Selling or renting your property is an important event in life, and one that is best facilitated with the help of qualified professionals. When you’re getting started, you’ll want to carefully compare proposals from potential real estate agents.
You may notice, many Real Estate Services agents charge similar fees. If you plan on selecting an agent based on fees alone, you could miss out on the advantages of showcasing your property in its best light. A good Real Estate Services agent is capable of performing numerous roles in the sale of your property like:
- Helps Save You Time
- Is Knowledgeable About Your Local Area
- Helps You Choose The Right Pricing Framework
- Closely Follows Current Market Conditions
- Takes Care Of Paperwork Down To The Finest Detail
For selling a home in Florida, there is no state income tax as there is in other US states. But if you do make money from renting or when you sell your property there will be Federal taxes (to the US government) to pay on the profit. There is also the annual tax on the value of the property that you own.
We would like to strongly advise all non-resident buyers who look for selling a home in Florida, to invest a few hundred dollars to meet professional Real Estate Services who is quite experienced, working with international clients. It’s one of the most important things to understand when buying real estate in another country, as the tax costs could drastically affect your projected return on investment.
A professional realtor along with your accountant will be able to help you understand your own unique tax situation and make sure you are compliant on all aspects of tax law. In many cases the tax to pay may be zero, but the costs of not filing or defaulting may be much higher.
Because an international buyer’s overall tax liability may be different than that of a U.S. resident, depending upon the buyer’s home country’s tax treaty with the U.S., we also think it is best to consult a tax advisor within your home country that is familiar with the tax treaty.
There is also a fee for the 1031 Exchange and global investors will also have to comply with the FIRPTA requirements in addition to the general investor requirements.
When you are contemplating the sale of your investment property, work with your accountant and Realtor to figure out if in your situation it makes sense to do a 1031 exchange, or if it would be better to simply pay the taxes on the profit. Once you calculate each financial scenario and take into account your personal objectives, it usually will be pretty clear which is the better option for your personal situation.