# U.S. tax resident?



## Omater (Nov 26, 2011)

I hope it is okay to post this link, but I don't know what to call this tax issue or if it has become a tax requirement yet.

Foreign Investors in U.S. Real Estate: Beware! | Preserving Your Privacy and Wealth

I would like to know if there is a code published online that will back up what he is stating from paragraph 6 To the end of the article, or if anyone happens to know about this tax.

Thanks!


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## xabiaxica (Jun 23, 2009)

Omater said:


> I hope it is okay to post this link, but I don't know what to call this tax issue or if it has become a tax requirement yet.
> 
> Foreign Investors in U.S. Real Estate: Beware! | Preserving Your Privacy and Wealth
> 
> ...


you can certainly buy property in the US without living in it - at all, ever - which the article seems to suggest you can't

so yes, you can buy property without becoming 'tax resident', in that sense


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## Omater (Nov 26, 2011)

Yes, but what about those of us who want to live on the property for 6 months? The article mentions tax liability of worldly income after 122 days and that the IRS will also expect inheritance tax if we die. I would like to know if this is true and/or if this is something new?
Thanks!


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## RødGrød (Oct 8, 2011)

Omater said:


> I hope it is okay to post this link, but I don't know what to call this tax issue or if it has become a tax requirement yet.
> 
> Foreign Investors in U.S. Real Estate: Beware! | Preserving Your Privacy and Wealth
> 
> ...


As far as I can tell, this bill would _allow_ foreigners to obtain a residency visa if they spend more than 500,000 on a US property, thus making them subject to the US tax regime. However, it does not _force_ them to become residents.


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## xabiaxica (Jun 23, 2009)

Omater said:


> Yes, but what about those of us who want to live on the property for 6 months? The article mentions tax liability of worldly income after 122 days and that the IRS will also expect inheritance tax if we die. I would like to know if this is true and/or if this is something new?
> Thanks!


I don't think it's new 

we own property but don't live in it, so I'm coming from the opposite direction as it were 

but yes - spending more than a certain number of days in a year (183?) - then yes, you would be liable to file tax returns - which doesn't necessarily mean paying tax twice, though


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## xabiaxica (Jun 23, 2009)

RødGrød said:


> As far as I can tell, this bill would _allow_ foreigners to obtain a residency visa if they spend more than 500,000 on a US property, thus making them subject to the US tax regime. However, it does not _force_ them to become residents.


yes, that's how I understood it too, but 'residency' & 'tax residency' are seperate issues


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## Bevdeforges (Nov 16, 2007)

First of all, consider the source. The article you've linked to is prepared by a "wealth preservation" company looking to sell you its services.

The other big caveat in the article is this: 



> The money coming into U.S. real estate *is likely to* increase further* if a bill *recently introduced by Senators Charles Schumer (D-NY) and Mike Lee (R-UT)* becomes law*.


In other words, he's drumming up business based on proposed legislation that hasn't passed even one house of Congress yet.

Your best source of information about the tax obligations of "aliens" (i.e. foreigners) in the US is Publication 519: http://www.irs.gov/pub/irs-pdf/p519.pdf
Cheers,
Bev


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## Omater (Nov 26, 2011)

Bevdeforges said:


> In other words, he's drumming up business based on proposed legislation that hasn't passed even one house of Congress yet.
> 
> Your best source of information about the tax obligations of "aliens" (i.e. foreigners) in the US is Publication 519: http://www.irs.gov/pub/irs-pdf/p519.pdf
> Cheers,
> Bev


Thank you Bev! I didn't realize that this wasn't through congress yet, but I did know that the source link was trying to scare up some business. I saw a different link about the subject months ago on this site but have not been able to find it. This was the closest I could find to the subject. 

I do understand that a 6 month stay is allowed, but is that coming up for change? I guess I am slow to figure it out, and there is math involved on Publication 519 :confused2: So there is no fear (yet) about staying in the US past 122 days and having to file an income tax return on worldly income as a NRA snowbird?


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## SteveOdem (Jan 23, 2012)

Congress has thousands of bills every year and, maybe 1-2%, on average, become law, after lots of amendments. There are over 60 income tax treaties as well as various estate treaties and the variables go on and on.

Don't live your life around what a couple of congress-peeps propose - there are 533 others, there, too.


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