Pioneering a path through paperwork and tax codes

A Place in the Sun Live – NEC Birmingham

Over 6,500 property hunters attended A Place in the Sun at NEC Birmingham in September. Despite this being the first event since the Brexit vote took place, attendees demonstrated a strong enthusiasm for purchasing a property out side of the UK. Alan and Susan Harding met many with clients on the stand as well as… Continue Reading

Arrests Made in IRS Phone Scam

  Newspapers report on call center workers posing as IRS tax collectors to rake in tens of millions of dollars.. Thousands of US citizens may have been targeted in a huge tax scam run from call centers in Mumbai where hundreds of workers were allegedly trained to speak in American accents in order to steal… Continue Reading

IRS Begins Mandatory ITIN Renewals

The IRS will begin implementing changes  in the Individual Taxpayer Identification Number (ITIN) program which will require many ITIN holders to renew their numbers.  The change comes as a result of The Protecting Americans from Tax Hikes Act (PATH) passed by Congress last December. All ITINs not used on a federal tax return at least once in the last… Continue Reading

Common ways for non-residents to hold ownership of U.S. real property

Listed below are some common ways for non-residents to hold title (ownership) in US real property. Please note:- The list below is not exhaustive, is intended for information purposes only and is not a recommendation on how to take title in U.S. real property.  Buyers should therefore not rely on these definitions and should carefully… Continue Reading

Income Tax

Form 1040NR Filed annually to the Internal Revenue Service (IRS) due by June 15th (for most non-resident homeowners) All property owners residing offshore who receive income from their investment and rental properties, where IRS withholding has not been applied, must file a U.S. income tax return. The U.S. tax year runs January to December and… Continue Reading

Capital Gains Tax

Payable on the net gain of your property to the IRS Defer Capital Gains Tax by using 1031 Exchange FIRPTA Withholding (15% of gross sale price of property). Long Term and Short Term Gain Capital gains tax is payable on the net gain from the sale of property.  The gain is calculated by taking the sale price… Continue Reading

FIRPTA (Foreign Investment in Real Property Tax Act) Witholding

Withholding of Tax on Dispositions of United States Real Property Interests The disposition of a U.S. real property interest by a foreign person (the transferor) is subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) income tax withholding. FIRPTA authorised the United States to tax foreign persons on dispositions of U.S.… Continue Reading

Withholding on Rental Income

Withholding of 30% is applied to gross rental income received by a managing or rental agent on behalf of a non-resident owner of U.S. rental property. Non-resident rental property owner Foreign individuals and foreign corporations may elect to have their passive rental income taxed as if it were effectively connected with the U.S. trade or business. Once… Continue Reading

Reporting to the Bureau of Economic Analysis is Required when …

All foreign investments in U.S. business enterprises in which a foreign person or foreign corporation owns a ten-percent-or-more voting interest (or the equivalent) are subject to reporting, including all ownership of real estate, improved and unimproved, other than for personal use. Reporting to the Bureau of Economic Analysis (BEA) is required pursuant to the International… Continue Reading

U.S. Wills, Trusts & Estate Tax for Foreign Investors

Wills & Trusts Technically, whilst you are not obliged to have a U.S. will, significant delays and expense may be incurred where there is no U.S. will in place in the event of death, particularly in the case of a single owner. Even when holding a will in your home country, probate in the U.S.… Continue Reading

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