Richard S. Lehman tax techniques for individual foreign investors in U.S. real estate
Two techniques may be used by the foreign investor to insure that the individual foreign investor in United States real estate is paying the least amount of taxes with the most legal protections.
The first technique is for an individual investor to be acting through a partnership, in which the foreign investor invests in their individual name.
A second technique permits the foreign investor to open a United States corporation and liquidate that corporation after the corporation has sold all of its United States real estate assets. The payment in liquidation will not be taxed a second time even though the corporation that is being liquidated is distributing its funds to the investor.