Tax Planning and Foreign Investors in United States Real Estate

The object of this video is to provide professional advisors and foreign real estate investors with an understanding of the United States taxation of foreign investments in United States real estate, and the numerous strategies that can be used to reduce the foreign investors United States taxation on profits from rental income and gains from the sale of United States real estate.

Total presentation time:  02:04:05
Level: Advanced

The concept of tax planning is like buying a suite of clothes – it’s important it fit right.  Same with tax planning — no case is the same and the tax planning is individualized and unique for each case.

Every single real estate deal will be a little different.

However, there are certain basics that will guide one into the planning for all of them and from there; the knowledgeable use of deductions, exclusions and how to defer the payment of U.S. tax from real estate income; together with the choice of the right investment entities that are the backbone of any good tax plan will significantly reduce and/or prevent U.S. taxes.

The Tax Planning Techniques

I.    Avoidance of the Double Tax

  • The Liquidation of the Operating Company

II.    Elimination of the U.S. Estate and Gift Tax and the Branch Tax

  • Tiered Corporations and Multiple Corporations – Flexibility, and Use of Losses

III.    The Foreign Trust – U.S. Estate Tax Avoidance and Income Tax Benefits

  • The Non Grantor Trust

IV.    Tax Bracket Advantages and Individual Planning

  • Use of the Limited Liability Company or Partnership – Multiple Taxpayers

V.    Avoidance of the Double Tax

  • Deductible Interest Income and Real Estate Profits

VI.    Tax Deferral

  • Delayed Tax Payment on Gains

VII.    Tax Free Income

A.    The Portfolio Interest Exclusion – Tax Free Income
B.     Attribution Rules
C.     Eleven (11) Investors
D.     Family Personal Loans
E.     Contingent Interest
F.     Structured Sales

VIII.    Partially Tax Free Income

  • Sale of Shares – Foreign Corporation

IX.    Tax Treaties

A.    Interest
B.    Dividends
C.    Estate Tax Treaties
D.    Branch Tax

Richard S. Lehman, Esq can help with all your United States taxation issues.

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