Real Estate Development Taxation

2 Replies

Hello Guys,

If I invest $ 1 Million dollar in a real estate development project and the net profit for this project is 100% or 1 million dollar , how much tax should I expect to pay for this profit? what would be the legal ways to avoid or minimizing paying taxes in this scenario ? ( Please consider the fact that this project is overseas, and I'm a U.S citizen)

Thank you,

Navid

@Navid T. , Based on what I have seen here, International taxation is not discussed here as much and it is complicated. 

If you are actually investing a Million dollar, it would be worth your money to talk to someone who specializes in this area. 

@Navid T.

I'll second @Ashish Acharya . A deal of this size requires engaging 2 people: an accountant and an attorney. I would even say 4 people: two from the US and two more from the country where the development is taking place.

International taxation is not only very complicated, it is usually specific to the country where the income is generated. There is an interplay of local taxes and US taxes, and often it is complicated by "treaties" which are agreements between two countries that set special rules just for those two countries.

I would not rely on some generic online advice in your situation. Good luck.