All Forum Posts by: Jonathan B.

@Jonathan B.

I think its great that you try to manage your assets as detail as possible if you have time. I think you are doing great. 

A lot of real estate owners do whatever and later they have to do so many things at once.

Of course it is good enough to have one fixed asset and accumulated depreciation but it is always better to separately keep track of asset to monitor and analyze later. Some property management softwares allow that.

It may be a bothersome to keep entering depreciation expense but in quickbooks, you can set up a recurring depreciation expense so it should help you out.

No, too small to see. However , QB has a built in COA for realtors,pm,and general bookkeeping. If you use the built in accounts, at tax time, your accountant can just import the file, do you year end close out and shoot the file back to you, saves time and accounting fees

@Jonathan B. The portfolio income tax exemption allows non-US investors to lend to US borrowers and not pay US tax on or file US tax returns as a result of the associated interest income.

That said, there are a lot of rules and pitfalls to be aware of.

This excerpt from a website (https://www.jdsupra.com/legalnews/the-portfolio-in...) sums it up pretty well:

...as a general matter, if (i) a non-U.S. lender (which is unrelated to the U.S. borrower, is not a bank, is not a CFC, and is not engaged in the conduct of a U.S. trade or business), (ii) lends money to a U.S. borrower pursuant to (iii) a registered debt instrument, (iv) which pays a fixed rate of interest, and (v) the non-U.S. lender provides adequate documentation as to its non-U.S. status, then the interest payable pursuant to the loan should qualify for the portfolio interest exemption and, in such a case, no U.S. tax would arise with respect to such interest.

I would recommend consulting with an attorney and CPA familiar with US/foreign tax laws to ensure all of the correct steps are being taken. 

@Brian Lasserre, that would be the easy thing to do, but I know I have a great network overseas that are willing to either lend me money and/or invest with me in the US. Also, I can leverage properties I have there and get a 30 year fixed loan at ~2% interest rate. 

Getting easy access to cheap capital is not easy. I am sure they would not be the first foreigners to invest in the US, I just want to understand how can they do so by either minimizing (legally) their tax implications in the US or avoiding double taxation.