The Internal Revenue Code contains numerous traps for the unwary foreigner who invests in U.S. real estate. The tax law provisions applicable to nonresident foreign investors are often quite different – and more onerous – than the tax rules applicable to U.S. citizens and foreign residents.
It’s a big and confusing question for many homeowners in the wake of the December tax law changes: Are new interest-deductible home equity credit lines (HELOCs) and second mortgages now totally out of reach going forward?
Goldman Sachs Group Inc. said on Friday it would take a $5-billion earnings hit in the fourth quarter for the new U.S. tax law, becoming the first major U.S. bank to detail the law’s one-time impact on corporate profits held overseas.
