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Good morning. The LLC would be taxed as a partnership...i.e., it would be a flow-thru entity. If you own it as a sole owner, you would not event need to file a tax return for the LLC; rather you could simply report the results on your Form 1040. Or, at your option, you could have the LLC file an information return...the Form 1065..and then you would get a K-1 which would cause you to report the 1065 information on your 1040.
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What is the benefit of a non resident alien owing the rental property via a LLC vs in my own name? I do not live in the United States but only visit about 1 week in a year.
Do you mean I need to file a non resident US federal tax return and a California tax return to report the rental income each year? And also a return/form for the the LLC?
The agent told me I only need to pay withholding tax of 35% and that is it. The management company will pay for me to the IRS and there is nothing more I need to pay or to do??
My other friend also told me to use a BVI to hold the LLC and then buy the rental apartment?
I also heard that I will have to pay capital gain tax when I sell the rental property some day?
I am all confused. All I am looking into is to buy a house in California and rent it out for the time being until my son goes to college in 3 years and he can have a place to stay.
Looks like too expensive to buy a place in california!
Can you please help. The property agent is on my back!
Thanks Lev, I am getting a clearer picture now...It sounds very expensive to own a rental property in the US.
How about owning the LLC via a BVI (British Virgin Island) company? does that relieve me from paying tax to US federal and California government?