Though the city St. George is located in Utah, at the same time, it lies on the Arizona border. Thus, it covers a part of the Sunbelt region of the USA. The average winter temperature of this city goes below 0-degrees Celsius, but still, it is higher than that of Canada. Therefore, many Canadian Snowbirds prefer this destination to enjoy a short vacation during winter.
St. George is famous for its natural environment and scenic beauties. Various national parks like Zion National Park, Bryce Canyon National Park and Grand Canyon National Park are situated at nearby locations of this city. There are also several state parks, golf courses and recreation facilities. With the tourism industry booming in this city, many Canadian Snowbirds have engaged in rental businesses. They approach efficient Tax and License Consultants to resolve non-residents tax issues.
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Below, we have discussed some rules and regulations that you need to follow to run a rental business in St. George
How rental income is taxed?
You do not have to pay taxes on each and every amount received from your tenant. If your tenant pays for some types of repair works, you can easily keep that amount outside of your taxable rental income. But, you must not forget to declare all of your earnings.
If you receive an amount as a refundable security deposit from your tenant, then you don’t need to pay any tax on that amount.
You can deduct bill amounts of meals, hotels and transport charges from your rental income if those bills have been generated to perform activities for your rental business.
Know about the valuation process and tax rates
There are separate Property Tax rates in St. George for primary and non-primary residences. Generally, rental properties belong to the category of non-primary residences. Thus, if you own such a property in the St. George, then you have to pay a tax with the rate of 1.0046% and you need to pay 55% of it with your primary deduction. However, there are a lot of exemptions for senior citizens, disabled persons, special veterans, etc.
You may get confused about the tax rates involved in the rental business in St. George. Accordingly, you need to approach us at The Accounting & Tax. Here, we will provide you necessary recommendations to address your concerns about non-residents tax issues. We will also help you understand US non-residents tax filing requirements and the legal methods of migration.