All services U.S. real estate for foreign investors

U.S. tax planning, compliance and IRS representation for foreign real estate investors.

Before you buy, while you own and rent, and when you sell: one Enrolled Agent coordinates the federal tax side of your U.S. property, whether you hold it personally, through an LLC or through a corporation. In English and Spanish, fully remote.

Request a free consultation Message on WhatsApp Call (407) 684-2173

30-minute initial consultation, free and with no obligation

  • Enrolled Agent
  • Unlimited practice rights before the IRS
  • English and Spanish
  • Certified QuickBooks Online ProAdvisor
  • Clients nationwide
  • Fees agreed in writing
Situations we handle

When this service is needed

  1. 01

    Before you buy: choose the structure with the tax in view

    Owning personally, through a U.S. LLC, a U.S. corporation or a foreign corporation changes how rent and the sale are taxed and which returns are due each year.

    How we solve it: we compare the tax impact of each option before you buy. Tax analysis, not legal advice.

  2. 02

    While you own and rent: the person and the entity both file

    By default a nonresident pays 30% on gross rent; you can elect to be taxed on the net after expenses, and the election stays in effect for later years unless you revoke it. Who files depends on the structure: a single-member LLC is disregarded, so its owner reports the rent (Form 1040-NR, or Form 1120-F for a foreign corporation) and the LLC files a pro forma Form 1120 with Form 5472; a U.S. corporation files Form 1120; an LLC with two or more members files Form 1065 as a partnership.

    How we solve it: we file every return for you and your entity each year, keep your Form W-8ECI current with your property manager and, when a partnership has foreign partners, prepare its withholding forms (8804 and 8805).

  3. 03

    When you sell: FIRPTA and the final tax

    The buyer generally must withhold 15% of the amount realized under FIRPTA. That money is a prepayment, not the final tax: the final tax is figured on your U.S. return, and a withholding certificate (Form 8288-B) can be requested to reduce the withholding.

    How we solve it: we review the sale before closing, prepare Form 8288-B when it applies and file the return that claims the amount withheld.

The cost of waiting

Postponing a tax obligation has a measurable cost.

These are penalties the IRS applies. In most cases, acting before the deadline is the most economical option.

5%

Failure to file

Of the unpaid tax, for each month the return is late, up to 25%.

0.5%

Failure to pay

Of the unpaid tax, per month, up to 25%, plus interest that accrues daily.

$25,000

Missing Form 5472

Per form, per year, for foreign-owned U.S. companies with reportable transactions, even with no income.

Review my situation at no cost

Source: IRS.gov

U.S. real estate for foreign investors

What's included

This is the usual scope of the service. The final scope is defined in writing according to your case.

Tax planning before, during and after

From the purchase to the sale, with each decision reviewed for its tax effect.

Ownership structure analysis

The tax impact of owning personally, through an LLC or a corporation, and treaty benefits with your country. Tax analysis, not legal advice.

Rental income

Net-basis election, so you pay on profit after expenses instead of 30% of the gross rent, and Form W-8ECI for your property manager.

Individual and entity returns

Form 1040-NR or 1120-F for the owner; pro forma 1120 with Form 5472 for a single-member LLC; Form 1120 for a U.S. corporation; Form 1065, with Forms 8804 and 8805 when there are foreign partners.

FIRPTA on the sale

Form 8288-B when it can reduce the withholding, and the return that claims what was withheld.

IRS representation

Notices, audits and follow-up on your filings, under a power of attorney (Form 2848).

Ongoing tax advisory

An annual calendar of your dates and answers when your plans change.

ITIN help

If you need a U.S. tax ID for these filings, we help you apply with Form W-7.

You only pay for what you need

We design the service around your situation and sign it in writing: scope, price and deadlines, with no fine print.

A clear process from the first call

  1. 1

    Free video assessment (30 minutes)

    Your property, how you hold it and your plans: buy, rent or sell.

  2. 2

    Written plan and fees

    The scope, the fee and the documents to send, all online.

  3. 3

    Filing, representation and follow-up

    You sign electronically; we file on time, deal with the IRS when needed and keep your calendar all year.

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FAQ

Questions about this service

If your question is not here, write to us and we will answer it in English or Spanish.

Ask on WhatsApp
Do you only handle FIRPTA?

No. We cover the whole cycle: planning and structure before you buy, rental income, the returns of you and your entity, the sale, IRS representation and ongoing advice.

Should I buy through an LLC?

It depends on your country, your plans and whether you will rent or sell. We compare the tax impact of each option; the legal side is decided with your attorney.

My LLC has only me as owner: who pays the tax on the rent?

You do. For income tax, a single-member LLC is disregarded: you report the rent on your Form 1040-NR (or Form 1120-F if the owner is a foreign corporation), and the LLC files a pro forma Form 1120 with Form 5472, which cannot be filed electronically.

Is FIRPTA withholding the final tax?

No. It is a prepayment. The final tax is figured on your U.S. return, which claims the amount withheld; if too much was withheld, the excess is refunded.

Can the 15% be reduced?

In some cases. There is no withholding when the buyer will live in the home and the price is $300,000 or less, and a withholding certificate (Form 8288-B) can request reduced withholding. The IRS decides each certificate.

Can you represent me if the IRS sends a notice?

Yes. Our Enrolled Agent can represent you before the IRS with Form 2848, a power of attorney.

My property is in Florida: does the state tax my rent?

Florida does not impose a personal income tax, but federal tax still applies, and short-term rentals pay the 6% state sales tax plus county taxes such as the tourist development tax.

Do I need to travel to the U.S.?

No. Everything is handled remotely by video call, WhatsApp and electronic signature.

How much does it cost?

It depends on your structure and on whether you are buying, renting, selling or all three. You receive a written proposal, and fees are agreed in writing before any work begins.

Official sources

Last updated . Content by the team of Angela María Sanguino, EA.

Guides

U.S. real estate guides

Selling U.S. property as a foreigner: how FIRPTA withholding works Renting out U.S. property as a foreigner: Form 1040-NR and why paying tax on the net is usually better Form 1040-NR: who must file, the substantial presence test and deadlines Does a foreign-owned U.S. LLC pay U.S. income tax? U.S. corporation with a foreign owner: Form 1120 plus Form 5472 Form 5472 for a foreign-owned LLC: a step-by-step guide How to get or renew an ITIN (Form W-7)
Services

Other services

Business taxes Foreign investors IRS representation Tax planning and strategy Bookkeeping (QuickBooks) Personal taxes Company formation

Speak with an Enrolled Agent before your next deadline.

Choose the channel that suits you best.

Request a free consultation Message on WhatsApp Call (407) 684-2173

30-minute initial consultation, free and with no obligation

  • No cost or obligation. You pay nothing until you approve a written proposal.
  • Concrete answers. By the end of the consultation you will know what you need to file and by when.
  • Timely attention. We contact you within one business day, in English or Spanish.
(407) 684-2173 support@adtaxadvisor.com
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