I need some advice from experienced members who have purchased a property in the US and have lodge their tax return in the past. I have called around a few accountants who can do tax returns for US properties, but they do charge an arm and a leg! one qouted me $2100 to setup the partnership, EIN and ITIN, and individual returns for two for 2011 year and $1300 every year after. another one quoted me for $1400 each for individual return without partnership and $1000 every year after.
Here's my situation:
-We purchased the Condo in Miami, back in 2011 and settled and rented out sometime in November last year.
-The Condo was purchased with cash we have financed from savings and equity from our Australian property.
-The condo was new when we purchased since no one have lived in it before, but the building is about 4 year old with most of the units been already occupied.
-The Condo is under me and my wife's name.
-Our plan is to sell it within next year when we are happy with the capital gain.
-I stopped working full for about 4 months ago starting a business, not yet making a positive return(reduction the capital gain?)
So I want to know how you structured your tax return in US? if you have used a accountant, and are quite reasonable, please give me some contacts.
any help would be much appreciated I am still very confused after a day of research and calling around.Nigel KibelParticipant@nigel-kibelJoin Date: 2005Post Count: 1,425
i recommend you speak with Donna Shaw she is a us tax accountant who lives in Melbourne. Her number is 0412260758. She is very good.
However its worth pointing out if you are going to invest in the United States it is important that you look at more than one property otherwise it can be expensive to look at professional services.
Thanks Nigel for your referral, I will have a chat to her next week. yes It is quite expensive for to get the accounting done for just the single home. If we looking at refinancing the the property and use the equity to purchase another one do you know of any financial institutions that will lend to foreign investors?
and the likely taxation structure to go about this?
Thanks in advance.Texas Cash Cow Investments AustraliaParticipant@texas-cash-cow-investments-australiaJoin Date: 2011Post Count: 71
I can also back up Nigel's referral to Donna Shaw who is based in Melbourne. Not sure exactly where your from but you might also find this list useful
I am from Sydney, I am not sure the whole process needs to be face to face consultation of if it can be done over the phone.biggaz13Participant@biggaz13Join Date: 2011Post Count: 62FacilitatorMember@facilitatorJoin Date: 2012Post Count: 14
It can be best sometimes to use a family trust as the member of yourt LLC to own US property. That way you can split income and take advantage of the new $18,200 tax free threshold for any beneficiaries. Only adult children can use this though, minors are taxed heavily. As for the US tax i can recommend my accountant or several others in the Florida or Texas areas.
I recommend using financing to increase your property position over in the US, <moderator: delete advertising>
MarkcasperamParticipant@casperamJoin Date: 2012Post Count: 5Big JohnParticipant@big-johnJoin Date: 2013Post Count: 13
Thanks All. I am right for tax returns but what about someone who can give advice on structuring your affairs to minimise tax? The people I've been referred to so far charge an arm and a leg.
Big JohnTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
That is the trouble with international investments. This is a very complex area and you must expect to pay for this extra complexity. You need someone with a masters in tax, as the average tax person wouldn't know much.