Thread: Arbitrage income from rental property
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Old 03-03-2006, 03:54 AM
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Default Arbitrage income from rental property
As far as US Tax law, the rental property will probably be moved into a Limited Liability Company and income would be paid to the LLC, I need to check with a tax accountant but I believe there is an exclusion on the first $80,000 of foreign income as long as you live outside the US for 355 days out of the year. I am almost certain that rental property income will incur some type of US Federal Tax so it doesn't make sense to channel the money into NZ and pay another 33% tax on top of that. I don't have any state income tax but there is property tax in the state I live.

I'm not sure how long I will keep the US property. For now, I want to keep it as a safety net as something that keeps generating income until I find a good paying job in NZ. We have kids so if they decide to come back to the US to attend University we can also let them live in it while in school and then sell it. The house doesn't have a mortage on it.

In leiu of being able to receive adequate credit to buy a house, is it possible to pay for a home using a credit card (Visa/Mastercard/Amex)? Or at the very least, put a sizeable down payment ($50k) on a home with a credit card?
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