How to handle taxes in USA when investing from UK?

Discussion in 'The Americas Real Estate' started by Catherine Underwood, Feb 11, 2019.

  1. Catherine Underwood

    Catherine Underwood New Member

    I live in the UK, but I am hoping to purchase property in California to rent out as Air BNB. What's a good place to look for tax advice? I want to pay all taxes that are legally due, so I would need advice on how to pay taxes in USA.

    I also know that governments often have incentives to allow one to legally minimise tax, so I would like advice on this too.

    I've tried contacting various tax specialists in the area where I am planning to purchase property but none of them deal with international customers. Any ideas?

    Please note: I want to 100% pay all tax that is legally due, so I don't want any schemes that avoid this or involve breaking the law.
  2. lookinginvest

    lookinginvest Member

    I have done some investigating at it seems quite complicated for different income/profits. I think you would pay tax in the UK as there is an offset arrangement between the UK and US. However, take professional advice to see exactly where you stand.
  3. wealthbuildingrealestate

    wealthbuildingrealestate New Member Forum Partner

    Hi Catherine,
    There are a few good licensed CPA's that I know here in the U.S. that do have experience with assisting overseas real estate investors. If you would like for me to share this information, please send me a PM.
  4. John Wilson

    John Wilson Member Premium Member

    Hi Catherine -- as a UK expat living in the US, I know that advice on this is very hard to come by on both sides of the Atlantic, so I sympathise. I paid someone in London £300 to consult on this kind of thing before I emigrated but I've actually found that the cheapest source of tax advice is via the US TurboTax tax software company. They have a version for about $160 where you can speak to a qualified CPA (who knows or has access to all the info you need, including international) whenever you like. I just wish I found that service before I paid another CAP thousands to do my tax last year!

    That's the route I'd go but if you want, I can dig out the details of the tax consultant in London I spoke to for you?
  5. John Wilson

    John Wilson Member Premium Member

    PS If it's like it is for me, then both HMRC and IRS (and Cali state) will want to know about your income but you won't necessarily pay tax to all of them.
  6. Emi Roy

    Emi Roy New Member

    It's hard to cope with even for residents. As for foreigners, it seems impossible to manage it yourself. I would advise you to hire a property manager there.
  7. Longterminvestor

    Longterminvestor Administrator

    Are you talking about foreign investors or US property investment in general?

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