alternate income while on TN?

TheRealCanadian said:
It depends. What do you do if the heating goes out or repairs need to be made? .
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The caretaker "tenant" will call me; and I will make necessary arrangements like hiring a Contractor to get the Repair done.

TheRealCanadian said:
The problem with your situation is that it's not just an investment - it looks like there's something you actually have to DO, and that starts getting close to unauthorized employment. Any time you need to do something more to get your money than taking the check to the bank to cash it, it runs the risk of crossing from passive into employment income.
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My rental income would be hardly One fifth of my Main Employment income. And If I cut that income from the Expenses and Mortgage payments, I am left out with almost negligible income! I guess, I must try to contact some attorney for this advice also. Do you think, an Immigration lawyer ( having TN1 knowledge) would be useful? Unfortunately, it would be too expensive to hire an attorney for such an advice; and many times they hardly say "they don't know the answer", because then they may not be able to get their Consultation fees! As I would like to make all this as legal as possible, I can do what is Required to be done. But, I need a Consulting guidance from a knwledgible lawyer! Any ideas about searching for such a lawyer?

Please note that, my wife is planning to arrive in US (for the first time) in Feb 07 on TD visa from Fiji. Would it be possible for me to transfer my property on her name, and whether she could play the Role of a Landlord while being on TD visa?
 
CanadaIndianGuy said:
The caretaker "tenant" will call me; and I will make necessary arrangements like hiring a Contractor to get the Repair done.
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I don't know what to say - if someone at USCIS or CBP decides to make an issue out of this, they can. Or they might not. All I can say is that you do not have a safe harbor, whereas with a management company you do.

My rental income would be hardly One fifth of my Main Employment income. And If I cut that income from the Expenses and Mortgage payments, I am left out with almost negligible income!
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I don't see how this is at all relevant. If it's truly passive income, then it could be 100 times your employment income and be perfectly legal. If it's employment income, then it could be $10 and still be illegal.

I guess, I must try to contact some attorney for this advice also. Do you think, an Immigration lawyer ( having TN1 knowledge) would be useful? Unfortunately, it would be too expensive to hire an attorney for such an advice;
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I think it would be absolutely mandatory. It's puzzling to me, however, that you did not do so before you undertook this. Really, how expensive could it be relative to the size of your investment? You've probably put down or borrowed six figures, and you're worried about spending $100 or $200 on a legal consultation?

Talk to Jim Eiss, usvisahelp.com. He's experienced in TN matters.

Would it be possible for me to transfer my property on her name, and whether she could play the Role of a Landlord while being on TD visa?
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Considering that TD holders are unable to engage in employment of any sort, I am puzzled why you would consider this to be a viable option.
 
TheRealCanadian said:
All I can say is that you do not have a safe harbor, whereas with a management company you do..

I don't see how this is at all relevant. If it's truly passive income, then it could be 100 times your employment income and be perfectly legal. If it's employment income, then it could be $10 and still be illegal

I think it would be absolutely mandatory. It's puzzling to me, however, that you did not do so before you undertook this.

Talk to Jim Eiss, usvisahelp.com. He's experienced in TN matters.
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RC,i very much appreciate your answers here. But, I would like to clarify something before I approach the lawyer for an advice. I had heard of Canadians having their Second houses in Florida while living in Canada. And they travel there for a vacation in Winter times. And, I guess, it is very much possible that they Might be able to Rent out their houses as well. In that case, it was completely out of my mind that, this can be considered as the Second income or something!

But, after understanding your replies, I believe handing over my property to the Management company will make me completely a PASSIVE investor, so that there is No need for any Rent collections Or other maintenance tasks. In this way, this may be considered similar as me investing in US stocks Or 401K and so on. It very much makes sense to me now, which I had never thought earlier. Now, contacting the lawyer will probably clarify my doubt whether I really need a Management company Or Someone else like One of the tenants ( whom I can appoint as a Jenetor) can Completely manage the entire task for a monthly Fee , which could be worked out from his rents. In that case, I have a good possibilty of saving that unnecessary $150/ month to handover to the Management company. And on the paper, I at least completely can become a Passive investor without myself handling any of the Property tasks!!
RC, Will you please clarify whether my point makes sense based upon your answers?? I truely appreciate your inputs... Thanks again!!
 
One subtelty that you are missing is that these snowbirds who rent out a home in Florida, usaully do so while in canada. Thus any activities they undertake in managing the property are done remotely from canada, where they have complete right to do what they wish ... even if they were doing something illegal, that are not jeopardizing an existing US status, and certainly not their jobs.

That said, income from rental propert investment is in itself passive. The problem become is the number of units you have, as this greatly increases the likelihood that YOU will have to do something to maintain these properties (illegal), and decreases the likelihood that you will simply ask the tenant to handle it and reimburse them (legal).
 
nelson: you still see an issue, if you were on TN in USA and u got another short time contract and you left USA for month, performed the work and came back to USA on TN1 with you check (money paid for the work performed outside usa)
 
Shyboy said:
if you were on TN in USA and u got another short time contract and you left USA for month, performed the work and came back to USA on TN1 with you check (money paid for the work performed outside usa)
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So long as the work was performed outside the US, what's the issue?
 
Yeah, what issue? This has nothing to do with working in the US. Now, from a tax point of view, you would still need to report this income to IRS, as you are still resident in US. As I have repeated dozens of times over the years, it is not where the check was issued or where the work is performed where it comes to taxes, or even less where you keep the money afterwards: it is where you reside that is most important.
 
