Have questions about owning a U.S. real estate as a non-U.S. national? Or perhaps you’re looking to sell or rent your U.S. property for income. These articles may answer them – contact us for more help.
Proving the Obvious In a quick email exchange I had with Susan Brown Otto (hi Susan) we touched on a topic that deserves attention. The topic is not terribly difficult, but its existence points to a meta problem. Susan’s question/comment was about the non-requirement of withholding that is required when nonresidents own U.S. rental real…
How I Think About Real Estate Holding Structures Foreign investors in U.S. real estate always have the same question: How should I own the real estate that I am buying in the United States? This is how I think when I think about that question. If you sit down in my conference room and talk…
Hi, it’s Phil Hodgen again. Welcome again to the Friday Edition. This episode is written from seat 3E on American Airlines flight 126 — LAX to Chicago. Wifi in the sky for the win, right? (Also: Bose noise-cancelling earbuds are essential for flying sanity and preventing the post-flight head-buzz from all of the engine noise….
Hi, it’s Phil Hodgen again. Welcome to the Friday Edition. If you want to stop getting this thing every Friday, just click the “unsubscribe” link at the bottom of this email. I won’t be offended. On the other hand, if you want more emails like this, you can sign up for one of our other…
Hi, it’s Phil Hodgen again. Welcome to the Friday Edition. If you want to stop getting this thing every Friday, just click the “unsubscribe” link at the bottom of this email. I won’t be offended. On the other hand, if you want more, you can sign up for one of our other mailing lists. Real…
Hi, it’s Phil Hodgen again. Welcome to the Friday Edition. If you want to stop getting this thing every Friday, just click the “unsubscribe” link at the bottom of this email. I won’t be offended. On the other hand, if you want more, you can sign up for one of our other mailing lists. Real…
Hi, it’s Phil Hodgen again. Welcome to the Friday Edition. This week’s episode is coming from Wall Street. (Well, technically the intersection of Water Street and Wall Street.) I’m here to give a presentation to the New York State Society of Certified Public Accountants on expatriation. If you want to stop getting this thing every…
Greetings again, digital nomads. This week we’ll go back to basics: the foreign earned income exclusion. Form 2555.
I’m going to show you an element that is almost universally ignored by everyone. They’re probably right to ignore the problem, but it is important to know that a problem exists, and why you can safely ignore it. This week’s episode is buried, in other words, somewhere in Donald Rumsfeld’s brain. I aim to take an known-unknown and make it a known-known, so you can then ignore it with impunity.
We (the team here at HodgenLaw PC) will be presenting a series of four webcasts for the California Society of Certified Public Accountants. I am preparing the first set of webcasts on a topic I really like – U.S. real estate investments by nonresidents. Shameless sales promotion: you should sign up for the CalCPA webcast.
This week’s Friday Edition is spawned by me being hip-deep in that topic.
TL;DR
Nonresidents who own vacation homes in the United States cannot take tax deductions for any of the costs of ownership.
I have been long silent on this topic but for those of you who need the information, here it is. Folding The Swiss government and banks are folding like a bunch of cheap patio chairs. Banks have started and will continue to hand over over information about their U.S. customers to the IRS. Expect this…
Don’t have a foreign corporation own U.S. rental real estate. You will pay extra tax on the rental income.
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…
If you are a nonresident of the United States and are considering real estate investments in the U.S., the first thought is “Where do I start?” It is a big job to buy real estate in your home country. Investing in a faraway land adds to the complexity. Here is a quick set of milestones…
Comment: This little FAQ is a simple (for certain values of $SIMPLE) 🙂 explanation of the branch profits tax for nonresident investors in U.S. real estate. As a general principle it is a Very Bad Idea for nonresidents to own income-generating U.S. real estate through foreign corporations. If you live in a country that has…
U.S. tax law says that a U.S. citizen — no matter where he/she lives — will be taxable on worldwide income. But if you’re a U.S. citizen living in Switzerland you’re taxable as a resident there. Both country wants to tax you. Which country gets first crack at you when you take a distribution from…