Open Forum

Hi All!

I wanted to share this information with all our beloved Real Estate Agents, if you are managing rental properties for foreign individuals without a U.S. tax ID, just like with FIRPTA, you, THE REALTOR is the withholding agent, meaning is in YOUR best interest to send 30% of the collected gross rent (without taking into account any expenses) and remit the money to the IRS on behalf of the owner of the property, it is vital that you advise the owner to comply with the fiscal rules so YOU real estate agent managing rental properties do not suffer the consequences, below is a letter sent to an agent here in TX who have collected rent for her a few clients for over 3 years and she did not advice them to file a return, the IRS is now making her responsible for over $24,000.00, we are now trying to convince her clients to file 3 years of U.S. tax returns so she can be forgiven this debt.

A professional, licensed and experienced tax firm can work on a strategy and make the appropriate elections to avoid having to send 30% of the rent and specially having the realtor liable for the possible tax owe by a foreign owner of real estate property. 

Very interesting, and it applies to property management companies too!

 

Arthur Schwartz

Actuary

Actuarial Services / Financial Solvency Division

Louisiana Department of Insurance

1702 N. Third St (70802)

P. O. Box 94214, Baton Rouge, LA 70804-9214

P:225-342-7639

[email protected] | https://ldi.la.gov

 

 

CONFIDENTIALITY NOTICE: This message and any attachments are intended only for the use of the addressee. The message may contain confidential, proprietary, privileged, and/or private information exempt from disclosure under federal and/or state law. If the reader of the message is not the intended recipient or an authorized representative of the intended recipient, you are hereby notified that any disclosure, reproduction, distribution, or other use of this message or any attachments is prohibited. If you are not the addressee, please promptly delete this message and notify the sender of the delivery error by reply e-mail.

 

 

Hi All!

I wanted to share this information with all our beloved Real Estate Agents, if you are managing rental properties for foreign individuals without a U.S. tax ID, just like with FIRPTA, you, THE REALTOR is the withholding agent, meaning is in YOUR best interest to send 30% of the collected gross rent (without taking into account any expenses) and remit the money to the IRS on behalf of the owner of the property, it is vital that you advise the owner to comply with the fiscal rules so YOU real estate agent managing rental properties do not suffer the consequences, below is a letter sent to an agent here in TX who have collected rent for her a few clients for over 3 years and she did not advice them to file a return, the IRS is now making her responsible for over $24,000.00, we are now trying to convince her clients to file 3 years of U.S. tax returns so she can be forgiven this debt.

A professional, licensed and experienced tax firm can work on a strategy and make the appropriate elections to avoid having to send 30% of the rent and specially having the realtor liable for the possible tax owe by a foreign owner of real estate property. 

Arthur;

Yes, property managing companies or real estate agents working with foreign investors/individuals, it is important to let the foreign investors know that they also have a filing requirement while receiving rental income in the U.S. or to retain 30% of the gross income and send it to Treasury as a deposit, just like FIRPTA, same concept.

Very interesting, and it applies to property management companies too!

 

Arthur Schwartz

Actuary

Actuarial Services / Financial Solvency Division

Louisiana Department of Insurance

1702 N. Third St (70802)

P. O. Box 94214, Baton Rouge, LA 70804-9214

P:225-342-7639

[email protected] | https://ldi.la.gov

 

 

CONFIDENTIALITY NOTICE: This message and any attachments are intended only for the use of the addressee. The message may contain confidential, proprietary, privileged, and/or private information exempt from disclosure under federal and/or state law. If the reader of the message is not the intended recipient or an authorized representative of the intended recipient, you are hereby notified that any disclosure, reproduction, distribution, or other use of this message or any attachments is prohibited. If you are not the addressee, please promptly delete this message and notify the sender of the delivery error by reply e-mail.

 

 

Hi All!

I wanted to share this information with all our beloved Real Estate Agents, if you are managing rental properties for foreign individuals without a U.S. tax ID, just like with FIRPTA, you, THE REALTOR is the withholding agent, meaning is in YOUR best interest to send 30% of the collected gross rent (without taking into account any expenses) and remit the money to the IRS on behalf of the owner of the property, it is vital that you advise the owner to comply with the fiscal rules so YOU real estate agent managing rental properties do not suffer the consequences, below is a letter sent to an agent here in TX who have collected rent for her a few clients for over 3 years and she did not advice them to file a return, the IRS is now making her responsible for over $24,000.00, we are now trying to convince her clients to file 3 years of U.S. tax returns so she can be forgiven this debt.

A professional, licensed and experienced tax firm can work on a strategy and make the appropriate elections to avoid having to send 30% of the rent and specially having the realtor liable for the possible tax owe by a foreign owner of real estate property. 

Does this apply if the check is payable to the foreign entity and the manager receives it and forwards along but without depositing or issuing a disbursement?

Arthur;

Yes, property managing companies or real estate agents working with foreign investors/individuals, it is important to let the foreign investors know that they also have a filing requirement while receiving rental income in the U.S. or to retain 30% of the gross income and send it to Treasury as a deposit, just like FIRPTA, same concept.

Very interesting, and it applies to property management companies too!

