CPE: 1 hours
Advanced prep: None
Who should attend: CPAs and lawyers.
Nonresidents with US real estate investments face income tax filing requirements and taxation of rental income. Make sure you understand the federal taxation of rental income; how to prevent federal income tax of 30 percent of gross (not net) income from rental; different holding structures; and compliance requirements related to what to file and when. Also, we'll discuss branch profits tax rules applicable to foreign corporations and methods for eliminating that tax.
- Identify the filing requirements for direct, corporate, partnership and trust holding structures.
- Determine the branch profits tax and how to control it.
- Recognize how to make the net election so rental income is taxed on net rather than gross income.
- Identify withholding tax requirements that apply to different methods of owning real estate.
- 1120-F for foreign corporations holding real estate directly
- 1040NR: For foreign individuals holding real estate; for foreign grantor trusts; and for foreign nongrantor trusts
- Withholding forms and requirements applicable to different holding structures