Well, unlike Australia, the tax year in America is based on the calendar year. While our financial year runs from July to June, theirs runs from January to December. That means, some of these forms need to be in pretty shortly (April).
Anyway, there were a number of forms that needed to be sent to various bodies around the States - four envelopes are making their way around the world as we speak:
Envelope 1 contains:
Form 1065: US Return of Partnership Income
Form 8825: Rental Real Estate Income and Expenses of a Partnership or an S Corporation
Schedule B-1: Information on Partners Owning 50% or More of the Partnership
Schedule K-1: Partner's Share of Income, Deductions, Credits, etc.
Form 4562: Depreciation and Amortization
Envelope 2 contains:
Form 8804: Tax Return for Partnership Withholding Tax (Section 1446)
Form 8805: Foreign Partner's Information Statement of Section 1446 Withholding Tax
Envelopes 3 & 4 each contain:
Form W-7: Application for IRS Individual Taxpayer Identification Number
Certified copy of passport
Form 1040NR: US Non-resident Alien Income Tax Return
Form 8805: Foreign Partner's Information Statement of Section 1446 Withholding Tax
The moral of this story: get yourself a decent tax agent in the US - it's way too complicated to try and figure out on your own.
Jane im about to bombard your site with alot of visitors from Somersoft. Wanted to ask your permission first before linking. You have a great account of how to invest in the US.
ReplyDeleteaaah, very helpful Jane. That will be handy to know. Hope it is all going well for you.
ReplyDeleteA quick update on my early posts here. Managed to find a US based lender who will loan to Foreign Nationals at the usual rate (so around 4.8% fixed over 30 years). Only caveat is you need a US Bank account (check, got that) and a min of 30% deposit (in USD - yep got that too). 3 cheers for the AUD @ 1.04USD and OzForex I say).
So all good. I have US based accountant and RE Broker helping us look at places. Nearly made an offer last week, but the place was already under offer from another buyer. Darn. That said there are hundred of other options so we will find another.
There is a whole stack of gotchas though. Some places have rules on what % can be tenants vs owners, HOA fees need to be looked at, special assessment fees really need to be looked at. Some places don't allow tenants at all. The mortgage folks wont loan if x% of the community or estate is in default or behind in HOA payments which can be tricky to find out.
Aaaah, I really glad to have some local (US Based RE Broker) to help us out with this stuff.
Hopefully will get something settled shortly. All good so far. Will keep you posted.
Cheers
Darryl
Thanks Darryl & Reece - sorry I didn't see you comments earlier... Fine by me Reece!
ReplyDelete