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nelsona said:
As I have repeated dozens of times over the years, it is not where the check was issued or where the work is performed where it comes to taxes, or even less where you keep the money afterwards: it is where you reside that is most important.
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For Tax purposes (IRS) - it all comes down to where you reside as to where it's taxable. They don't care where you did the work or where the check was sent - it's all about what country were you considered a "resident" of.

For USCIS (Immigration) - it all comes down to where you physically did the work. They don't care where you received the money or where you officially reside - it's all about where you did the work.

Correct?
 
TNguy78 said:
For Tax purposes (IRS) - it all comes down to where you reside as to where it's taxable. They don't care where you did the work or where the check was sent - it's all about what country were you considered a "resident" of.
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If you are a US tax resident, then they don't care where it was performed. It's all taxable. If you're not a US resident, if it was performed in the US it is taxable.

For USCIS (Immigration) - it all comes down to where you physically did the work. They don't care where you received the money or where you officially reside - it's all about where you did the work.
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Exactly.
 
nelsona said:
Yeah, what issue? This has nothing to do with working in the US. Now, from a tax point of view, you would still need to report this income to IRS, as you are still resident in US. As I have repeated dozens of times over the years, it is not where the check was issued or where the work is performed where it comes to taxes, or even less where you keep the money afterwards: it is where you reside that is most important.
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i clearly asked my accountant about this last year and he told me that only US Citizens subject to pay the income tax on their world income, not green cards holder as well as work permit holders.

What should I do, should I go back and fix my last year tax return? we are talking about 7K, Can I also claim my expenses as well?

Thanks,
 
What should I do, should I go back and fix my last year tax return? we are talking about 7K, Can I also claim my expenses as well?
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If you filed a 1040 (rather than a 1040NR) then it MUST include ALL world income. Period. You have elected to be treated as a US citizen, and the IRS expects all those present in the country for more than 183 days to do so anyways.

In the year you move to US, you have some wiggle room, but it would still require that you file a 1040NR, or a 'partial' 1040, which would not have been to your advantage.

In short, your acct was wrong. US citizens, Grren card holders, and those either live in US or meet a treaty definition of US residency, are taxed exactly the same. What rock did you dig this guy up from? H&R Blockhead?!

As for any deductions, sure! There is nothing preventing you from claiming US deductions for expenses incured in canada, as long as they meet US definitions.
 
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nelsona said:
That said, income from rental propert investment is in itself passive. The problem become is the number of units you have, as this greatly increases the likelihood that YOU will have to do something to maintain these properties (illegal), and decreases the likelihood that you will simply ask the tenant to handle it and reimburse them (legal).
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Hi Nelsona/ RC/ others interested in house investment,

I wanted to put some updates about Owning the Residential Triplex/Duplex property by a TN holder. I was almost about to arrange a Property management company to deal with my Triplex, in order to make a safe provision for my Legal TN status in US. As I did not get any clear answers from some of the Top Immigration Lawyer firms, I decided to directly ask this question to CBP and USCIS guys. Well, USCIS Rep was Not knowing the answer. Whereas I had called up CBP ( in Detroit area) and also General CBP inquiries from Customs Border website.

Both of them mentioned to me that, you can very much legally own a house/ duplex/triplex residential property. When I specifically asked both of them, what if I get Rental income from TWO of my other units! And both of them mentioned the same things. When I file my taxes , I should declare this Rental income. And, there is absolutely No problem with it.

It seems, I have got One Less thing to Worry about at the Moment;) . Probably, this might Not have worked in Case if I had Owned two/three seperate houses! The difference is, I am living in One of the Units in that triplex. And, I have got the Mortgage from a bank as a Residential Property , not a Commercial One!!!!
 
CanadaIndianGuy said:
Both of them mentioned to me that, you can very much legally own a house/ duplex/triplex residential property. When I specifically asked both of them, what if I get Rental income from TWO of my other units! And both of them mentioned the same things. When I file my taxes , I should declare this Rental income. And, there is absolutely No problem with it.
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Good for you. Now, when someone else at USCIS or another CBP agent has a different interpretation, are you going to say "some CBP officer I don't remember the name of told me it was OK?" :)

Again, you can own rental property and get income from it. No one has said otherwise; what you cannot do is be involved with management and maintenance of said properties.
 
And you only asked about OWNING property, you did not mention anything about making repairs, collecting rent.


When you go to the bother of asking questions, ask (a) the right ones (b) of the right people.
 
TheRealCanadian said:
Good for you. Now, when someone else at USCIS or another CBP agent has a different interpretation, are you going to say "some CBP officer I don't remember the name of told me it was OK?" :)

Again, you can own rental property and get income from it. No one has said otherwise; what you cannot do is be involved with management and maintenance of said properties.
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RC and Nelsona, Thanks for your Other side of Coin inputs!! It would be nice, if you can probably advise me in the next step. And, it will help me in taking a decision with some calculated risks!

My current TN is active from Apr 07 till end of Apr 08. And, I owned this Triplex in Sep 07. I am planning to file my taxes of 2007 just before the deadline , which is 15th Apr 08. And, I am planning to go to border for TN renewal in 1st week of Apr.

1) So, by all chances, they will surely Not have any records of me owning any house or triplex so far. Am I right?

2) The only time my tax records may appear to them is during my next TN renewal , which will be sometimes in Apr 2009. If I do Not win the H1b lottery in Oct 08, I will immediately approach Property management company to take care of my triplex in that case. Otherwise a good scenario would be, I will switchover to H1b visa in which case I may Not have to face the Border guys for TN renewal.
Does it sound like a good idea or not?

Thanks again!!
 
Personally, I avoid advising people in any endeavour I believe to be illegal.

managing a rental property also violates your H1


It's not the income, it's the WORK
 
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