Posted by Brent_IL on September 16, 2003 at 01:06:48:
I haven’t kept current with the tax laws for a few years, but you may want to search the IRS website.
Overseas investors may be a “privileged” class whose money the Fed wants to attract. There is a difference between passive investments and active business. You might look into his being the money man and receiving an equity kicker in addition to interest. Most of the applicable laws that were written were designed to prevent US citizens from evading taxes. As a legitimate businessman of another country, your brother-in-law should not be unduly penalized.
This is a legal checklist-type investment. Check this out yourself and then consult with a good tax lawyer. Fees are cheap compared to a bunch of unexpected taxes.
I have been reading and learning here for a while now. This is absolutely the best source of info I have found on the web. I don’t recall seeing this topic tho, one of you can offer some advice. My wife, who is Austrian, has been a real estate agent for about 10 years. Her brother is a successful businessman and has inquired several times about real estate investing here in the US. I’m curious about getting the funding from him to the US without having to pay excessive taxes. Have any of you dealt with this type of financing before? Or would you advise not to get into this situation? Thanks in advance for any responses.