US Property Investors

Thinking of Investing in the US with your Family Trust?

As a trustee of your family trust one of your key responsibilities is managing and preserve the trust your assets for the benefit of the beneficiaries. Your investment decisions are important in achieving the objectives set out in the trust deed.

• Do you have an investment strategy?
• Have consulted with qualified professionals before investing?
• Do you understand the risks and the benefits of investing in the US?
• Do you understand you’re the tax implications in the US and Australia?

Thinking of Investing In the US with Your SMSF?

One of your key responsibilities as a trustee is managing your fund's investments. Your investment decisions should be designed to protect and increase your members' benefits for retirement.

Your Investment Strategy

The ATO requires you to invest according to your written investment strategy. This sets out your fund's investment objectives and how you plan to achieve them. Your investment strategy will help you maintain the right mix of investments for your fund and its members. Have you:

• Taken into account the personal circumstances of all the fund members, including their age and risk tolerance?
• Consulted with qualified professionals before investing?
• Do you understand the tax implications for the SMSF in the US and in Australia
• Considered the restrictions placed on what an SMSF can invest in?

Taxation

It is very important for foreign investors to file a timely return in the U.S. otherwise they may lose some the tax privileges in the U.S.A. We can file your returns on time in the U.S. and in Australia. Our understanding of both U.S. and Australian law puts us in a very unique position to give Australians a more comprehensive tax picture that will help mitigate taxes.

Direct Investments Into The US - Have You Filed Your BE-15?

All U.S. business enterprises in which a foreign person (in the broad legal sense including a company) owns directly and / or indirectly a 10% or more voting interest or the equivalent) are subject  to these reporting requirements. This includes foreign ownership of real estate, improved and unimproved, except residential real estate held exclusively for personal use and not for profit making purposes. But you can claim an exemption from filing these reports on annual basis.

The penalties for failing to file are stiff. Whoever fails to report shall be subject to a civil penalty of not less than $2,500, and not more than $25,000, and to injunctive relief relief commanding such person to comply or both. Whoever wilfully fails to report and, if an indvidual, may be impriosoned for not more than one year, or both. Any officer, director, employee or agent of any corporation who knowingly participates in such violations, upon conviction, may be punished by a like fine, imprisonment or both.Read More

Risk Assessment

It is imperative that property investors conduct a risk assessment of each property before buying it. It is true that the U.S. housing market is offering bargains, but it does not mean throw caution to the wind. Risk assessment is a step in risk management. Call us we can help you with the homework for each property you choose to invest in.

Foreign Currency Translation Risk

The exchange rate risk associated with investors investing overseas is real. This poses a serious threat for investors conducting business in foreign markets. Investors attempt to minimize these transaction risks by purchasing currency swaps or hedging through futures contracts.

Currency Conversion Calculator