Hi everyone,
Thanks in advance for any advice on this question.
I am wondering if the date that my husband arrived in the US (on a CR1 visa) - which is the same date as he obtained his green card - is the same date that his income became reportable and taxable? He did NOT meet the substantial presence test for the year he arrived. My understanding is therefore that his residency started on the date he arrived.
Here is what I have found in the IRS guidelines, with the key part in bold, which makes me think this is correct: https://www.irs.gov/individuals/international-taxpayers/residency-starting-and-ending-dates
"If you meet the green card test at any time during a calendar year, but do not meet the substantial presence test for that year, your residency starting date is the first day in the calendar year on which you are present in the United States as a lawful permanent resident (the date on which the United States Citizenship and Immigration Services (USCIS) officially approved your petition to become an immigrant)."
Similarly, on this page: https://www.irs.gov/individuals/international-taxpayers/taxation-of-dual-status-aliens
"For the part of the year you are a U.S. resident alien, you are taxed on income from all sources. Income from sources outside the United States is taxable if you receive it while you are a resident alien."
Income from sources outside the United States that is not effectively connected with a trade or business in the United States is not taxable if you receive it while you are a nonresident alien."
So, for example, if he arrived on 1st September, does that mean his income (all foreign) from Jan-August does not need to be reported (and is not taxed) at all? Is anyone able to confirm or deny whether this is correct? If correct, can we file Married Filing Jointly and we simply don't include my husband's income before his residency start date?
The reason this is in the landlord section is because the income in question is rental income from our foreign property (which was paid into his individual foreign bank account). I am trying to work out when this rental income became reportable, and also how to determine the 'placed in service' date for depreciation purposes (I'm assuming those two things can be considered to occur on the same date?)
Thanks again for any help!
