Know Your Taxes Well If You Want to Sell Your House


This is an often overlooked factor, but when dealing with an international real estate investor the tax advantages of having a company setup in the United States and placing the property inside the company can be significant and can add great appeal to your offer as compared to that of any other seller.

All international real estate investors buy homes outside of their own land because they want to shelter some of their wealth from the uncertainties of their own local economy. That’s usually the basic reason, and to that you can add all the benefits of having a real estate property in the US, like having a positive cash flow from tenants, having a place to come for their holidays or simply having an asset that can appreciate in value over time and give a positive return.

They never buy with the intention of living in the house and seldom they buy with the idea of reselling it immediately for a profit, although we might see an increase of this latter approach. So creating an entity and placing the property into it and structuring the entity in the proper way so that they are protected from claims (asset protection) and they save on taxes is paramount.

It takes quite some work to know all the different nuances that go into the right entity selection and the proper tax management for an international buyer. If they had to do it themselves they would need to hire lawyers, CPA’s and paying a substantial amount of money, provided the found the right ones. The added value that you can add and that can play big in the value of your offer is for you to partner with an attorney and a CPA that have already done work with international buyers in your area and provide a package that you can sell or add as a bonus to your property.

You can make a decent profit from this activity only and the buyer on his own can save a fair amount in taxes, particularly if rehabs are needed or if he plan to rent the place long term. You will have a returning customer who will then refer other buyers to you. It takes some work to get this knowledge, but then you will be paid back many times over.

Roberto Mazzoni