Stuart T. Freeland, of Rackemann, Sawyer & Brewster, PC, writes about tax aspects of foreign ownership of US residential real estate.  His article notes that representation of foreign individuals who wish to purchase US residential property should include careful attention to the manner in which the income and gain from the property will be taxed in addition to the other aspects of ownership. In addition, it is important to be aware of the manner in which the US imposes its estate tax on foreign owners.

His article then proceeds to discuss the following issues:

  • involve home country counsel in the purchase.
  • the US Estate tax must be considered.
  • rental agreements should be used if property is held by a US corporation.
  • consideration must be given to US withholding requirements.
  • consideration must be given to US reporting requirements.
  • consideration must be given to tax treaties.
  • consideration must be given to state and local taxes.

Read full article at Tax Aspects Of Foreign Ownership Of US Residential Real Estate – Tax – United States.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.