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Purchasing Real Estate Abroad: U.S. and Other Country Tax and Information Return Reporting Requirements

Note: CLE credit is not offered on this program

Recording of a 90-minute CPE webinar with Q&A

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Conducted on Thursday, August 31, 2023

Recorded event now available

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This webinar will examine the tax implications of purchasing real estate abroad. Our panel of foreign tax experts will explain the U.S. tax benefits of holding property abroad, holding structure considerations, and the particulars of buying real estate in certain countries, including Spain, the United Kingdom, and Mexico.

Description

There are many reasons U.S. residents purchase real estate abroad. Favorable exchange rates and the ability to rent the property can make real estate abroad a lucrative investment. Taxpayers may want a reasonably priced vacation home at less than the price of U.S. beachfront properties. Many of the benefits available for property purchased in the U.S. extend to foreign property. Mortgage interest, rental property expenses, and the Section 121 exclusion for gains on the sale of personal residences can apply by meeting the same qualifying requirements of U.S. property.

Some countries forbid foreigners from purchasing real estate or purchasing it directly. Many countries require property to be held by a corporation. Property held abroad might be bought through a U.S. LLC, a foreign corporation, a trust, or other entities. These structures can generate additional filing requirements of Forms 1120 or 1065 and Forms 5471 or 8865. Multinational taxpayers and their advisers need to know the nuances of purchasing real estate abroad and the relative tax consequences.

Listen as our panel of international tax specialists discusses the caveats and considerations of purchasing property outside the U.S.

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Outline

  1. Purchasing real estate abroad: an introduction
  2. U.S. tax deductions and considerations
  3. Holding structures
  4. Rental property in foreign countries
  5. U.S. information return reporting requirements for foreign real estate
  6. Specific countries
    1. Mexico
    2. Panama
    3. Spain
    4. United Kingdom
    5. Other countries

Benefits

The panel will cover these and other critical issues:

  • U.S. tax deductions for foreign property
  • How foreign rental property is taxed in the U.S. and abroad
  • Appropriate holding entities in specific countries
  • When U.S. foreign information return reporting is required for foreign properties

Faculty

Castillo, Nicolas
Nicolas Castillo
Managing CPA
Bright!Tax

Mr. Castillo previously worked as an International Tax Senior at Grant Thornton serving multinationals and expats.

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Groves, Melissa
Melissa Groves
Managing CPA
Bright!Tax

Ms. Groves has over 14 years' experience assisting individuals with their personal and business tax compliance.

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Access Anytime, Anywhere

CPE credit is not available on downloads.

CPE On-Demand

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