U.S. property can diversify your wealth. We structure the purchase, file every U.S. return and keep your rentals insured while you manage from abroad.
Investors outside the United States work with our office to form the right company before they buy, handle the net basis election and Form 5472 each year, plan for a sale, and insure every property.
Reviewed by Orkun Ozkaymak, CPA, MBA·Clients in all 50 states and abroad
For investors abroad, U.S. rental property offers a dollar-based asset and a way to diversify beyond their home market. Most hold it through a U.S. company, which makes the property easier to own, manage, finance and eventually pass on.
The tax rules for foreign owners are different from the rules for U.S. residents, and the biggest decisions happen before closing. Our office plans the structure with you, sets up the company and its books, coordinates with your property manager, and files every return while you stay where you are.
The questions international investors ask us most before and after they buy.
Owning directly or through a U.S. LLC is simple, but it can leave the property exposed to U.S. estate tax, where nonresidents get only a $60,000 exemption. A corporate structure can change that, with its own income tax trade-offs.
How we helpWe compare direct, LLC and corporate ownership for your country, your heirs and your exit plans, then form the company before you close.
Without an election, rent paid to a foreign owner is taxed at 30% of the gross amount, with no deduction for mortgage interest, repairs or depreciation.
How we helpWe file the net basis election so you are taxed on profit at regular rates, and give your tenant or property manager Form W-8ECI to stop the withholding.
A foreign-owned single-member LLC must file Form 5472 with a pro forma Form 1120 every year, and the penalty for missing it is $25,000.
How we helpWe put your company on our filing calendar, prepare your U.S. and state returns and send reminders before anything is due.
When a foreign person sells U.S. property, the buyer generally must withhold 15% of the gross price under FIRPTA, even if the actual tax is much lower.
How we helpWe plan the sale early, apply for a reduced withholding certificate when it makes sense and file the return that claims back any excess.
Tax, accounting and insurance under one roof, so the numbers on your return, your books and your policies all agree.
The recurring deadlines international property investors face most often. We track them for you and send reminders before anything is due.
Dates shown are for calendar-year filers. When a due date falls on a weekend or holiday, it moves to the next business day.
Your QuickBooks tracks each property and the money you send in or take out, so every U.S. return is based on records you can review from anywhere.
Our office sets up QuickBooks Online with a chart of accounts designed for your industry and your entity type, mapped line by line to your tax return. Your books are ready for filing season all year.
Yes. There is no residency requirement. A U.S. LLC owned by one foreign person files Form 5472 with a pro forma 1120 each year, and the owner reports the rental on Form 1040-NR.
Nonresidents generally owe U.S. estate tax on U.S. property above a $60,000 exemption, at rates up to 40%, unless a treaty provides relief. The ownership structure you choose before buying makes a large difference.
The buyer generally withholds 15% of the gross sale price under FIRPTA. Your actual tax is calculated on your U.S. return, and any excess withholding is refunded. A withholding certificate can reduce the amount in advance.
Request an insurance quote, or start your company with our office. Prefer to talk first? Book a time, virtual or in person.