Foreign investment opportunities in the US appeal to investors across the globe, most commonly in the form of stocks, commercial property, or currency. As a citizen of a country other than the United States, you must be mindful of the tax requirements set by the Internal Revenue Services.

Investments in US real property, while potentially lucrative, are sometimes too costly to individual investors outside the United States, as well as to small groups of foreign investors. Ann Irons, CPA provides tax services for foreign investors in Bellingham, MA. She explains that debt instruments are a more accessible, less prohibitive means of generating income for investors who are not residents of the United States. How do you know which instruments of debt are subject to tax and which are not?

Choosing the appropriate ownership vehicle is an essential step for foreign investors building their portfolio with investments in the United States. A good fit offers advantages in several financial areas, not least of which are tax-related. Even so, investing as a corporation rather than an individual carries certain risks; working with an accountant experienced in foreign investment tax returns in Bellingham, MA is the best way to enjoy these benefits while avoiding costly missteps. Ann Irons, a certified public account who prepares tax returns, explains.

As a foreign investor pursuing opportunities in the United States, partnering with a licensed, registered CPA (certified public accounting) has several advantages. Even seasoned investors find that navigating tax reporting requirements is time-consuming and complicated; even a single error can have serious repercussions from both a legal and financial standpoint. Ann Irons, a Bellingham, MA tax accountant, introduces a few of the most basic requirements and essential documents. 

These days nearly everyone seems to have found a way to tap into the collective power of the crowd, a practice known as crowdsourcing. The idea behind crowdsourcing is that hundreds, even thousands of individuals can work together to solve a problem, complete a project, and generate new ideas. Crowdfunding — Kickstarter is a good example — is a growing trend among foreign investors, says Ann Irons, a Bellingham, Mass. CPA who prepares taxes for foreign investors in the US, shares the details.

How can foreign investors benefit from crowdfunding?

Many foreign investors lack the resources and access to pursue some of the more costly opportunities, especially large commercial real estate properties. Enter crowdfunding, which aligns various investors to capitalize on lower minimum investments as a group, giving them the ability to invest in these previously inaccessible opportunities. Realty Mogul is currently one of the most popular crowdfunding platforms, but several other options are available; the number of similar services is expected to increase.

Opportunities in the United States have drawn investors from across the world in search of lucrative stocks and securities.

As an investor and resident of another country, you may find it helpful to learn how you can grow your portfolio while minimizing tax costs.

Ann Irons, a CPA who handles international tax returns in Bellingham, MA, explains how tax treaties benefit foreign investors by reducing the amount of tax paid on their US investments. If no treaty exists between your country and the US, your income will be subject to the full rate of 30 percent.

Across the United States, brokers report higher numbers of property sales to non-US buyers. The strength of various foreign currencies relative to the USD has attracted the attention of investors who find their purchasing power greatly increased. Even so, a foreign investor must understand the tax implications that come with an investment in land, residential, and commercial properties. Certified public accountant Ann Irons, who works closely with foreign investors, real estate lawyers, and resident aliens, discusses questions to ask when considering foreign investment in US properties.

As a foreigner considering an investment in real property within the United States, you must take into account current tax codes and laws before finalizing your decision. The most obvious question centers on whether you should pay a higher effective tax rate, forgoing a US tax return. If not, you must file a tax return to secure a lower effective tax rate. Ann Irons, CPA, explains that such an important decision must be made in accordance with several complex codes and regulations. With thousands or even millions of dollars at stake, can you really afford to go it alone?