 

Arthur Schwartz

Actuary

Actuarial Services / Financial Solvency Division

Louisiana Department of Insurance

1702 N. Third St (70802)

P. O. Box 94214, Baton Rouge, LA 70804-9214

P:225-342-7639

[email protected] | https://ldi.la.gov

 

 

CONFIDENTIALITY NOTICE: This message and any attachments are intended only for the use of the addressee. The message may contain confidential, proprietary, privileged, and/or private information exempt from disclosure under federal and/or state law. If the reader of the message is not the intended recipient or an authorized representative of the intended recipient, you are hereby notified that any disclosure, reproduction, distribution, or other use of this message or any attachments is prohibited. If you are not the addressee, please promptly delete this message and notify the sender of the delivery error by reply e-mail.

 

 

Hi All!

I wanted to share this information with all our beloved Real Estate Agents, if you are managing rental properties for foreign individuals without a U.S. tax ID, just like with FIRPTA, you, THE REALTOR is the withholding agent, meaning is in YOUR best interest to send 30% of the collected gross rent (without taking into account any expenses) and remit the money to the IRS on behalf of the owner of the property, it is vital that you advise the owner to comply with the fiscal rules so YOU real estate agent managing rental properties do not suffer the consequences, below is a letter sent to an agent here in TX who have collected rent for her a few clients for over 3 years and she did not advice them to file a return, the IRS is now making her responsible for over $24,000.00, we are now trying to convince her clients to file 3 years of U.S. tax returns so she can be forgiven this debt.

A professional, licensed and experienced tax firm can work on a strategy and make the appropriate elections to avoid having to send 30% of the rent and specially having the realtor liable for the possible tax owe by a foreign owner of real estate property. 

Hi All!

I wanted to share this information with all our beloved Real Estate Agents, if you are managing rental properties for foreign individuals without a U.S. tax ID, just like with FIRPTA, you, THE REALTOR is the withholding agent, meaning is in YOUR best interest to send 30% of the collected gross rent (without taking into account any expenses) and remit the money to the IRS on behalf of the owner of the property, it is vital that you advise the owner to comply with the fiscal rules so YOU real estate agent managing rental properties do not suffer the consequences, below is a letter sent to an agent here in TX who have collected rent for her a few clients for over 3 years and she did not advice them to file a return, the IRS is now making her responsible for over $24,000.00, we are now trying to convince her clients to file 3 years of U.S. tax returns so she can be forgiven this debt.

A professional, licensed and experienced tax firm can work on a strategy and make the appropriate elections to avoid having to send 30% of the rent and specially having the realtor liable for the possible tax owe by a foreign owner of real estate property. 

Hi All!

I wanted to share this information with all our beloved Real Estate Agents, if you are managing rental properties for foreign individuals without a U.S. tax ID, just like with FIRPTA, you, THE REALTOR is the withholding agent, meaning is in YOUR best interest to send 30% of the collected gross rent (without taking into account any expenses) and remit the money to the IRS on behalf of the owner of the property, it is vital that you advise the owner to comply with the fiscal rules so YOU real estate agent managing rental properties do not suffer the consequences, below is a letter sent to an agent here in TX who have collected rent for her a few clients for over 3 years and she did not advice them to file a return, the IRS is now making her responsible for over $24,000.00, we are now trying to convince her clients to file 3 years of U.S. tax returns so she can be forgiven this debt.

A professional, licensed and experienced tax firm can work on a strategy and make the appropriate elections to avoid having to send 30% of the rent and specially having the realtor liable for the possible tax owe by a foreign owner of real estate property. 

Hi All!

I wanted to share this information with all our beloved Real Estate Agents, if you are managing rental properties for foreign individuals without a U.S. tax ID, just like with FIRPTA, you, THE REALTOR is the withholding agent, meaning is in YOUR best interest to send 30% of the collected gross rent (without taking into account any expenses) and remit the money to the IRS on behalf of the owner of the property, it is vital that you advise the owner to comply with the fiscal rules so YOU real estate agent managing rental properties do not suffer the consequences, below is a letter sent to an agent here in TX who have collected rent for her a few clients for over 3 years and she did not advice them to file a return, the IRS is now making her responsible for over $24,000.00, we are now trying to convince her clients to file 3 years of U.S. tax returns so she can be forgiven this debt.

A professional, licensed and experienced tax firm can work on a strategy and make the appropriate elections to avoid having to send 30% of the rent and specially having the realtor liable for the possible tax owe by a foreign owner of real estate property. 

Hi All!

I wanted to share this information with all our beloved Real Estate Agents, if you are managing rental properties for foreign individuals without a U.S. tax ID, just like with FIRPTA, you, THE REALTOR is the withholding agent, meaning is in YOUR best interest to send 30% of the collected gross rent (without taking into account any expenses) and remit the money to the IRS on behalf of the owner of the property, it is vital that you advise the owner to comply with the fiscal rules so YOU real estate agent managing rental properties do not suffer the consequences, below is a letter sent to an agent here in TX who have collected rent for her a few clients for over 3 years and she did not advice them to file a return, the IRS is now making her responsible for over $24,000.00, we are now trying to convince her clients to file 3 years of U.S. tax returns so she can be forgiven this debt.

A professional, licensed and experienced tax firm can work on a strategy and make the appropriate elections to avoid having to send 30% of the rent and specially having the realtor liable for the possible tax owe by a foreign owner of real estate property.