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 [...]

This is something that comes up again and again. Nonresident owns raw land (just dirt, nothing on it). There are some costs incurred each year — property taxes for sure, maybe mortgage interest, maybe a couple of other things. But property tax mostly. How can these costs get converted into a tax deduction? Answer: not [...]

This is for the members of my Foreign Investment in U.S. Real Estate Class earlier this week in San Francisco. We talked about the “net election.” Here’s the detail I promised. The law To learn everything about this, read Treasury Regulations Section 1.871-10. (PDF). The effect Rental income earned by a nonresident owner of U.S. [...]

It’s a common theme: nonresident real estate investors in the U.S. on the one side, and the IRS on the other, tapping its little bureacratic foot, waiting impatiently for tax returns to be filed.

For nonresident investors in U.S. real estate, it’s not a question of IF tax returns are due. It’s only a matter of WHEN.

Currently, nonresidents can earn interest on U.S. bank deposits and the IRS isn’t told a thing about it. There’s a good reason for it: this helps U.S. banks compete internationally for deposits. The Treasury Department wants to change this. Here is an update to the story and a copy of the Treasury Department’s letter to the U.S. Chamber of Commerce about the situation.