If you are a foreign investor in the U.S. you are probably subject to tax in the U.S. on your U.S. source income. That is, while U.S. citizens and residents are subject to tax on their worldwide income, non-citizens and nonresidents of the U.S. are generally subject to tax in the U.S. on their U.S. source income.
The United States has always been a target for foreign investment in real estate and over the past four to five years the crisis in the U.S. economy has made U.S real estate even more attractive. Many investors from around the world investing in U.S. real estate.
The lifecycle of your investment in U.S. real estate may be broken into three phases: (1) Acquisition; (2) Operation; and (3) Disposition. Planning the investment in advance can translate into greater value of your investment. Each one of the phases invloves different tax issues.
Based on the investor's objectives, it is important to plan the investment in advance, taking into consideration the specific facts and circumstances of each investor.
As an investor in U.S. real estate you are probably required to file annual federal and possibly state income tax returns.
The due date for filing income tax returns by foreign investors is generally June 15th following the end of the tax year.