Legal Structure & Taxation for Foreign Investors buying RE in US
Hi BP,
Was wondering what the set up and implications are regarding Foreign Investor buying RE within the US. (inquiring for a cousin)
Legal Structure:
- Would an LLC be the ideal set up?
- If they were to buy all cash, would i be able to handle all of their matters with power of attorney?
- in the case they want to do a refi/cash out, would additional criteria apply to an LLC held by a foreign investor?
Taxation:
- I assume taxation would be the same like on any other LLC. but how would taxation work overseas given that they are receiving rental income from the states via LLC?
- Can the foreign investor use a 1031?
-Upon the foreign investor selling the house for a profit, capital gains tax occurs in the states and overseas? how would that all work?
Thanks in advance.