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Immigration and tax questions addressed for the foreign or overseas investor in Sanibel, Captiva and S.W. Florida

Immigration & tax questions often asked

What if you want to stay forever? There are various visas for people who want to live in the United States....

How much can I expect to pay in property taxes?  Property Taxes on Sanibel and Captiva and Lee County

Property taxes are collected by the Lee County government.
They are paid in arrears and are assessed in October and due at the end of March of the subsequent year. You can get a discount if you pay in advance.
The millage rate last year for Sanibel property owners was 0.0186017. This includes Lee County and City of Sanibel taxes.
Residents who live full time in Florida can take advantage of the Save our Homes amendment passed in Florida some years ago. This puts a cap on the increase in assessed value each year. For more information about this and more on property taxes, click on “frequently asked questions” on the Lee County property appraiser’s site.
 

What are the special tax implications for foreign owners of property in the United States? You may own property in the United States as an overseas investor, but there are a few things you will need to know when it comes to renting or selling.......

What is a 1031 deferred tax exchange, and can I take advantage of it?  Many people think about selling and reinvesting into more income or investment property. One would be foolish not to do a tax-deferred exchange! If you sell and reinvest, you will pay income taxes on the realized gain. However, if you call it an exchange, you will pay no taxes. This means that more money is available as leverage for acquiring your next properties. Look at it as a free loan from the government!

What if you want to stay forever? There are various visas available for people who want to live in the United States;

E2 Visa This is the investment visa. The immigrant starts a business or buys an existing business in the U.S. The amount that must be invested has now been increased to $1 million, but if the business is started in an undeveloped area such as certain areas of Central Florida, the amount is halved to $500,000. This visa does not lead to permanent residence.

L1 Visa This visa is for those who already have a business outside of the U.S. The immigrant can be transferred to that business as an intra transfer. This option can lead to permanent residence status (a green card)

H Visa This visa is for those with special skills not possessed by citizens of the U.S. It is renewable for three years.

Visa Lottery This visa is available for immigrants with a high school degree. The age of the person is immaterial.

Extending stay in U.S. requires a B1 or B2 Visa

It’s not difficult to extend the time you can stay in the U.S. as a visitor, according to immigration & tax lawyer Stanley Rose. Recent changes to immigration law made 90 days the default time allowed visitors. Rose, a Southwest Florida tax lawyer says that visitors from visa waiver countries such as Great Britain and Ireland, can go to the U.S. Embassy and obtain a B2 visa that will allow the immigration officer to extend that amount of time to 180 days. For further information on this subject, please visit Rose's website, or email him at SRose@RoseTaxLaw.com

There are many other types of visa available, according to Ricardo Skerrett, Attorney-at-Law, Immigration Practitioner. You will find an extensive list of these visas on Attorney Ricardo Skerrett's website , a bi-lingual source of information and articles about immigration and citizenship. 

 Law that all Non-US buyers should know about!
All property sales by foreign nationals are subject to a 10% withholding at closing unless the seller and the Realtor have planned for this problem. Similar rules apply to rental income received. The Sanibel Property Team recommends that all foreign nationals who are buying or selling property in the USA consult with US tax experts. We can provide you with a list of registered tax experts who can assist you.
A little planning can save thousands of dollars, prevent delays and ensure that your closing goes smoothly.

Rules for a 1031 tax deferred exchange

1. Real Property Use. Both your old and new properties must qualify as investment or business use. If both properties pass this test, you can exchange nearly any type of real estate.

2. 45 Day Identification Period. You have 45 days from the closing of your sale to list the properties you may want to buy.  There are no exceptions to the deadline.

3. 180 Day Exchange Period  From the sale closing date, you have 180 days to close on the purchase of one or more properties from the 45-day list.  Again there are no exceptions to this deadline.

4. Qualified Intermediary (QI) The IRS mandates that you use a QI to prepare the legal documents for your exchange. Because the QI must be independent, it cannot be your friend, employee, broker, or even your accountant or attorney. The QI also holds your money, so that you do not have access to it.

5. Proper Title Holding.  You must purchase and take title to your new property exactly as you held title to your old property.

6. Reinvestment Requirement.  To defer all of your capital gain tax, you must buy a property equal or higher in value than the one you sold.  Also, you must reinvest all of the cash proceeds from your sale.