Non-Resident Investor

[anu31402]

One of my Real Estate business clients called in today. He's got a non-resident client who wants to invest in Residential Property. The property would be rented out.
My question is: The potential client does not have a social security nor a ITIN. How do I advise my realtor appropriately?

Your advice is well taken.

Harris, EA
NY

[Bees Knees]

Are you talking about selling property to a non-resident, and then this non-resident is going to use the property as rental?

If that is the case, your real estate client is under no obligation to give advise to the non-resident of his tax obligations. It is a non-issue.

If, however, this non-resident is going to contribute cash to buy into a partnership as part owner of residential rental property located here in the U.S., the non-resident would have to obtain an ITIN. Otherwise the partnership would be required to do backup withholding on the non-resident.