS terms. An acceptance agent becomes legally responsible for providing the information required for obtaining the Itin to the IRS once the agent is authorized by you to act on your behalf. The acceptance agent needs to acquire the information required for get Itin number for real estate investor from you. If you want to know more about this, you can contact the Office of Human Resources at the central office of the IRS.
There you have it—how to apply for and get Itin number for real estate investor. By using the aforementioned information, you can get Itin number for real estate investor to fulfill your tax obligations and get the tax benefits you’re eligible for.
If you need help getting an ITIN number please call us at 407-344-1012, or email us at email@example.com.