Luxury Real Estate Buyers in Miami Dade County Florida will soon lose their secrecy

20130201-182045.jpg A recently announced new program created by the U.S. Treasury Department will soon result in the uncovering of the names of luxury real estate buyers in Miami-Dade County and New York City.

“In Miami-Dade County, the rule will apply to all cash sales worth more than $1 million; in New York City, it applies to sales $3 million or higher. The test program runs from March through August.”  The purpose of the program is to disclose or weed out any money from the black market or illegal funds.

And, the Treasury Department will not be the only federal agency to increase oversight of luxury home sale buyers trying to hide ill-gotten gains. “The Justice Department will start to focus on real estate deals separately rather than include them in bigger transactions; and the Federal Bureau of Investigation (FBI) plans to create a new unit that focuses on money laundering with real estate “a central emphasis.”

The emphasis will be on shell companies which are often LLCs or other partnerships.  This will put more scrutiny on title insurance companies who will not be required to discover the actual identities of cash buyers and report their information.

Under Treasury rules, a “beneficial owner” – one whose name must be sent to the department – are “each individual who, directly or indirectly, owns 25 percent or more of the equity interests.”

Source: The New York Times, Jan. 13, 2017, Louise

For more information, speak to real estate attorney Jacqueline Salcines, PA, today. She holds a dual degree in both accounting and law and can provide both tax and legal advice.   The first consultation is always free of charge.  Or email attorney Jacqueline Salcines directly your real estate question at J.Salcines@salcineslaw.com

TRUST |  COMMITMENT  | RESULTS

Jacqueline A. Salcines

Jacqueline A. Salcines

JACQUELINE A. SALCINES, ESQ.
706 S. DIXIE HIGHWAY
SECOND FLOOR
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NEW RESIDENTS IN THE UNITED STATES CAN HAVE THEIR INCOME ABROAD SUBJECT TO U.S. TAXES

As soon as a foreigner has been in the United States for 183 days in your first calendar year, their income is subject to U.S. Tax filing.  However, it is not just the income they earn in the United States, but also the income they earn abroad, be it Venezuela, or another foreign country.

The United States Treasury has been demanding more and more disclosure from foreign banks, which has resulted in full disclosure of foreign income.  Voluntary disclosure programs that started in 2009 in the wake of the criminal cases targeting UBS, resulted in partial amnesty of offshore income.   This disclosure then led to more scrutiny by the United States and resulted in the taxing of foreign income.  For example, if a foreigner sells their home abroad before coming to the United States and puts that money in a bank account at home, they have to disclosure the account and any interest income collected on it.

For many foreigners that have suffered devaluations in their own home currency, this can result in a huge loss of income.  If there is more than one exchange rate, the IRS allows taxpayers to use the one that more properly reflects the foreigners true income.

For this and other tax implications on real property and investments in the United States, call our firm.

Attorney Jacqueline A. Salcines, Esq. is both a real estate lawyer and accountant with extensive experience representing buyers  and sellers in their real estate property needs in Florida.  As an attorney, accountant and title agent for Old Republic National Title Insurance, Inc., we provide a complete array of closing services.  Consult with attorney Jacqueline Salcines, PA today with regard to:

  • Review of Contract for Sale and Purchase
  • Review of Contract Addendums
  • Review of Condominium Riders
  • Title search and examination
  • Lien letters
  • Incorporation for purchase
  • Quit Claim Deeds
  • Tax implications on purchase
  • Survey requests
  • Estoppel requests
  • Lien negotiation
  • IRS/Federal tax lien on property negotiations
  • Seller docs
  • Preparation of Purchase Money Mortgages and Notes

Meet with our real estate attorney today and put us to work for you.  The first consultation is always free of charge.  Or email attorney Jacqueline Salcines directly your real estate question at J.Salcines@salcineslaw.com

TRUST |  COMMITMENT  | RESULTS

Jacqueline A. Salcines

Jacqueline A. Salcines

JACQUELINE A. SALCINES, ESQ.
706 S. DIXIE HIGHWAY
SECOND FLOOR
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TAX ON FOREIGN INVESTMENT IN U.S. REAL ESTATE (FIRPTA TAX) INCREASES TO 15% EFFECTIVE FEBRUARY 16, 2016

 THE FOREIGN INVESTMENT IN REAL PROPERTY ACT (FIRPTA)

SET TO INCREASE TO 15% ON FEBRUARY 16, 2016

FIRPTA, which stands for:

Foreign

Investment in

Real

Property

Act

was enacted in 1980 to ensure that foreigners, who are not required to pay income taxes or file income tax returns in the United States, paid their income taxes upon selling real property in the U.S.

