Five mistakes foreign buyers to Florida state U.S. make
.Mistake No. 1
“I do not need to worry about estate taxes; I am in good health”Even if you are young and healthy, it’s never too early to start planning
for what will happen to your estate when you are gone and how muchtax your loved ones will have to pay. The United States imposes anstate tax at a rate up to 40 percent on the portion of a foreign
individual’s gross state (assets controlled by taxpayer ) situated in the
United States that exceeds $60,000. The gross state includes real estateas well as other assets such as stocks of U.S. corporations located in theUnited States. Ac
cordingly, a foreigner’s state is generally subject to
U.S. state taxation if the foreigner dies owning U.S. real estate directly (and in certain cases, indirectly through an entity). If the foreigndecedent owns the U.S. real estate jointly with another individual, thefull value of the U.S. real estate is taxed except the extent the surviving joint tenant can prove he or she contributed to the original purchase of the U.S. real estate.A tax attorney and certified public accountant can work with a foreignbuyer to ensure that he or she is fully aware of the tax consequences of buying U.S. property.Mistake No. 2Believing that use of a foreign corporation will offer protection fromU.S. estate tax.