An Introduction to the Taxation of U.S. Real Estate Held by Foreign Investors

An Introduction to the Taxation of U.S. Real Estate Held by Foreign Investors

Tax Law
By Anthony Diosdi Foreign investors actively invest in U.S. real estate by speculating on land and developing homes, condominiums, and commercial buildings. Many foreign investors own recreational property in popular U.S. beach and ski destinations. This article summarizes the U.S. tax consequences associated with a foreign investor’s acquisition of different U.S. property interests. This article also provides a number of tax planning options that should be considered by foreign investors when acquiring U.S. real estate.Types of U.S. Taxes For Investors Should Consider When Investing in U.S. Real PropertyThe acquisition of U.S. real property has no immediate U.S. tax consequences to the foreign investor. Although the acquisition of U.S. real property by a foreign investor will have no immediate U.S. tax consequences, there are a number of future tax consequences that…
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