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Say a Japanese citizen (living and working in Japan) owns a house in the US and rents it out (to a US resident) for \$10,000 in 2020. (Assume the value of the land is negligible.)

Where in the US BOP does this \$10,000 appear?

I initially thought this should appear under Primary Income (PI). But the BPM6 (p. 178) says

Rental is also used as a term for the amounts payable under operating leases for produced assets, and is a service. ...

In contrast, rent is used to describe amounts payable under a resource lease covering natural resources, such as land, water, or mineral rights. Rent arising from such resource leases is included in the primary income account

So where does the \$10,000 appear in the US BOP? Should it instead be an import (of services) under the Goods and Services Account?

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  • $\begingroup$ Seems like the same situation as dividends - buying a rental property is (simplistically) buying an income stream. $\endgroup$
    – user253751
    Jan 22 at 19:05

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