Hi,

Disclaimer: I'm not an accountant or a lawyer so don't sue me for telling you what I would do

Yes I resolved this after sifting through heaps of cr@p online and speaking to many people each with different opinions (many wrong or adding complexity for no reason).

You need an LLC incorporated in the state which you are buying the property. It acts as a pass through entity and any tax you pay in the US can be claimed as a foreign tax credit here in Australia. There is a way to do it with a C-Corp or S-Corp but you are adding complexity for no reason and it sounds dangerous to me. Just dissolve the C-Corp (I had to do the same with an LLC I created incorrectly at first) and form an LLC in the State you want to buy. Many states you can do this online and it's quick.

The unfortunate side of this is you will have to go back to the US then to get the bank account for the LLC… I found BoA the easiest to deal with.

-chuckyp