@Jim DahleIt depends on how you define "debt fund".If you're talking about a syndication that is in the trade or business of investing in debt, generally there will be no difference as the interest will be considered ordinary business income and not interest income.If you're talking about investing in straight debt and you are not in the trade or business of originating or buying and selling loans, there is no simple answer and we're now getting into the complex area of how each state decides to source taxable interest income and capital gains....

Talk to an American C.P.A. that does cross-boarder taxes or your local Chartered Accountant. 

Even the American Institute of CPAs (AICPA) and the Journal of Accountancy recommend doing cost segregation studies.

Americans are facing a long list of tax changes for the 2022 tax year, and smart taxpayers will start planning for them now.

@Sam Tright actually notes are taxed differently that ordinary income you do not pay SS tax on interest.

Thus, the Bureau regrettably remains unaccountable to the American people.”Hensarling said his committee had received numerous complaints about the agency’s new mortgage regulations.

Unfortunately, unless you're willing to hold 12 months, you're going to be on the hook for ordinary income tax.

The 180th day is not extended.Some other 1031 exchange intermediaries hold the same opinion:Equity Advantage https://www.1031exchange.com/i...Greenberg Glusker https://www.greenbergglusker.c...However, some other companies are saying the oppositeFirst American Exchange Company https://www.firstexchange.com/...Asset Preservation, Inc. https://apiexchange.com/disast...Affected Taxpayers: An “Affected Taxpayer” includes individuals who live, and businesses whose principal place of business is located in, the Covered Disaster Area.

Purchase price: $115,000 Capital partner securing a relocation residence for a disabled American veteran and spouse.

Or even should I just find an American friend an co-sign?