Category Archives: Real Estate

 

Ever since the launch of Airbnb in 2008, the company has been used by ever increasing travelers to find suitable accommodations even in the remotest part of the world. For savvy travelers it is a platform to find an alternative place to stay. However, the property renters find themselves in a maze of complicated tax implications. Every year Airbnb reports to IRS the rental payments sent to their …

 

For individuals who are foreign to the United States (nonresident aliens for U.S. tax purposes), purchasing and renting U.S. residential and commercial real estate will require the filing of a US tax return 1040NR.  A nonresident alien should consider the following issues before, during and after purchasing rental real estate directly in the United States.

Owning the Property as an Individual or Single Member LLC (SMLLC): An SMLLC is a limited …

It may be advisable to buy property in a corporation. It saves you from the hassle of filing separate business tax returns, avoids the accounting fees and also limits your liability since for tax purposes an individual is considered a “disregarded entity”. However, bear in mind that any foreign income earned through the property such as rentals are subject to US taxation. Also, ensure …