Taxation
When foreigners buy property in the USA they are subject to USA taxation and receive the same deductions Americans do if they begin and file report correctly. That is why choosing a certified public accountant that has experience working with Foreign investors is important. This is why we recommend Cindy Buie. Cindy has done over 40,000 foreigner’s tax returns and assists them to begin and stay in compliance of tax reporting purposes. Cindy drew up a simple example for foreigner’s based on buying one house and example based on buying ten houses(see below). For specific questions and answers contact Cindy at +1-404-835-1914 or email her cindy.buie@aghllc.com
| The following are based on 2010 tax rates and exemption amounts, and is for Nonresident’s of the US that do not have a Green Card. | |||||
| Single Home | 10 Homes | ||||
| Residential Home | 80,000.00 | 800,000.00 | |||
| Land | 20,000.00 | 200,000.00 | |||
| Total Purchase Price | 100,000.00 | 1,000,000.00 | |||
| Annual Rent Income | 14,400.00 | 144,000.00 | |||
| Real Estate Taxes | 2,000.00 | 20,000.00 | |||
| Insurance | 600.00 | 6,000.00 | |||
| Management | 1,440.00 | 14,400.00 | |||
| Total Cash Expenses | 4,040.00 | 40,400.00 | |||
| Net Cash Proceeds | 10,360.00 | 103,600.00 | |||
| Depreciation | 2,962.96 | 29,629.63 | |||
| Total Expenses | 7,002.96 | 70,029.63 | |||
| Net Income | 7,397.04 | 73,970.37 | |||
| Exemption | 3,650.00 | 3,650.00 | |||
| Taxable Income | 3,747.04 | 70,320.37 | |||
| Federal Tax | 373.00 | 13,813.00 | |||
| Georgia Tax | 224.82 | 4,219.22 | |||
| Total Tax | 597.82 | 18,032.22 | |||
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