Income tax on rent, worked example, in US Virgin Is.
September 01, 2010
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1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner). The nonresident couple is electing to treat their income as effectively connected income.
2 Estimated values. Allowable deductions are insurance payments, commissions, management fees and expenses associated with rent collection, repairs and maintenance expenses.
3 These income tax rates are for married couples filing separately. Nonresident married couples are not allowed by law to file jointly in the US Virgin Islands.
4 Every individual doing business in the islands are liable to pay the 4% gross receipts tax in addition to the income tax. If annual gross receipts are less than US$225,000, the first US$9,000 monthly income is exempted from gross receipts tax.