Welcome To Jeff Adams Real Estate

Jeff Adams; Jeff Adams Real Estate; Jeff Adams Scam Tips; Jeff Adams Reviews

Sunday, 4 May 2014

Jeff Adams Real Estate Seminar Understand the Tax Ramifications of Real Estate Investment

The Jeff Adams Real Estate Seminar first foreigner to have ever bought a real estate property in the United States was Peter Minuit. This opens the doors to foreign real estate investor. After a couple of centuries later, foreign real estate investment has grown into huge scope, accounting for billion-of-dollar worth of industry.

The low risk attached to US real estate market, the accessibility of innumerable properties, and the firm market liquidity attract foreign investors in droves. 

What you have to understand is that foreign investment in the United States can take a lot of forms. He can acquire an interest in the real estate through a partnership, a limited liability company. The latter is the typical arrangement used by foreign investors.

Limited partnership or Limited Liability Company offers financial protection or indirect asset protection, especially in cases of bankruptcy, lawsuits and taxes. Foreign investors are generally taxed on the property as if they hold the property in direct interest.

Ideally, you should secure the services of a real estate accountant to help you out with the tax ramifications, but it would help if you, at least, know the basics before you actually talk to an accountant.

There are tax penalty that you have to deal with when you buy a real estate in the United States. Your investment in real estate can be treated as a selective investment and will be accounted for as an investment income which can either be fixed or a periodic income. This is an average taxed at 30% of gross revenues. Tax rates would be different depending on the tax personality the foreign investor opted for. For instance, a corporation would be taxed differently.

By knowing all these things; you may save yourself from a lot of hassle when you lastly approach a real estate accountant. It is, however, very important that you secure the services of an accountant. You'd have an easier time dealing with the tax ramifications. You'd also have assistance ensure that you comply with all the accounting feature of your investment.

Related Post