Scenario: Me (USA citizen) and my spouse(non-resident of USA) co-own a property in USA. We moved out of States in mid-2024 and the property is on rent since then.
ITR status: Married filled jointly for 2024 as we both had USA income for few months before we moved out.
Questions:
1- Do we need to continue file ITR as married filling jointly as we co-own the property? My understanding is that my spouse doesn't need to file taxes in USA being a non-resident of USA and has no USA income.
2- How much taxes are we liable to pay on the rental income?
3- We have mortgage on this property that we are planning to close by pre-paying. Is it advisable to keep the mortgage or close it for the benefit of ITR? Is there a deduction on mortgage that we can show by keeping it such that it can lower our taxes on the rental income?
4- Is there a calculator that we can use to pre-calculate the taxes on our rental income after all the deductions?
Thank you!
