TRAINING: Foreign Investors: What You Need to Know (VIDEO)

Foreign Investors: What You Need to Know

  • If you have an investor from overseas, they are subject to withholding tax of the price of the home when they sell.
  • Before buying or selling real estate, the overseas client will need to be aware of:
    • Need to obtain ITIN number (Tax ID Number)
    • Qualified accountant (can process the application based on what the tax liability is)
    • Client needs a passport verified (certified copy)
    • Client will need to repeat this process when they want to buy income property
    • Client will have to pay taxes on the income for the rent
    • ITIN numbers expire after 2 years if it hasn’t been active
    • Refer the client to legal/tax representative to decide on how to hold title 
      • Do not advise your client on how to hold title because that is legal advice you are not allowed to give.
    • When the client wants to open an irrevocable trust, they will need to speak w/ an attorney
  • Property Management- not permitted under United Real Estate Los Angeles
    • If the agent is “picking up the rent” then they are the “Property Managers”
    • If proper procedures are not in place, then the agent/ “Property Manager” can and will be held responsible for the taxes owed on the property that were supposed to be in escrow withholding
Did this answer your question? Thanks for the feedback There was a problem submitting your feedback. Please try again later.

Still need help? Contact Us Contact Us