foreign person buying NYC property.

just pay your tax, rich dude!

You will definately need to pay USA tax on your property and any income you make from it even as a non US passport holder. You will need to pay income tax on any rental income if you rent your place out, and you will need to pay capital gains tax when you sell.

google "Firpta" (which is not technically a tax but rather a withholding against future tax payments).

ali r.
DG Neary Realty

Also google CFIUS.

SHNY is correct. You pay capital gains tax which I think is now 20% if held for over 2 years. If your country has a double taxation treaty with US which undoubtably it has when your country charges you capital gained tax, the amount of CGT you paid in US is deductible.

Not sure of all of the details for foreigners selling in the USA, but I know that when I recently sold some property overseas, I had to pay the CGT in that country and then again in the USA. I'm supposed to receive some sort of credit for the CGT that I paid overseas from the IRS. We shall see...

Thanks for all your replies. Say for example, I have rental income of 50k usd after paying cc+re taxes - I will have to pay as well a tax on this 50k$ income? And if yes, how much wld that be? Txs

Marsnyc - email me at awalters@crrnyc.com is you want REAL ANSWERS.

Why should a non-resident form a limited liability company (LLC) and title the real estate assets in the name of the LLC?

To reduce legal liability exposure from owning a real estate asset in the US, and to reduce tax liability, a foreigner may own real estate - both commercial and residential assets - using a limited liability company usually formed in the state where the real estate assets are held. The formation of the LLC may allow the foreign non-resident to avoid withholding 10% of the gross sales from proceeds and the 30% withholding tax from gross rents, since the LLC is a US taxpayer.

Form a Real Estate Management Company with a US resident partner who will manage and control the disposition of the US real estate assets.
The LLC may then take advantage of the possible capital tax gains and tax depreciation benefits.
= Rental Income Tax

YOU NEED A SPECIALIST THAT DEALS WITH FOREIGN BUYERS = BROKER, LAWYER, TAX/ESTATE SPECIALIST,AND IF YOU NEED GREEN CARD IMMIGRATION LAWYER THAT WILL START FOR YOU EB-5

I was joking about CFIUS.

Forming a llc and finding a us partner is retarded for an 1 mill property. Use an offshore corporation or just file a us tax return upon sale to claim the refund on the overwithholding. If you want to invest 100 mill then tax planning makes more sense...

There's a lot of misinformation on this post. Let me correct a few things. First, long term capital gain generally applies if your holding period is more than 1 year. Second, US tax treaties uniformly exclude gains or rents from real property. Even if they didn't, it would not speak to deductibility- only the avoidance of double tax. Whether Marsnyc qualifies for a tax credit/deduction in his/her home country is a matter of the applicable foreign law. Third, the LLC structure does not save you any substantive tax.

shny- your gain on sale would have been U.S. source. If you don't have other foreign source income, you will not get a credit.

Please note this is not actual tax advice and you should obviously receive professional advice!

Which EU country are you from?

WHAT?! Mytwocents: Thnks. I will chck with my acct to make sure that I didn't screw up my understanding of what was/is going on.

As a pure investment I don't think that it makes a heck of a lot of sense for a foreigner to buy in NYC. One thing if you have compelling reason to get real property out of your home country, but as a pure investment and without a lot of the tax benefits and the costs that you might have to make down the rode in an ever strengthening US dollar, I don't think it makes a lot of sense. Is it Marseilles? 75% tax would scare me.

Ottawa, if the US dollar is strengthening that's all the more reason to get your money into USD-denominated assets like NYC real estate. I agree about the tax costs making the investment less attractive, though.