US Taxes for Global Real Estate Investors Explained | “Report Twice, Pay Once” Rule

US Taxes for Global Real Estate Investors Explained | “Report Twice, Pay Once” Rule

Do foreign investors get double-taxed when earning income from U.S. real estate?br This video breaks down the truth about U.S. taxes for global investors—including fractional ownership, withholding tax, DTAAs, and deductions.br br ⭐ What You’ll Learn:br br Why paying tax is NOT a penalty but proof of a real, regulated investmentbr br The difference between fractional ownership vs. REITsbr br How DTAA (Double Taxation Avoidance Agreements) prevent double taxationbr br The two-stage process:br Stage 1: US taxes rental income at source (20–30 withholding)br Stage 2: Your home country gives you Foreign Tax Creditbr br The core principle: “You report twice, but you pay once.”br br How deductions like maintenance, mortgage interest & depreciation lower your effective US taxbr br Smart structuring using a US LLCbr br How platforms automate 1099K-1 formsbr br Why advanced investors use a 1031 exchange to defer capital gainsbr br 📌 Example Covered in Video:br br On a $10,000 investment earning 7 ($700 income), the global tax burden becomes only 17.5 after applying foreign tax credits.br br The takeaway:br The goal isn’t to avoid taxes—it’s to build stable, dollar-denominated income that’s worth taxing.


User: raveum

Views: 1

Uploaded: 2025-12-03

Duration: 07:33