Ask Experts Questions for FREE Help !
Ask
    catgismo's Avatar
    catgismo Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Apr 28, 2008, 02:41 AM
    Buying a property in the US
    Hi, I'm from hong kong and not a US resident but I recently develop interests in purchasing a property in the US and have it rented out as investment, I can probably purchase via 2 ways:

    (1) purchasing under my name - would like to check what taxes will I be subject to, will I incur withholding tax? And how does this work? Any other fees particularly attributable to my status as a foreign investor? How about getting a mortgage loan, should I get this from the US or from a bank in Hong kong, my friend advised I can get a mortgage with a US bank that has an office in Hong kong

    (2) purchasing under my sister's name who is a US resident, kindly educate me, what charges, taxes and fees will then incur in this scenario.

    Many thanks
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #2

    Apr 28, 2008, 05:33 AM
    You do not have to be a citizen to own property, there is a lot of property owned by non citizens, Since all of your credit is most likely in Hong Kong, yes doing business with a US bank that has officies in Hong Kong would most likely be easier.

    I do not believe there is any tax difference between you owning and a citizen owning property, there will be filing fees, when you buy, and yearly property taxes. The amount of these taxes vary greatly ( very greatly) by location of property
    catgismo's Avatar
    catgismo Posts: 5, Reputation: 1
    New Member
    		  
    #3

    Apr 28, 2008, 05:36 AM
    Hi
    Thank you so much for your reply. To my understanding, there will be withholding tax for no resident that is 30% which seems very significant and also is my concern... any idea on this area?

    Thanks again
    catgismo's Avatar
    catgismo Posts: 5, Reputation: 1
    New Member
    		  
    #4

    Apr 28, 2008, 05:37 AM
    By the way, I'm thinking to purchase a property in LA...
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #5

    Apr 28, 2008, 06:17 AM
    Well LA has different laws than anywhere in the US.

    I have sold several properties to non US citizens and to be honest no where on any paper work we ever did, does it even ask if you are a citizen

    Is this tax on merely the transfer of funds to the US like some income tax ? But your best bet with LA, since they are very special laws
    ** LA bases their law on French code, not English Common law as the rest of the US, But a phone call and small payment to a real estate attoreny would be best.
    catgismo's Avatar
    catgismo Posts: 5, Reputation: 1
    New Member
    		  
    #6

    Apr 29, 2008, 10:58 PM
    Thaks for your reply, I actually saw that in this article:

    500 Internal Server Error

    Quesiton is, if it will save me from the extra fees and taxes by purchasing as foreigner (myself) or US resident (my sister)...
    catgismo's Avatar
    catgismo Posts: 5, Reputation: 1
    New Member
    		  
    #7

    Apr 29, 2008, 11:02 PM
    Findarticles.com/p/articles/mi_qa5361/is_199807/ai_n21424553

    Try again
    GMakr's Avatar
    GMakr Posts: 2, Reputation: 1
    New Member
    		  
    #8

    Jan 15, 2011, 12:23 PM
    You will have to pay 30% tax on your rental income in the US if you file as a non-us citizen. So even though being a non-US citizen will not affect the transaction, it will affect your bottomline once you make rental income
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Co-buying property [ 5 Answers ]

What is the safest way to co-buy a property were going to flip? The house needs to be remodeled first. Both of us have great credit and income to afford the debt. We can pay cash for the property, but are concerned about running short on the remodel. My concern is how to best title the...

Buying the property you are renting [ 3 Answers ]

If you are renting a property, and before the lease is up you buy the property from the owner, when does the owner have to return to security deposit? (At closing or does he have 30 days)

Unmarried couple buying property together [ 2 Answers ]

My partner and I are buying a house, I was unable to get my name onto the mortgage because of adverse credit history in the past. His name will be the only name on the mortgage. I feel financially vuknerable. I will be making a 50% contribution towards the purchase of the house, also will be...

Buying a negotiated property in Arkansas. [ 1 Answers ]

I am new at purchasing tax deeds and just want some advice from experienced buyers. I am interesting in purchasing a negotiated property in Arkansas. WHat exactly can I do with the property? Can I rent it out or sell it right away, or do I have to wait? Also, with a tax deed, what can I do with...

View more questions Search