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In today's age of globalization and foreign currency liberalization, Israeli residents can invest in real property in the United States. Investing in residential / commercial real estate in the U.S., renting out properties, and selling properties, result in U.S. income tax implications that the investor has to consider. In most cases income from rents will not be taxable since it is being reduced by mortgage interest expense, property tax expense, other operating expenses, and depreciation, but a year end tax report will have to be filed. Gains from the sale of U.S. real property are taxed in the U.S.. Losses can be deducted from other gains and income. It is important to consult a U.S. Income Tax expert who is familiar with U.S. International taxation when investing in the U.S., while holding properties, and when selling properties. |