Do foreign investors get double-taxed when earning income from U.S. real estate? This video breaks down the truth about U.S. taxes for global investors—including fractional ownership, withholding tax, DTAAs, and deductions.
⭐ What You’ll Learn:
Why paying tax is NOT a penalty but proof of a real, regulated investment
The difference between fractional ownership vs. REITs
How DTAA (Double Taxation Avoidance Agreements) prevent double taxation
The two-stage process: Stage 1: US taxes rental income at source (20–30% withholding) Stage 2: Your home country gives you Foreign Tax Credit
The core principle: “You report twice, but you pay once.”
How deductions like maintenance, mortgage interest & depreciation lower your effective US tax
Smart structuring using a US LLC
How platforms automate 1099/K-1 forms
Why advanced investors use a 1031 exchange to defer capital gains
📌 Example Covered in Video:
On a $10,000 investment earning 7% ($700 income), the global tax burden becomes only 17.5% after applying foreign tax credits.
The takeaway: The goal isn’t to avoid taxes—it’s to build stable, dollar-denominated income that’s worth taxing.
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