Hey everyone, looking to invest in my first OOS property...I looked up tax history and it says the home has (or had at least in 2020) a homestead exemption - my general understanding of homesteads is that tax payments are reduced by a certain amount for a certain period of time...can someone shed more light for me?

Selling costs are a whole different ball game because you have brokers fees and transfer tax (over $1,000,000 purchase price you'll also have a "mansion tax" payable by the buyer, but not under that threshold).

The loophole is that most taxpayers redeem within the first few months, with a return of 5%.  

The standard that must be met is that the intent of the tax payer for both property sold and the property purchased must be to "...hold for productive use in Business, for trade, or for investment...".  

@Robin Ahmed, Because the LLCs are the tax paying entities, they will be the ones performing the 1031 exchanges.  

It wouldn't affect your gain but it would also affect any transfer tax payable by you.

So, Investor LLC would be the sole member of all of uour property owner LLCs, which is actually beneficial for a number of other reasons, but the property specific LLCs will be considered disregarded entities for tax purposes, so you still only have one taxpayer to worry about.

Since they are not working in the U.S. they will not need to have either a SSN or an ITIN (Individual Taxpayer Identification Number)."

You can look up the OOR on your county tax payment or assessor website and send a letter saying you are interested in purchasing the property.  

Bryan Hancock the original question was very much directed at determining which would result in the greater tax payments.