Hello Forum Members! I am interested in investing in the United States and would be happy to use the wisdom of the forum members ...
Hello Forum Members!
I am interested in investing in the United States and would be happy to use the wisdom of the forum members here.
I wanted to know about the various tax costs after renting the property.
The question relates to the property that belongs to the LLC.
For example, the property generates $ 1 per month. The owner of the property has Israeli citizenship (an employee, if that changes).
I wanted to know (orders of magnitude):
1. Cost of filing a report in the US (llc)
2. US Taxation
3. Taxation in Israel
4. Taxes and other costs unrelated to the property itself (ie renovation, etc., and not to fees and taxes in specific areas)
But the "world" of taxation.
Thank you!
Highly recommend a consultation meeting with Ido Neuman very informative and not expensive at all in relation to the potential profit in taxation
The tax on the US 25 plippers .. and how much in Israel is Papafaff which slaughter
For Flips 25%, but if it becomes a business then it needs to be reexamined and in any case the activity will be under llc with management from Israel and therefore it will be different and may also reach 47%
In addition, anyone who returns directly to the property and chooses the personal track is also exposed to National Insurance (according to the exemption level)
NirBenromano
Thanks for the detailed answer..just need a little more precision.
As for direct taxation, you are quite right.
And it has value and posts I wrote in Bendelfindia.
If the tax is through llc it is different depending on how the business is run
We divide the taxation into 2, American taxation and Israeli taxation.
American Taxation - First, you have to spend ITIN which is a number for foreigners so that the US income tax can be associated with it (cost between $ 100-150)
The llc company is transparent in the US for tax purposes, therefore the taxation is personal taxation, which means that the owners pay personally, similar to a licensed business in Israel. Taxation in the US is based on income tax rates, rental income is included in the definition of joint income and not capital gain. Therefore, you will pay rent for the income according to your tax bracket, assuming you have no other income in the US except for rent of $600 per month, you will pay 10% taxes, which is the first bracket. An American report for an individual will be between 250-500 dollars depending on who the accountant is.
After you have paid in the US, you will have to pay in Israel in accordance with the tax treaty between the countries. In Israel there are 2 tracks. Track 1- 15%- no expense is recognized in America except for depreciation on the property and on the income you pay 15% meaning if your rental income is 600 then 600×12=7200 minus depreciation on that you will pay 15%. Route 2 - Marginal tax - acknowledge all expenses in the US related to the property including the payment of taxes there and what is left will be taxed on it according to your tax bracket, the minimum for the tax bracket is 31%. That is, if you have an annual income of 7200 dollars and after deducting expenses you have 6000 left, you will pay 6000*31%% and this is assuming that you are in the lowest tax bracket. In Israel you will be able to switch between the tracks once a year. The taxation of flips is the same and there is no difference, the only difference is in the US and not in Israel, and if a flip takes more than a year it is taxed according to the capital gain in the US and not according to the tax rate.
Of course I recommend consulting with an accountant before and not relying solely on the response
And a follow-up question about Flip transactions. What is the tax policy?
I'd love to know too. following.