Income tax on rent income for foreign owner? Looking at IRS form 527 I cannot tell what tax rate I need to pay to file my 1040NR?

The property is actually under a state LLC and the property is titled to my daughter who has her green card. However, the point of the LLC is that this house will assist me to supplement my pensions when I retire in a couple years. It is definitely connected to a US trade or business.

There is no witholding now as the house is titled to a US person and I myself was a US resident until shortly before I bought the house. And the house is specifically controlled by a US LLC.

From the link Anonymous sent, I see this paragraph:

If, on the other hand, the foreign investor is engaged in a U.S. trade or business such as the developing, managing and operating a major shopping center, the rental income will not be subject to withholding and will be taxed at ordinary progressive rates.

From this, then can I assume that I would pay taxes on my $6500 net income at the rate of 15%. Because this is what the progressive tax rate for me would be for this amount of income. However, I know I still have to kick in as much again to the Canadian government.

Irs Form 527

http://www.irs.gov/Individuals/International-Taxpa...

Read the above.

You have to elect to treat the property as effectively connected to deduct expenses and use the graduated rates.

Two, once you have filed with the election, then you can tell your renters (or management company) that they can stop sending 30% of the rent to the IRS for you.

When you sell, be advised, the depreciation comes back to bite you at up to 25% tax. You only get the LTCG rate on the amount it sells for above the original purchase price.

You really need to hire a professional who knows both rental properties and 1040NRs to do the first year's return.