Why do I need an ITIN?

There are several reasons that you need an ITIN.

1. When you receive rent, without an ITIN you will be subject to 30% withholding tax on the rent you receive. This will be deducted by your property manager and sent to the IRS as advance payment of income tax unless you supply them with a Form W-8ECI that includes an ITIN.
2. When completing your IRS tax returns you will need an ITIN to identify yourself to the IRS and claim any allowances or reclaim any withholding tax that may have been paid.
3. You may need to provide an ITIN to be able to sell a property.
4. You cannot submit a 1040NR without an ITIN.

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This is from the IRS website:

Does the following apply to you?

• You do not have an SSN and are not eligible to obtain one, and
• You have a requirement to furnish a federal tax identification number or file a federal tax return, and
• You are in one of the following categories:
  • Nonresident alien who is required to file a U.S. tax return
  • U.S. resident alien who is (based on days present in the United States) filing a U.S. tax return
  • Dependent or spouse of a U.S. citizen/resident alien
  • Dependent or spouse of a nonresident alien visa holder
  • Nonresident alien claiming a tax treaty benefit
  • Nonresident alien student, professor or researcher filing a U.S. tax return or claiming an exception

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