Best Foreign Tax Planning for the Foreign Investor Owning United States Real Estate

The best foreign tax planning for the foreign investor owning United States real estate involves the use of an irrevocable trust.

The non-resident alien is faced with many different tax strategies and structures for an investment in U.S. real estate.   Asian and Latin American investors have difficulties because of the American estate and gift tax laws.

Some Western European investors (including those from the United Kingdom) can rely upon the estate and gift tax treaties with the United States.

This blog includes a 45 minute video explaining and diagramming the best international tax structure.  The foreign tax strategy needs to consider FIRPTA, gift taxes and estate taxes. 

Okay, you want a quick and easy answer. But, that is not American tax law.  Our tax law consists of more than 1,000,000 pages of hard to read laws.  Nothing is more complex than income tax. Yet, most small business owners meet with their CPA at year end with the fantasy that this will save taxes. At best, it reduces this year's taxes by increasing next year's taxes.

I know you are smart, but do you think you are smarter than  Albert Einstein

As Donald Trump said, he works very hard to pay the least amount in taxes.  The wealthy know that legally avoiding taxes is hard work. They will invest $1 in professional fees to save $10 in taxes.

“The hardest  thing to understand in the World is the income tax.”   Yet, most small business owners meet with their CPA at year end with the fantasy that this will save taxes.  At best, it reduces this year’s taxes by increasing next year’s taxes.

This blog’s video contains reference to sections of the Internal Revenue Code that your CPA or attorney will appreciate.  So, please consider sharing the video with him (or her).

If you need help with your international tax issues, then email me, Brian Dooley, CPA, MBT, at [email protected]

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