Hi Trophy
I dont know why Brennans said you didnt need a ITIN, I have had conversations with them (Karen) telling them I wasnt getting any help from the US agents (ABC) on this matter.
As I understand it if you have a section 8 tennat and therfore are getting paid by the State, then they want to make sure 1. who they are paying and 2. that you pay them any income tax that may be due from your rental 'buisness'.
So, either they pay you (to an identified ITIN), or they ask the agent to withhold 40% (maybe 30%?) of the rent for tax. Any surplus would be paid back after you submit your first US tax return and get an ITIN.
Witholding such a large percentage is not good for you, as with deductions (expenditure) your profits and eventual tax bill will not be this high.
Therfore you need to get an ITIN quickly and avoid witholding taxes.
This is where I am at. You need to fill in a form asking IRS for a ITIN before the normal tax year end (December). With this form you need to send a copy of the deed of purchase and a letter from your rental agent saying you have Section 8 tenants (this is what I've been trying to get from ABC).
I'll paste on another post the IRS letter I have about where/how to obtain ITIN.
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