Tax Calculator

Estimate tax implications and potential deductions for international real estate investors in the United States.

FIRPTA Analysis
Depreciation Benefits
International Focus

Investment Parameters

$
$

Annual Operating Expenses

$
$
$
$

Property State

FL
0.0% income tax
Property tax: 1.02%
No state income tax
TX
0.0% income tax
Property tax: 1.81%
No state income tax
NV
0.0% income tax
Property tax: 0.75%
No state income tax
AZ
4.5% income tax
Property tax: 0.66%
Low property tax
NC
5.25% income tax
Property tax: 0.84%
Moderate taxes
CA
13.3% income tax
Property tax: 0.75%
High income tax

Investor Information

Tax Summary

Annual Federal Tax
$1,245
State Tax
$0
Property Tax
$5,100
FIRPTA Withholding
$5,400

Net Cash Flow

Gross Rental Income: $36,000
Operating Expenses: ($8,980)
Total Taxes: ($11,745)
Net Annual Cash Flow: $15,275

Depreciation Benefits

Annual Depreciation: $18,182
Tax Savings: $4,364
Effective Tax Rate: 32.6%

Tax Planning Insights

Important considerations for international real estate investors in the US.

FIRPTA Withholding

Foreign investors are subject to 15% withholding on rental income under FIRPTA regulations.

  • • 30% withholding on property sales
  • • Can be reduced with proper elections
  • • Treaty benefits may apply

Depreciation Deduction

Residential rental properties can be depreciated over 27.5 years, providing significant tax savings.

  • • Reduces taxable income annually
  • • Recapture on sale at 25% rate
  • • 1031 exchanges can defer recapture

State Tax Planning

Choose states wisely - some have no income tax, which can significantly impact returns.

  • • No income tax: FL, TX, NV, WA
  • • Property tax varies by location
  • • Consider total tax burden

Need Professional Tax Advice?

Tax regulations for international investors are complex and subject to change. Consult with qualified tax professionals for personalized advice.

Connect with Tax Experts