All Forum Posts by: Farhad Shir

Not sure if buyers will resist to sign affidavit even though they will live in property.

Thanks Shannon

Shannon and Chad,

I read Changes to FIRPTA Withholding Requirements dated Feb 2016. The way I understand is contradictory to your saying but I might be wrong let me explain the way I understand in an example. please correct me if I am wrong:

Assume I buy investing property on May 2016 with 50k cash for flip. I will rehab property and will sell property on Sep 2016 for 100k cash. I will not live in property during rehab period. New buyer will buy property as main residency.

The way I understand FIRPTA : Escrow company will withhold 15% of sell price of 100k which is 15k. at the end of closing on Sep 2016 I will receive 85k instead of 100k. for sake of argument I am not including other closing cost items here. I might be wrong here because FIRTA talks about buyer while I am considered seller during closing on Sep 2016?

The way you explained : Since new buyer is planning to live in property and price is less than 300k, escrow won't hold anything and I will get 100k during closing on Sep 2016

Any clarification be appreciated.

Hi, I am Canadian investor in US real estate in Indiana State. My goal is to flip property under individual name. I am seeking advise of accountant familiar with foreign income tax in US real estate and have following questions:

Which expenses I can claim for income tax during flipping(for instance whether international travel cost and accommodation cost during acquire, rehab, and selling property can be claimed )

How to reduce income tax during closing ( instead of paying 15% of gross sale price I would like to pay actual tax liability which is by far less )

Apply for tax certificate or affidavit to reduce tax liability to actual amount

Hi, I am Canadian investor in US real estate in Indiana State. My goal is to flip property under individual name. I am seeking  advise of accountant familiar with foreign income tax in US real estate and have following questions:

Which expenses I can claim for income tax during flipping(for instance whether international travel cost and accommodation cost  during acquire, rehab, and selling property can be claimed )

How to reduce income tax during closing ( instead of paying 15% of gross sale price I would like to pay actual tax liability which is by far less )

Apply for tax certificate or affidavit to reduce tax liability to actual amount

Thanks Shannon,

I should find an accountant to discuss this further

Thanks Shannon and Chad for information. Do you know how much would be Indiana state tax in my case? I will aquire property under my own name

Sell price will be less than 300k and my goal is to sell to home occupant do you mean in this case Escrow will not withhold anything for foreign tax?

I heard of withholding certificate maybe this is something that I should apply to reduce tax liabilities

Do you know if I can claim all cost associated with business trip I will make to aquire hold and sell property for tax purpose? Again I will run this business under own name

Thanks

Hi I am Canadian investor in US real estate . Does anyone have experience with foreign tax withholding when foreigner flip and sell investing property in United States? I heard title company or escrow companies depending on the states your property is located will hold 10-15% of gross sale price. In my calculation US tax associated with my net income after flip will be far less than 10-15% of gross sale. I am not sure if I can file tax return right away when property is sold to pay exact tax amount and have access to my capital for business. I heard I can apply for something but quite not sure how it works.

Also I would like to see if this is only withholding when foreigner sell investing property or there are other things a foreigner should be aware of when flipping property?

 Any thoughts will be helpful

Hi Jeremy,

I am international investor currently working with one local realtor in Fort Wayne with hope to get investing property for flip. Would you be able to assist me find one trusted local GC that do the repair/rehab job for me? I might also need  a project manager for rehab if you can assist me?

Thanks,

Farhad

Hi Kortez, I am looking for flip properties.

Hi I am looking for flip properties. Please let me know