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Hello Everyone,

This is my first post, and I am grateful for this amazing forum. I just married a French woman, we reside in France. I am paying taxes in France, however, I was wondering if I would be taxed the high real estate tax in France if I was to purchase an investment property in the United States? Of can I just pay taxes on that in the US since this is where the physical property is located?

Thank you for any assistance.
 

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As a US citizen, you are always subject to US taxation and should be filing US tax returns. That said, you wind up declaring your worldwide income to both the IRS and to the Fisc (French tax authority). Normally, you pay most taxes on real property (i.e. land and buildings) to the country where the property is located. The French tax declaration has a specific form for detailing your foreign source income (after you declare it on the regular French forms) and there are specific ways to indicate to the Fisc what type of income it is so that they can apply the appropriate credits, allowances, etc.

Given that you haven't yet purchased the property, you won't have to declare it until April/May of the year following your acquisition - so you have some time to either research or to talk to the tax office locally about how to declare a US property on your French forms.
 

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Thank you Bevdeforges, for the comprehensive response. This clears up a lot of general questions I had and will help inform my deeper research, prior to my purchase.
 

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Perhaps the OP was referring to the impôt sur la fortune immobilière (IFI). The information on the IFI can be found here

It is worth noting that

"Vous êtes soumis à l'impôt sur la fortune immobilière (IFI) si la valeur nette de votre patrimoine immobilier excède 1,3 million €. Ce patrimoine comprend tous les biens et droits immobiliers détenus directement et indirectement au 1er janvier. Certains biens sont partiellement ou totalement exonérés. Certaines dettes peuvent être déduites de la valeur de votre patrimoine avant imposition."
 

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bryanslade55 -- Just a thought. My son is a professional real estate investor and he puts each of his investment properties in separate LLCs, in the state that the property is located (he has properties in multiple states.) The LLCs are wholly owned by a WY real estate holding LLC (to qualify for "Real Estate Professional" status, with the IRS.) He has elected to treat the LLCs holding the RE as "disregarded entities," all gains/losses thus flow to the holding LLC (one tax return for everything.) In your case, you might consider making the holding company a C Corporation (preferably in WY, NV, or DE.) That way, you would only actually own shares in the C Corporation, not the RE directly. You'd also gain asset protection (RE is inherently risky, liability wise.) I personally would never hold investment property in my name in the U.S. -- the U.S. is just too litigious! Good luck with your investing. Cheers, 255
 
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