If you are australian and buy a property in new york state using a c-corp i know you have to pay 15cents in the $1 for usa federal tax- how much is the state tax? how much if you bring the money back to Australia?
Liz2005
Hi Liz,
Try this for NY state tax;
Or try from some of these;
http://www.google.com.au/search?hl=en&ie=ISO-8859-1&q=new+york+state+taxes&btnG=Google+Search&meta=
I know your enthusiastic but it doesn’t take too much to find these types of things out. If in doubt ‘google’ it! [biggrin]
Liz,
8% state tax and depending on who you talk to and where your C corp is resident some say you dont have to pay it. I think you do for what its worth. Also tax rate increases for higher profit.
Just remember the double taxation agreement doesn’t apply to coporations and any funds coming to ozzie are taxed as income even after you have payed tax in the US.
If you go for non resident return its 30% witholding tax that you get credit for in oz.
Liz,
Also dividends from a company are taxed at 15% . So without state tax you are looking at 30% and then there is the question that the dividends for a company are not part of the DTA so they may have to be declared as income here in oz……
does the non-resident return start to look better to you ?
Thanks for the reply – so if i bought a place for $55000with an annual rent of $11400 and my expenses without interest where $5000 ,
interest was 8%of 55 000 = $4400
how much tax would i pay????????Liz2005
Liz,
You best talk to an accountant but in general the % rate in the above messages will aplly either 15%, 23% or 30% above on $600 depending on how you structure it also cost of doing return will need to be deducted as well. Then any ozzie tax due after that if you take the money back here and it is outside the DTA.
Hi liz
remember you will pay tax only on the actually profit the home makes for you.
If you buy through a C Corp , the idea would be to spend the profit so there is no tax payable. I’m not an accountant so check what i’m saying but if you use the profit for a trip to view the property then you will have no tax to pay.One other option is to use a Limited Liability Company (LLC)and not an C corp, it has flow through taxation which means that it will be the end recipient who pays the tax.
Its such a complicated are even the tax experts are learning all the time.
regards westan
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