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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29966
Experience:  Taxes, Immigration, Labor Relations
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I bought a property in Florida with my own cash but used my

Customer Question

I bought a property in Florida with my own cash but used my foreign corporation to put the ownership in .
I could place a loan to my corporation or simply just change the ownership to personal.
What is best for 1. Yearly tax on rental net 2. Selling property in the future as a foreigner
3. Should I leave property in my overseas corporation to write off airfare etc..
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

That makes no difference regarding tax liability - whether you realize rental income OR the gain on the sale of the property - both will be included into taxable income of the owner.

Thus if the owner you personally = that will be personal income and in the owner is a corporation - income woudl be reported on corporate tax return.

But you own a foreign corporation - there will additional reporting requirements on your personal tax return.

Customer: replied 1 year ago.
I am sorry my question wasnt clear. Does Corp pay same tax as personal on rental income and what percentage is that?
Expert:  Lev replied 1 year ago.

Corporation pays income based on corporate tax rates.

These rates are different from individuals.

If that is a foreign corporation - it will file form 1120F

and for tax rate schedule - see instructions page 25

https://www.irs.gov/pub/irs-pdf/i1120f.pdf

So for net income between $0 and $50,000 - the tax rate is 15%