What are the requirements by the Bureau of Economic Analysis in regard to Australians purchasing investment property in the U.S. through LLC’s
Do we need to lodge a BE-15 Claim for exemption ?
What about a BE-12 every 5 years ?I’ve received conflicting information regarding this ranging from
1. Not required to file unless contacted by BEA
to
2. Harsh penalties for failure to file the correct forms.Any experienced investors like to share their knowledge of this subject ?
Hi Lauriek,
I’ve got an apartment in Georgia and its been nothing but head aches when it comes to the administration. Not to turn you off your prospective investment, just to inform you that I have had to employ an American-Australian accountant to advise me on such matters, and file my LLC tax returns (state and federal). Such people are hard to come by and will cost you significantly more than say a standard Australian accountant. My LLC is in Georgia, and I havent had to file a BE12 or 15, however I have only owned it for 2 years. My accountant has not mentioned this however this may be because of how long I have held it for.
I would recommend finding an american australian accountant (they are out there) and pay for the advice. If you have no joy, PM me and I will put you in touch with Jason, who has fixed a lot of the gaps that the “investment group” that I went through missed.
Best of luck,
Ben
Thanks Ben & Nigel for the responses:)
Ben, it’s not a proposed investment. I bought a house in Ohio about 14 months ago, and just recently bought a block of 7 units (also in Ohio). I have found a great U.S. based tax specialist (E.A.) whos’ been great. The Aussie “Investment Group” have advised to file a BE-15 Claim for Exemption.
From my own research, it appears that it WAS a requirement for ALL foreign investors to disclose to the BEA full disclosure of their investments, although judging by the wording on the current form compared to previous years forms, the BEA are now directly contacting everyone who needs to file reports.
As a safeguard against possible penalties I filled it out and posted it to them, I’ll repost to this thread if there’s and response.
Great interview Nigel, thanks for sharing :)I use US Tax Central who advise that the BE-15 Claim for Exemption is required to be lodged, which I have done.
Regards
David-
This reply was modified 9 years, 6 months ago by
DGHayes.
Hi Lauriek,
I’ve got an apartment in Georgia and its been nothing but head aches when it comes to the administration. Not to turn you off your prospective investment, just to inform you that I have had to employ an American-Australian accountant to advise me on such matters, and file my LLC tax returns (state and federal). Such people are hard to come by and will cost you significantly more than say a standard Australian accountant. My LLC is in Georgia, and I havent had to file a BE12 or 15, however I have only owned it for 2 years. My accountant has not mentioned this however this may be because of how long I have held it for.
I would recommend finding an american australian accountant (they are out there) and pay for the advice. If you have no joy, PM me and I will put you in touch with Jason, who has fixed a lot of the gaps that the “investment group” that I went through missed.
Best of luck,
Ben
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Ben, which investment group did you go with? Many of these groups just focus on the sale then cut and run once the property closes. Many are left clueless with the regulatory and accounting and tax requirements as well as what to do when the dodgy tenant trashes your house.
Cheers Ivan
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
Email Me | Phone MeSMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS
Hi Ivan,
I used US Invest after a friend of mine recommended them.
Stay away from US Invest, as well as any one associated, Ryan Mcfarland, Lachlan McPherson and all those guys. They are out to take your money and put it in their pockets with zero concern for your position.
For example, I bought a 1 bedroom unit in GA, Atlanta. There was a rent guarantee that came along in case of vacancies.
Well there was a vacancy about 1 month after I purchased – for around 5 months. US Invest paid for 1 month, and then stopped paying, stopped responding to emails, wouldn’t even reply after threats of legal action. They currently owe me around $2500 and have refused to pay.
Stay well away from them, they are the people that damage the investment property market and truly are sharks.
Cheers
Ben
Hi Ben
You should have a look at the work we are doing
We are based in Orlando Florida I am here at present but will be back in Australia on the 24th May and would be happy to have a chat.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hi Nigel.
No thanks.
Cheers
Ben
David, How did you file the BE-15 ? Did you mail it or were you able to e-file ?
Ben, U.S. Invest were hounding me too. I never went with them because they gave me a bad vibe, very pushy :( Sorry to hear you got burnt by the scumbags.
The problem is that many people have been turned off investing in the United States because of bad experiences. It is important to realise that many companies that sell property are buying properties sight unseen or fully renovated that are often over priced. It is important that you do your research carefully.
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I am just saying that not all companies are the same. I think it is difficult for most people to do this on there own.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
Hi guys, here’s my two-cents on the above topics:
I ended up using a mob out of Phoenix for my taxes. All went very smooth and they got me everything I needed in no time at all. Lauriek, let me know if you want their details and I’ll dig them up.
Regarding US Invest, I have also had my own dealings with them which started great and ended not so great, particularly after Lachlan left. I believe he actually left in 2013 and they’ve been riding his coattails somewhat ever since. I contacted him some with some tax issues and he actually got me in touch with all the right people without asking for a penny. Not sure what he’s doing these days but I wouldn’t put much faith in whoever is pulling the strings at US Invest.
Nige, whats your thoughts on the Florida market with the USD going up and the impact that will have on tourism? I’m not looking for bargains at this point but US is still on my radar so I might send you a PM if that’s alright?-
This reply was modified 9 years, 6 months ago by markymarkdennis.
Lachlan McPherson is now here http://casacapitalgroup.com/
Thanks Lauriek, will check them out! Regarding taxes, I was been recommended this Jan Doherty mob out of Florida. Doesn’t seem like they self promote either which seems to be a good thing based on a lot of what I’m reading in these forums. Has anyone else used them?
I was sent a BEA form, completed it the first year then let it go the next due to pressure of work. I’ve never been contacted again. I have clients who filled them out for a couple of years then ignored them and have heard no more. Once they have the general drift of what you are up to, they seem to leave you alone. I think it’s just a way of trying to keep some stats on purchasing trends but it doesn’t seem like they are well funded to follow through with fines if they are ignored. Never ignore the IRS though as they will come after you. Two clients decided they were not going to bother with lodging a return and both have been given a $10,000 fine. Another received a fine that was waived pending further compliance. My Accountant works from home and is very interested in Australian investors. He’s very reasonably priced and my advice would be to find someone small who is willing to educate themselves on what our tax requirements are. Bigger firms can’t always do this.
Judith Ottosen | Outback Realty LLC
Email MeI have just been in Florida and the markets are moving well. It is interesting that the time on market is a little longer than it was last last year. We are focusing on more expensive houses $160,000 to $400,000 because there are more owner occupiers who ca get finance in this range. I spoke to an accountant I know well in Texas and he says that the housing market has slowed there as well.
One reason could be that as the markets improve the banks are foreclosing on people a little quicker.
Because of the dollar dropping we are not recommending straight by and holds but buy and flip. I do think that new homes aimed at tourists is an option and we also focus on commercial property. The population is expected to grow a great deal over the next few years and I believe that Florida will continue with strong growth.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
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This reply was modified 9 years, 6 months ago by
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