Presentation and Q&A: Global Real Estate Transactions

What: Global Real Estate Transactions — Presentation followed by Q&A Time: Tuesday, January 14, 2014 from 1:00 PM to 2:00 PM Where: Malibu Public Library — 23519 Civic Center Way, Malibu, CA  90265 Host: Malibu Association of Realtors – Global Committee Phil will be part of a presentation and Q&A session along with Mitch Creekmore, […]

Make the net election once

Nonresidents who have U.S. rental real estate will usually make an election to have their rental income taxed as if they were residents of the United States. They do this because it results in lower income tax.  It results in lower income tax for a simple reason:  if they don’t make the election their rental […]

Speech to South Bay Association of Realtors

I just got back from a lunchtime speech to the South Bay Association of Realtors (that’s Torrance, Hermosa Beach, Manhattan Beach, Redondo Beach, etc. for those of you outside Southern California.  They’re having a week-long Certified International Property Specialist certification course.  I was part of the entertainment today.  Good time. I did the “FIRPTA in One […]

Net election procedure for foreign partners in partnerships holding U.S. real estate

Note: this is another answer for the accountants who took my all-day courses in Pleasanton in January. The “Net Election” is an election by a nonresident of the United States who owns U.S. real estate. This is an almost mandatory election for a nonresident investor. The default U.S. income tax paid by a nonresident on […]

How and when a nonresident investor in U.S. real estate makes a “Net Election”

By default a nonresident investor is taxed harshly on rental income from U.S. real estate holdings: 30% of gross rent is the Federal income tax, with no offset for operating expenses. If you are collecting $1,000 per month in rent, this means your monthly income tax is $300, leaving $700 to pay the mortgage, property […]

Real estate holding structures for nonresidents – tax law changes coming

This is a distant early warning to nonresidents with U.S. real estate investments. The warning applies to multi-national corporations as well (businesses that operate in the United States and elsewhere in the world) but I am going to focus on real estate investors here. RISK An proposed change in U.S. tax law may double the […]