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Addicted to Real Estate - Why I Can't Stop and Why You Should Start

We will even briefly highlight dispositions of U.S. property investments, including U.S. real property interests, the meaning of a U.S. real property holding corporation "USRPHC", U.S. tax consequences of buying United States Real Property Interests " USRPIs" through foreign corporations, Foreign Investment Real Property Tax Act "FIRPTA" withholding and withholding exceptions.

Non-U.S. citizens choose to invest in US real-estate for numerous reasons and they will have a varied array of aims and goals. Many may wish to insure that most processes are handled quickly, expeditiously and correctly as well as privately and sometimes with complete anonymity. Secondly, the matter of privacy when it comes to your investment is incredibly important. With the rise of the internet, private information is becoming more and more public. Although maybe you are needed to reveal information for tax purposes, you're not required, and shouldn't, disclose property ownership for all the world to see. One purpose for privacy is legitimate asset protection from questionable creditor claims or lawsuits. Generally, the less individuals, businesses or government agencies know about your private affairs, the better.

Reducing taxes on your U.S. investments is also an important consideration. When buying U.S. real-estate, one must consider whether property is income-producing and whether that income is 'passive income' or income created by trade or business. Another concern, specifically for older investors, is if the investor is really a U.S. resident for estate tax purposes. Tembusu Grand

The objective of an LLC, Corporation or Limited Partnership is to make a shield of protection between you personally for almost any liability arising from the activities of the entity. LLCs offer greater structuring flexibility and better creditor protection than limited partnerships, and are usually preferred over corporations for holding smaller property properties. LLC's aren't subject to the record-keeping formalities that corporations are.

If an investor uses a corporation or an LLC to hold real property, the entity will need to register with the California Secretary of State. In doing so, articles of incorporation or the statement of information become visible to the world, including the identity of the corporate officers and directors or the LLC manager.

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