Big changes are in store for 2016 under the FIRPTA law.  Effective February 16, 2016, the withholding increases from 10% to 15%.  That is a huge difference especially for property sales occurring in the early party of the year.  Sellers in 2016 will need to wait until 2017 to file their taxes and presumably obtain their FIRPTA refunds.

Although you can apply for early discounts, they are rarely approved.  Once FIRPTA has been withheld, then it will likely stay withheld until such time as the foreign seller files their income taxes.

There are some exemptions to FIRPTA withholding including:

  • The amount realized does not exceed $300,000.00 and the buyer will the an owner occupant.  This requires a specific affidavit regarding owner occupancy.
  • Seller applies for a withholding certificate with the IRS using form 8288-B. This can take longer than 90 days however and therefore it is necessary to plan ahead so it does not stall your closing.

There is also a distinction as of February 16, 2016:

  • If the property sells for $300,001 to $1 million, and it will be owner occupied, then the FIRPTA rate is 10%.
  • If not owner occupied, then 15%
  • For properties selling over $1 million, the FIRPTA rate is 15% whether or not the buyer will occupy the property

Attorney Jacqueline A. Salcines, Esq. is both a real estate lawyer and accountant with extensive experience representing buyers  and sellers in their real estate property needs in Florida.  As an attorney, accountant and title agent for Old Republic National Title Insurance, Inc., we provide a complete array of closing services.  Consult with attorney Jacqueline Salcines, PA today with regard to:

  • Review of Contract for Sale and Purchase
  • Review of Contract Addendums
  • Review of Condominium Riders
  • Title search and examination
  • Lien letters
  • Incorporation for purchase
  • Quit Claim Deeds
  • Tax implications on purchase
  • Survey requests
  • Estoppel requests
  • Lien negotiation
  • IRS/Federal tax lien on property negotiations
  • Seller docs
  • Preparation of Purchase Money Mortgages and Notes

Meet with our real estate attorney today and put us to work for you.  The first consultation is always free of charge.  Or email attorney Jacqueline Salcines directly your real estate question at J.Salcines@salcineslaw.com

TRUST |  COMMITMENT  | RESULTS

Jacqueline A. Salcines

Jacqueline A. Salcines

JACQUELINE A. SALCINES, ESQ.
706 S. DIXIE HIGHWAY
SECOND FLOOR
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“AS IS” CONTRACT V. A REGULAR CONTRACT IN FLORIDA

 FLORIDA REAL ESTATE and TITLE ATTORNEYS

Practicing real estate law and having clients send me offers to review on a weekly basis, often I am asked whether it is a safe bet to enter into an “AS IS” contract?  Will the buyers deposit be protected if there is anything that comes up at inspection?  The answer is YES.  Well, allow me to be clearer. Always with the smart backing of a knowledgeable real estate lawyer and realtor will the buyer/seller be 100% protected.

The distinction between a Florida “AS IS” real estate contract and a regular Residential Contract for Purchase and Sale is simple really.  In an “AS-IS” contract, the buyer has the right to inspect the property however, if anything comes up during inspection, particularly large ticket items such as roof replacement or plumbing or electrical work, the seller is NOT required to make any concessions. That is, the seller is not required to either repair, replace the item or make a credit for the cost of the repair or replacement.  The buyer can then elect to close with the items, or obtain a full report for the cost, and make an informed decision with his attorney and realtor as to moving forward with such items of disrepair.

In a Regular FAR BAR or FAR Contract for Purchase and Sale of Real Estate, the seller is required to correct items in the inspection report or give credits for such repairs.  The seller can not simply deny such repairs.

Not all sellers like to enter into any type of contract that is not AS IS.  However, with a well versed realtor and attorney protecting them, there should be no fear in doing so.

At Jacqueline Salcines, PA we are both real estate lawyers and accountants  with extensive experience representing buyers  and sellers in their real estate property needs in Florida.  As an attorney, accountant and title agent for Old Republic National Title Insurance, Inc., we provide a complete array of closing services.  Consult with attorney Jacqueline Salcines, PA today with regard to:

  • Review of Contract for Sale and Purchase
  • Review of Contract Addendums
  • Review of Condominium Riders
  • Title search and examination
  • Lien letters
  • Incorporation for purchase
  • Quit Claim Deeds
  • Tax implications on purchase
  • Survey requests
  • Estoppel requests
  • Lien negotiation
  • IRS/Federal tax lien on property negotiations
  • Seller docs
  • Preparation of Purchase Money Mortgages and Notes

Meet with our real estate attorney today and put us to work for you.  The first consultation is always free of charge.  Or email attorney Jacqueline Salcines directly your real estate question at J.Salcines@salcineslaw.com

TRUST |  COMMITMENT  | RESULTS

Jacqueline A. Salcines

Jacqueline A. Salcines

JACQUELINE A. SALCINES, ESQ.
706 S. DIXIE HIGHWAY
SECOND FLOOR
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