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  1. #11
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    Default

    Never buy in your own name in the USA. Always use an LLC. Double taxation issues otherwise if you are a kiwi.

  2. #12

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    Quote Originally Posted by [email protected] View Post
    Never buy in your own name in the USA. Always use an LLC. Double taxation issues otherwise if you are a kiwi.


    Dean,

    Whoever told you that is completely wrong. An LLC, like an individual, is always responsible for its taxes. The caveat is that you only need to pay your taxes once – you just need to decide in which country. Or pay them in both – if you choose. You only pay tax on gain and therefore, in the current property market (in both USA and NZ), you won’t paying much tax on either. However, the big difference in the USA is that you need to file a tax return regardless – even if you have zero income. Failure to do this may result in enforcement action by the IRS. If you setup a bank account in the USA and it yields interest – then up to a certain amount, you will need to report that yield to the IRS as well, even if the income is too low to be taxed.

    I suggest that if you don’t understand the basics of international tax law then keep your money safe at home. The USA is fairly straight forward when itcomes to property investment. However,if you don’t understand your legal obligations to City, County, State, and Federal government bodies -- you may find your real estate asset seized and resold. Also, you will still be responsible for the mortgage even if you no longer own the property.

    It is best to get proper legal advice before doing any business in any country. But, you need to seek the legal advice in the country you plan to business in. In other words: in NZ, get a NZ solicitor. In the USA, get a USA attorney who specializes in property.

    Like I said before, a foreign LLC is not recognized in the USA.

    A USA LLC (a very low level of incorporation depending on the State in which incorporated in) does not exempt you from taxes or any other of your legal obligations when doing business in the USA. Stop suggesting that it does.
    Last edited by fatfishandchipman; 11-06-2011 at 01:58 AM.

  3. #13
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    Default

    Just for clarity, don't buy property in the USA without an LLC.

  4. #14

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    Quote Originally Posted by [email protected] View Post
    Just for clarity, don't buy property in the USA without an LLC.


    … and that doesn’t have anything todo with camel’s original question.

    Regardless of whether you have an LLC or simply choose to use your own name, either will require an address inthe USA to get a bank account.

  5. #15

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    Dean,

    Do you actually have any money invested in the USA? Or are you justtrying to drum up some sucker-business for Matt Gilligan?


  6. #16
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    Jun 2005
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    auckland New Zealand
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    Matt Gilligan can't open US LLC's Fat, what are you on about?? I'm in America right now, buying in your own name is a great way to get sued man, don;t do it!!

  7. #17

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    Dean,

    An LLC can still be sued. It is an extremely low level of incorporation and is quite transparent. But it’s fine if you are using one. But it is not necessary. People can only sue you (LLC or not) if they are damaged. If you are an honest player then you have nothing to fear.

  8. #18
    Join Date
    Jun 2005
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    We must be speaking different languages. If you own a property in your own name in the USA you can be sued and you are personally liable. They could pursue you in your own country if they thought you had assets. If you own your rental in an LLC you can only be pursued for the available equity in the LLC. Tenants, tradesmen and a raft of other people could sue you at any time, this is after all America we are talking about.
    Nothing to do with honesty, slip and fall scams are a favourite over here in some cities. Many larger PM companies would have at least a law suit a month they deal with.

  9. #19

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    Quote Originally Posted by [email protected] View Post
    We must be speaking different languages. If you own a property in your own name in the USA you can be sued and you are personally liable. They could pursue you in your own country if they thought you had assets. If you own your rental in an LLC you can only be pursued for the available equity in the LLC. Tenants, tradesmen and a raft of other people could sue you at any time, this is after all America we are talking about.
    Nothing to do with honesty, slip and fall scams are a favourite over here in some cities. Many larger PM companies would have at least a law suit a month they deal with.


    Dean,

    A little knowledge is a dangerous thing. And you have a “little knowledge.”

    None of what you said is true. Popular myths purported by people who barely participate in civil society. Ridiculous nonsense is all you are spouting.

    Obviously, you’ve never heard of insurance – or are not buying it (or can't get it) on your properties. People can only sue you if you have money. While we have never met -- I know of you. And I know enough about you to know that you have nothing to worry about.


    However, if you believe these things to be true, and are sued, you would need a much higher corporate instrument to protect your personal self and personal property than a simple LLC.
    Last edited by fatfishandchipman; 14-06-2011 at 12:45 PM.

  10. #20
    Join Date
    Jun 2005
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    auckland New Zealand
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    you would need a much higher corporate instrument to protect your personal self and personal property than a simple LLC.
    Not in America, providing it is set up correctly in the right state.
    Insurance covers you up to a certain amount but lawyers name everybody in suits here. So you can't be personally named as long as you use LLC's to hold your assets.
    But you can argue with US asset protection attorneys if you like. I'd rather just make sure people are safe by telling them to ALWAYS use an LLC and do NOT buy in your own name in the USA, especially if you are a kiwi :-)


 

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