News

Jan 2

Foreign Investment In US Real Property

January 02, 2012 By: Some of the most dangerously unknown tax traps exist in the realm of foreign investment in U.S. real property. With the high demand for U.S. real estate by foreign buyers, the opportunity to capitalize on great rebounding market has never been greater. While such investments are expected to yield great return in both in the short and long-term horizon, properly structuring the investment is crucial.  

• Limited Liability. The investment must be held in a limited liability form where the investor is protected from outside creditors.
• Management. The investment must account for the appropriate management structure to assure efficiencies and competency in the day-to-day operation of the investment.
• Tax Considerations. An appropriate entity structure must be set up in order to prevent estate tax inclusion of the investment upon the foreign investor’s death. Many foreign investors ignore this concern to their severe detriment. Furthermore, withholding of income tax both on the ongoing income generated by the investment as well as gains from the ultimate sale of the investment must be properly addressed.

 

At Dorot & Bensimon PL we will assist you in assuring your protection to the highest degree available in order to maximize your investment and avoid unnecessary tax implications. Once the appropriate structure is in place, you will be able to increase your investment at minimal additional set-up cost. Whether you intend on investing in a small apartment on South Beach, an entire building on Brickell, or a shopping center in Doral, our attorneys will vigorously and competently represent you throughout the entire process.

 

• Foreign Investment in Real Property Tax Act
• FIRPTA Withholding
• Withholding of Tax on Dispositions of U.S. Real Property Interests
• Foreign Persons Receiving Rental Income From U.S. Real Property

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