TAXES FOR US CITIZEN AIRBNB ABROAD

[Maria-and-Jean0]

My wife and I have a property in the Philippines we are considering putting on Airbnb.com.  We live in USA.  Wife has dual citizenship US/PH.

If we live in USA, the property is in the Philippines and payment is in US Dollar who do we file taxes with on the income.

Would it be different if we did not own the property?  i.e. 

[Sarah977]

I have no idea what tax laws are in the Philippines or whether they have a tax treaty with the US which would prevent double taxation (which doesn't mean you don't have to report in both countries, but that the taxes you pay in one are deducted from what you would owe in the other), but US citizens and residents must report and are taxed on worldwide income.

I would consult an accountant who specializes in international tax law.

@Maria-and-Jean0

[Efrain27]

I have a question i have dual citizenship U.S and Mexico i want to put one of my properties on airbnb in mexico. I do have a RFC number also a banck account in mexico. Do i still have to report all my income from airbnb in mexico even if i dont use that money in the U.S?

[Sarah977]

@Efrain27  Yes, you do. As Mike and Jane said, US citizens have to report worldwide income. 

But Mexico and the US have a tax treaty which prevents double taxation. So let's say you have to pay 10% tax on your rental in Mexico, but you are in a 15% tax bracket in the US- the 10% you paid is deducted from the 15%, so you'd pay 5% in the US. That's more or less how it works. 

But you may also be able to deduct expenses in the US that you can't deduct in Mexico. A good accountant will know all this.

[Mike-And-Jane0]

@Maria-and-Jean0 @Efrain27 The US tax all worldwide income of US citizens even where the citizen no longer (or never since birth) lives in the USA. Unless there is a dual tax treaty between the US and the country involved you will pay tax in both countries. Many US nationals have had to renounce their citizenships over this issue.