Tax Planning For Aussie Purchasing U.S. Real Estate

Buying property in the USA is a brilliant way to secure the future, especially when taking into account the current timing for Aussies. Investing in properties overseas reduces the risk and brings more safety and reliability. It can also pave the way towards an opportunity to start gaining income passively, become more financially independent and stop relying exclusively on the paychecks.

The decline of prices for U.S. homes along with the lower value of the U.S. dollar against some foreign currencies has been urging investors from various places in the world to buy U.S. Real estate as both an investment opportunity and for themselves. Due to poor information, many foreign buyers do not examine the U.S. tax consequences which are related to such investments in U.S. real estate carefully enough.

When proper tax planning is conducted, a foreigner that intends to buy U.S. real estate can skip the personal U.S. tax return filing commitment and reduce the U.S. federal income taxes up to a minimum. It is best if the tax planning occurs prior to the purchase, although it also often done after the acquisition.

This kind of arrangement usually allows the non-U.S. lender to receive the interest payments federal income tax free, while permitting the corporation to withdraw the interest payments and diminish its  liability to U.S. tax. Identifying a property and taking advantage of the moment is usually the easiest part of the process for foreign investors. However, deciding about the right structure for the acquisition requires much more sitting on the fence. Adhering to proper planning prior to the purchase can lighten the risk from both tax and legal standpoint.

If you are Australian and considering to dive into the options of USA property for sale, look no further than all of the stable and exciting opportunities this country has to offer when it comes to investment and future capital growth. The US properties that landowners offer are affordable, cash flow positive right from the beginning and of extraordinary quality.

USA is currently enjoying a strong and steady economic growth, characterized with a rapid rise of  wages and a slight improvement of the unemployment rates.

Most Australians today hold investments in superannuation funds and Australian property in the midst of a heavy deterioration of Australia’s economy. This is why investing in USA property for sale can help diversify your assets, shielding you and your family from any local economic downturn that might occur.