Buying Houses W-8 Style

[mystic one]

is it possible for a foreign jurisdiction to buy houses in america?? you can use a w-8 non intereting bearing account to purchase your properties? or do mortgage brokers require only us corporations the privalage of mortgages?

I presume, you wouldnt want to buy the houses in the w-8 as this leaves too much legal risk?

use the corporation to buy the houses, and then transfer assests into the w-8,?? or can you just use the w-8 directly to purchase properties . ie real estaste investing... ???

[REDCLOUD]

is it possible for a foreign jurisdiction to buy houses in america?? you can use a w-8 non intereting bearing account to purchase your properties? or do mortgage brokers require only us corporations the privalage of mortgages?

I presume, you wouldnt want to buy the houses in the w-8 as this leaves too much legal risk?

use the corporation to buy the houses, and then transfer assests into the w-8,?? or can you just use the w-8 directly to purchase properties . ie real estaste investing... ???

What is a foreign jurisdiction? Form W-8 is an IRS form used to notify a bank of a foreign owner, it conveys no legal status or standing whatsover. It is impossible to buy a house in a w-8 as a w-8 is just a form. Consider a pension plan, SEP, or Roth IRA as these are legal entities that pay no tax at all. Many firms, such as TD Waterhouse, Charles Scwhab,Lincoln Trust set it up for free over the Internet and file all related tax returns for you. No need to go to Gibralter, Jersey, or the Cayman islands.

[charlesa6]

Originally Posted by REDCLOUD

What is a foreign jurisdiction? Form W-8 is an IRS form used to notify a bank of a foreign owner, it conveys no legal status or standing whatsover. It is impossible to buy a house in a w-8 as a w-8 is just a form. Consider a pension plan, SEP, or Roth IRA as these are legal entities that pay no tax at all. Many firms, such as TD Waterhouse, Charles Scwhab,Lincoln Trust set it up for free over the Internet and file all related tax returns for you. No need to go to Gibralter, Jersey, or the Cayman islands.

Here it is. Attachment 1027 You need Adobe PDF to view it.

[Livefire]

That form will do nothing but barbecue yer backside in molasses if you dont have the right asset protection plan in place! The self directed retirement fund or IRA purchasing investment properties is legit but they will come after you for taxes when you reach retirement and decide to start receiving funds from it.

[REDCLOUD]

That form will do nothing but barbecue yer backside in molasses if you dont have the right asset protection plan in place! The self directed retirement fund or IRA purchasing investment properties is legit but they will come after you for taxes when you reach retirement and decide to start receiving funds from it.

Sort of correct. A Pension or SEP is not a form but a trust taxed as a pension. A self directed retirement fund is usually offered by an employer with limited choices. IRA's have other restrictions. You do not need an asset protection plan but an estate plan to avoid taxes upon maturity of the plan. A simple solution is to gift the accumulated amount into a residual income trust with kids or relatives as beneficiaries while you get the income for life. Life insurance works too. If your estate is under $2,000,000 you can give it to kids and relatives all tax free. With a little strategy you ought to be able to pay no tax at all, right here in the USA.

[mystic one]

Thank you for contacting EDG. I have pasted your questions, with my answers, below. Please let me know if you have any other questions that I can answer.

1.in the united states the w-8 interfaces with the bank as a non-interest bearing account , therefore, would you be able to transfer money from this w-8 account into your offshore account, since you would be opening w-8 account in foreign name, you still maintain your anyomonity?

A W-8 would have to be signed by a non-US person, it can't be signed by a US citizen as far as I know. So I don't think you could even apply for a US bank account with a w-8 if you are an American.

2. it is mentioned that you can hold real estate in an IBC, what do you mean by that, do you mean you can jost hold deed of title in an IBC or can an IBC actually purchase properties in its name??

Both. The IBC can hold title to property as well as purchase property in it's name.

In the us, to build captial or buy houses you need a ssn or ein, if your operating with a statutory typical us corporation.. how would the ibc purchase properties in its name, does it have its own version of a ein/sn ?

As far as I'm aware, a non US company or person can purchase property in the US without the need of an ssn/ein.


i know that would defeat the whole purpose as a ibc is non-taxable , but how do mortgage brokers allow ibcs to buy property..

Mortgage brokers would probably never grant a loan to an IBC. An IBC is private by nature and does not have a credit rating or credit score or any sort of history that anyone else can verify - that is in fact the general purpose of forming an IBC. If an IBC buys property, it would need to do so without using a mortgage.

[mystic one]

With a standard w-8 you might be correct. However, most brokerages now use a w-8BEN. The "BEN" stands for Beneficial Owner. And so the person signing is stating that the beneficial owner (not the entity itself) is a non-US person.

[jjetts4]

I own a mortgage lender. Loans for non-resident aliens (W-8) are welcome. The only drawback is you can only get 80% LTV.

[mystic one]

how do you become a non-resident alien if your currently a us citizen..

is there special paperwork/procedure. you must fill out??

[KiteKaze]

Originally Posted by mystic one

how do you become a non-resident alien if your currently a us citizen..

is there special paperwork/procedure. you must fill out??

If I understand things correctly, a US citizen (as defined in the US Code) is a citizen of washington DC or one of its territorys (guam, etc).

However, any american (e.g. the people of the 50 union states) can become a US citizen if they want. Unfortunately, most people do not know the difference between American and US Citizen.

If you are a non resident alien (with respect to the district of Columbia), then you should proclaim as much and refute all purported contracts that claim otherwise.

Anywise, take my ramblings with a grain of salt as I have not yet taken myself out of the system or had any major tussels with the feds.

The main problems I see are that (a) the masses have had 12 years of government training and (b) the fed is becoming more and more authoritarian.