All tax matters various by each individual’s portfolio, please consult your tax adviser for your specific situation. The following is a general rule of thumb.
For Foreign owners, IRS require form W-8ECI on file for each foreign owner if not, owners are required to send in 30% of gross rents as withholding. Annually Manage should issue form 1042-S in place of a 1099.
When property is sold, the buyer must deduct and withhold a tax on the total amount realized by the foreign person on the disposition. The rate of withholding generally is 15%.
All tax matters various by each individual’s portfolio, please consult your tax adviser for your specific situation.