Questions when buying multimillion $ properties cash?

Do you have to report where you got the money when you purchase excessively large properties cash? IRS or any other entity?

Comments(2)

  • KyleGatton18th June, 2003

    If you are smart you are doing it through an offshore corporation which doesnt have to be reported to the IRS. If the monies are here in the states, then you will have to get a lawyer. Belize is nice this time of year (Hint Hint Nudge Nudge Wink Wink) The best way is to have your own offshore bank do the financing. One can be started as cheap as 250K in some countries. Make no mistake though the IRS will know when the property changes hands. Email me if you have a specific question.

    Good luck
    Kyle

    KyleGatton@Hotmail.com

  • hughes5th July, 2003

    There are many ways to do this kind of deal. You could set-up a Bermuda holding company to put all of your offshore shell companies into. A Bermuda holding corporation can defer USA taxes indefinitely on profits made in the USA. (The laws constantly change so always check for updated information.) The best way is to create a network - start a Nevada or Delaware corporation, then have that corp owned by an offshore shell corporation or trust or Panama IBC, then have that owned by the Bermuda Holding Corporation. Tax evasion is illegal, but tax avoidance is not. If your money was made overseas and you now want to invest it into the USA without alot of IRS obligations, then a Bermuda Holding Corporation is the way to go. However, if your money was made in the USA, and you want something simple, then start with a totally offshore electronic account such as NetPay. But you would still have to pay USA taxes even if you take it offshore because it was earned here. I hope this has been useful. You can send me email (see my profile) with more questions if you like. I am new to real estate, but use to be an international investment banker and trying to switch careers and get into real estate. I know offshore banking and trading financial instruments, so I am sure that I will get the hang of real estate quickly, however, I would prefer the passive way better - note investing, instead of being a landlord, etc.

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