The world of taxation can be puzzling if you do not have the right person to handle it for your business. If you are an operator, chances are you have encountered some foreign investors who are interested in investing in US real estate. But, do you know how taxes are going to be imposed on them? Do you feel that it is a daunting task to navigate their taxes, thus, you end up closing the door for them? Or are you a foreign investor who is interested to invest in US real estate? If your answer is yes, then this episode is for you!
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Today, we speak to Kenneth Kastner, founder of a web-based firm serving global clients called Kastner Tax Solutions. Kenneth details how got into the business of helping foreign real estate investors with their US taxes. Kenneth also shares the key things a foreign investor needs to know if he wants to invest in the US. He elaborates on how to avoid double taxation, as well as the need for operators to withhold taxes for their foreign investors. Listen now and learn how you can navigate the US tax world, may you be an operator or a foreign investor!
Key Points From This Episode:
- Kenneth shares how he got into the business of helping foreign real estate investors with their US taxes.
- What do foreign investors need to know if they want to invest in the US?
- Can foreign real estate investors avoid double taxation?
- Kenneth talks about how foreign investors can obtain ETIN or LLC.
- How foreign investors can open a bank account in the US?
- Kenneth details what foreign investors need in terms of structure to be able to invest in real estate in the US.
- What operators need to know when foreign investors are interested to invest in the US?
- What should operators be considering in terms of withholding taxes for foreign investors?
- Kenneth shares the tax implications for foreign investors.
- The daily habits that helped Kenneth achieve success.
- Kenneth’s best source in meeting new investors right now.
- The number one thing that contributed to his success.
- How does Kenneth like to give back?
“Bottomline, there’s a lot of planning before they invest and there’s a lot of homework that they need to do. So, I try to keep that pretty simple and straightforward by asking them a few questions beforehand.” [0:03:46]
“Some countries don’t have a tax treaty with the US. So, if there is no tax treaty, it’s a little more complicated and there might be double taxation in certain scenarios.” [0:04:53]
“What the operator is gonna have to understand, although they’re also gonna have their own accountants and tax professionals (that) can help them with that, they have to withhold taxes for the foreign investors as opposed to US people that don’t need withholding.” [0:12:28]
“I just want one more sentence about that withholding, like I said, the IRS is gonna be coming after the Americans, not after the foreign people.” [0:16:50]
Links Mentioned in Today’s Episode:
About Kenneth Kastner
Kenneth grew up in Brooklyn, NY and currently lives in Israel. During the last decade, he became hyper-focused on helping foreign real estate investors with their US taxes and founded Kastner Tax Solutions, a web-based firm serving global clients with a smile. He is a tax partner and director of the US tax department at VBIR in Israel.
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