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Legal and Tax Advisory
Expert legal and tax guidance for foreign investors in US real estate. LLC formation, FIRPTA compliance, 1031 exchanges, and cross-border tax planning.
Protect Your Investment With Proper Legal Structure
US tax law is among the most complex in the world, and the implications for foreign real estate investors are particularly significant. FIRPTA withholding, estate tax exposure on US-sited assets, FBAR reporting requirements, and state-level tax obligations can all substantially impact your net returns if not properly addressed from the outset.
Our Legal and Tax Advisory service connects you with a curated network of US-licensed attorneys, CPAs, and international tax specialists who focus exclusively on real estate and cross-border investment. We do not provide generic advice. Every engagement is tailored to your specific nationality, investment structure, existing treaty benefits, and long-term objectives.
Since the right structure must be established before you purchase, we recommend engaging our legal advisory team at the very beginning of your investment process. Retroactively restructuring existing holdings is possible but significantly more complex and expensive than getting it right from day one.
LLC Formation and Structuring
We form LLCs in the most advantageous jurisdictions for your situation. Delaware LLCs offer strong privacy protections and flexible operating agreements. Wyoming LLCs provide exceptional charging order protection. Florida LLCs simplify management for Miami-based investments.
Series LLCs allow multi-property investors to hold each asset in a separate cell, providing liability isolation while minimizing administrative costs. We advise on single-member vs. multi-member structures, manager-managed vs. member-managed arrangements, and the optimal operating agreement provisions for your situation.
FIRPTA Compliance and Mitigation
FIRPTA (Foreign Investment in Real Property Tax Act) requires buyers to withhold 15% of the gross sales price when purchasing from a foreign seller. For a $1,000,000 property, this means $150,000 withheld at closing — a significant cash flow issue even if the actual tax liability is lower.
Through proper entity structuring, we can minimize or eliminate FIRPTA exposure. A domestic LLC treated as a US corporation for tax purposes may allow you to sell without FIRPTA withholding. We analyze each client situation individually and implement the most effective structure.
1031 Exchange Facilitation
Section 1031 of the Internal Revenue Code allows investors to defer capital gains taxes by reinvesting sale proceeds into a like-kind property. For investors who have held property for several years and seen significant appreciation, this can save hundreds of thousands of dollars in deferred tax liability.
We coordinate the entire 1031 exchange process: identifying a qualified intermediary, ensuring strict timeline compliance (45-day identification period, 180-day closing period), and structuring the replacement property acquisition for maximum tax efficiency.
Annual Tax Filing and Compliance
Foreign investors with US rental income must file US federal and state income tax returns annually. Our CPA network prepares all required filings: Form 1040NR (or 1120 for corporate structures), Schedule E for rental income, FBAR (FinCEN Form 114) for foreign bank accounts, and Form 8938 (FATCA) where applicable.
We also identify all available deductions specific to real estate investment: depreciation, mortgage interest, property taxes, management fees, repairs, and travel expenses. Many investors are pleasantly surprised to discover their taxable income is substantially lower than their gross rental receipts.
Schedule a Free Legal Consultation
45-minute call with a US real estate attorney. Discuss your structure, exposure, and optimal setup strategy.
Ready to Get Started?
Contact our team today for a free consultation and discover how we can help you achieve your US real estate investment goals.