A friend of mine and myself purchased and built a 900sqft 2/2 in a community in Nicaragua. All payments over the course of the build were made in 2017 except the last 10% or so which will be sent in the next 6 weeks.
In order to get in on this project at the introductory price, my friend and I did not have time to set up an LLC to purchase it so the land and house are in both of our names.
We already have a lawyer drawing up an agreement between the two of us (shared costs, shared income, successorship in case of death or other emergency).
As US Citizens, the minute we take in $1 in rental income we are subject to US Income tax.
My two questions are:
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Do we form an LLC together that invests in our foreign rental property and declare the taxes and losses that way, or do we just split everything on our personal taxes?
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Do we need to do anything on our 2017 taxes or can we wait until next year to put everything on 2018 taxes since the closing will be in 2018?
Thanks!
Submitted February 09, 2018 at 05:23AM by rhymeandreasons http://ift.tt/2BO9KIV
