Do foreign investors get double-taxed when earning income from U.S. real estate?<br />This video breaks down the truth about U.S. taxes for global investors—including fractional ownership, withholding tax, DTAAs, and deductions.<br /><br />⭐ What You’ll Learn:<br /><br />Why paying tax is NOT a penalty but proof of a real, regulated investment<br /><br />The difference between fractional ownership vs. REITs<br /><br />How DTAA (Double Taxation Avoidance Agreements) prevent double taxation<br /><br />The two-stage process:<br />Stage 1: US taxes rental income at source (20–30% withholding)<br />Stage 2: Your home country gives you Foreign Tax Credit<br /><br />The core principle: “You report twice, but you pay once.”<br /><br />How deductions like maintenance, mortgage interest & depreciation lower your effective US tax<br /><br />Smart structuring using a US LLC<br /><br />How platforms automate 1099/K-1 forms<br /><br />Why advanced investors use a 1031 exchange to defer capital gains<br /><br />📌 Example Covered in Video:<br /><br />On a $10,000 investment earning 7% ($700 income), the global tax burden becomes only 17.5% after applying foreign tax credits.<br /><br />The takeaway:<br />The goal isn’t to avoid taxes—it’s to build stable, dollar-denominated income that’s worth taxing.
