We're getting into tax law now, but I'd assume as you would be domiciled in NZ, you'd pay tax on the US-earned income in NZ first, seeing as there's a double tax agreement with the US. Doesn't mean you don't have to declare it in the US. In fact, if rates are higher there you'd also probably have to top it up by the difference to the US.
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Originally posted by TheLiberalLeft View PostWe're getting into tax law now, but I'd assume as you would be domiciled in NZ, you'd pay tax on the US-earned income in NZ first, seeing as there's a double tax agreement with the US. Doesn't mean you don't have to declare it in the US. In fact, if rates are higher there you'd also probably have to top it up by the difference to the US.
I’m not sure what you’re saying. Are you one of Dean’s cohort’s? If so, the “double-tax” as you called it, only applies to people who are legally allowed to derive income from inside both countries and are actually deriving income from both countries i.e. just as a New Zealander or an Australian can do, but only between Australia and New Zealand. This is not a difficult concept to understand.
You need to get yourself an international tax attorney and some proper legal advice.Last edited by fatfishandchipman; 28-06-2011, 03:49 PM.
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Calm down, fatso. I'm no one's cohort. I was merely asking a question.
I know what the double-taxation agreement means. The question here is whether or not earning rent on a US-based property from an NZ-based entity is legal, and if it is, then the agreement would stand. You're saying it's not legal. That's fine.
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Have things changed? I just did a google search and this was hit #1:
Buying a home can be a long, complicated process. Our 13-step guide helps you navigate all the twists and turns along the way.
From 2006, but it seems to say you can.
I have no affiliation with that website. As I say, it was the 1st return from google.
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Great thread Donna
Dean Letfus has many hats and now he has his American one on.
I’ve been on his data base for many years, these are what he has tried to sell
as great investments to those lucky ones.
Sections in Fiji
Sections in Sponge Bay
Apartments on the gold cost
Storage sheds in Auckland
Now American houses, if you are going to do business with Mr Letfus please ask him
how his previous investment recommendations performed and if he received any form
of commission for selling them.www.focuspropertymanagement.co.nz
Property Management Tauranga & Bay of Plenty
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Originally posted by TheLiberalLeft View PostHave things changed? I just did a google search and this was hit #1:
Buying a home can be a long, complicated process. Our 13-step guide helps you navigate all the twists and turns along the way.
From 2006, but it seems to say you can.
I have no affiliation with that website. As I say, it was the 1st return from google.
Yeah, I suggest you get some real advice instead of something off a web-site advertising real-estate products.
The best summary I can come up with about doing dumb things through your own ignorance in the USA is the story of the Australian, who, legally living in the USA and paying taxes, but not a citizen made the mistake of voting in a Federal election. He thought he had to (because, as most New Zealanders who have lived in Australia know, everyone must vote in Australia. In fact, they fine you if you don’t). So anyway, this poor guy gets himself on the electoral role and votes. Next thing he knows he’s sentenced to 6 years in jail!
Ignorance of the law is not an adequate defense.Last edited by fatfishandchipman; 30-06-2011, 05:52 AM.
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Remove the chip for just a moment, fatty. Yes, I must be ignorant, for I am asking questions about the subject - for the simple reason I don't know the right answer. There's obviously a lot of confusion around it too, otherwise why would some say it's legal and others not?
I've shown a website, possibly not a great one, that says it's legal to do what I'm asking. So far you've shown agression and pomposity. Let's see your source.
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Well my eyes have been well and truly opened in this discussion - it's scary as I know there's lots of interest in these toxic deals.
cheers,
DonnaEmail Sign Up - New Discussions, Monthly Newsletter, About PropertyTalk
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Originally posted by TheLiberalLeft View PostRemove the chip for just a moment, fatty. Yes, I must be ignorant, for I am asking questions about the subject - for the simple reason I don't know the right answer. There's obviously a lot of confusion around it too, otherwise why would some say it's legal and others not?
I've shown a website, possibly not a great one, that says it's legal to do what I'm asking. So far you've shown agression and pomposity. Let's see your source.
You misunderstand. I’m not trying to offend you. So don’t take offense.
The statement: “Ignorance of the law is not an adequate defense,” is actually a common legal argument. Type it into a web search engine and you will see what I mean.Last edited by fatfishandchipman; 30-06-2011, 02:36 PM.
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Though, this argument of the law and taxes are just semantics. With the right advice and the right connections it can all be overcome just by jumping through a few legal hoops.
The reason I brought it up in the first place is because I do understand how it works and was interested to see if Dean, Kerry, and co. would explain it to my satisfaction.
But the underpinnings of their entire operation depend on these semantics – do they have them in place? So far they have not been forth coming.
What I would really like to see is their business plan.
If you guys like, you can PM me and we can take this discussion off the public forum.Last edited by fatfishandchipman; 30-06-2011, 02:37 PM.
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Those people investing sensibly in the US market will be laughing all the way to the bank when the recovery and boom part of the cycle returns.
The same here in NZ but look at the US numbers... the house we are using as an example is on the market for $25k, what are the yield numbers if it was bought for $20k?
Of coarse you have to do your due diligence. Does the house come attached with a higher subprime mortgage? are there tax liens attached to the property? Is it rentable? Is it in a flood zone?...Profiting from Property, not People
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Originally posted by DaveW View PostThose people investing sensibly in the US market will be laughing all the way to the bank when the recovery and boom part of the cycle returns.
The same here in NZ but look at the US numbers... the house we are using as an example is on the market for $25k, what are the yield numbers if it was bought for $20k?
Of coarse you have to do your due diligence. Does the house come attached with a higher subprime mortgage? are there tax liens attached to the property? Is it rentable? Is it in a flood zone?...
DaveW,
That is not a business plan.
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This is a great thread>
the question is : is USA property investment an opportunity, or is it a lame duck
I read about someone who googles a property and finds the property is worth 25k, then finds person who is selling the same property for more money. Logic will tell me that if you buy a property undervalued, renovated it you can then hold it or on sell it for a profit - there is nothing wrong with that.
I read about people who after going to the USA and spend their own money, but do not explain in detail how the US process works - Bugger!
I have spent my own money researching, and working out how this can work for me. And for the record I have purchased some US property personally to find out. I have not "Sold" to anyone else
Q - Is this a viable strategy?
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