real estate investment in the US

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void

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Oct 3, 2017
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I have an (early stage) opportunity to invest into real estate project in the US. Having no US related business experience I'm interested in what implications it would have for me in terms of taxation, IRS encounter, etc.
 
In general, income from real property located in the United States that is owned by a nonresident alien is taxed at a 30% (or lower treaty) rate if it is not effectively connected with a U.S. trade or business
 
void said:
I have an (early stage) opportunity to invest into real estate project in the US. Having no US related business experience I'm interested in what implications it would have for me in terms of taxation, IRS encounter, etc.
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My suggestion is to own the Real Estate using a US LLC and elect the activity as us trade or business because in this way you can deduct a lot of expenses connected to the real estate and even use depreciation of it to have huge tax savings like other Americans are doing. This is a field I am currently studying and you would probably need the help of an accountant to do that.
 
void said:
I have an (early stage) opportunity to invest into real estate project in the US.
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1. What vehicles do you plan to use to invest.
2. Do the returns makes sense in current environment?


void said:
Having no US related business experience I'm interested in what implications it would have for me in terms of taxation, IRS encounter, etc.
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Depending on where and how much you invest high property taxes comes to mind if NY or CA is in scope 😕.

I would speak to a tax professional.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.
 
Martin Everson said:
1. What vehicles do you plan to use to invest.
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cash
Martin Everson said:
2. Do the returns makes sense in current environment?
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you personally will like this 🙂 - mining facility in huge trouble, the price is based on the valuation of land and buildings with significant discount, many options of alternative usage, very sensible investment even for non-believers, excellent risk/reward ratio for the convinced one
Martin Everson said:
Depending on where and how much you invest high property taxes comes to mind if NY or CA is in scope 😕.
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far from CA luckily
 
azb1 said:
In general, income from real property located in the United States that is owned by a nonresident alien is taxed at a 30% (or lower treaty) rate if it is not effectively connected with a U.S. trade or business
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True but you're free to elect to have the income treated as effectively connected with US trade and business. You do so in your 1st tax return and no need even for an LLC. What you miss out on as a non-tax-resident is the standard deduction.
 
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