Are you trying to decide on how to purchase U.S. Real Estate?

Presently long term capital gains tax rates are 15% for individual home buyers and no capital gains exist for C Corporations.  Federal corporate tax rates can be as high as 35%.  There is a tax savings on the capital gains on the sale of the property for a foreign buyer if it is held individually as opposed to a standard corporation.  The foreign home buyer may obtain the Federal Capital Gaines Tax Rate of 15% by creating an LLC and avoid the aforementioned taxes.  Instead of being subjected to the high corporate tax rates of 35%, LLC's allow individuals to be taxed at their own individual tax rate.  Therefore, as a result, the foreign buyer who owns the property individually, will not realize a significant advantage in tax treatment.  Even though there is not a huge difference in tax treatment between owning the property individually or through an LLC, there is definitely a difference in liability protection.

An individual property owner may be subjected to lawsuits in the U.S., however, an LLC can protect the foreign buyer's assets outside those owned by the LLC from liability.  Another great option is purchasing additional liability insurance.  A foreign buyer wishing to purchase the property individually may create an irrevocable trust to hold the said property.  This irrevocable trust will not be hit with estate tax when the foreign person passes away.  Also, an irrevocable trust can provide similar privacy protections to a corporation.  Revisions to title are possible after closing although additional fees generally come into play at this point, and in the case of non-U.S. residents, FIRPTA withholding where 10% of transfer value is held pending review by the I.R.S.  Just as there are various types of property ownership, costs do vary significantly between them. 

 If you are interested in purchasing U.S. real estate as an individual and you are a non-resident, please call me at 407-361-4064 or email me at: Claud@OrlandoPremiumProperties.Com so we can discuss all your options.