Market Value: $3,000,000
Original Purchase price: $1,000,000
Original Mortgage Amount: None
Interest Rate: Not Applicable
Mortgage Term: Not Applicable
Term remaining: Not Applicable
Amount remaining on mortgage: Not Applicable
Gross Rents: $14,000 per month
Principal and Interest (the P&I of your PITI - should match with the above info): Not Applicable
Taxes and Insurance (the T&I of your PITI): Annual Property Tax is $17,790, i.e. $1,482.5 per month on average; insurance is $148 per month
HOA costs: $3,810 per month
Deferred maintenance notes: Not applicable
Anything else special or unique in regards to the numbers of the property (not the property itself; things such as city assessments, back taxes, special costs due to unique features of the property, etc. etc.):
This is a condo in California that was used as a vacation home when I lived in the United States. I no longer live in the United States.
The condo is held by a BVI corporation. Therefore, rental proceeds would be subject to 21% federal tax and 8.84% state tax on the net income. Then, an additional 30% "branch profit tax" would apply to the remaining amount.
But if I rent, after two years I could do a 1031 exchange for a nicer property to rent out. Then, if I return to live in the US in the future, I'll have the option of moving into that nicer property. This way, I would have upgraded to a nicer property without having paid capital gains tax during the process.
If I sell now, sale proceeds would be subject to 21% federal tax and 8.84% state tax on the capital gain. (I believe "branch profit tax" could be exempted under the "termination exemption," but would be grateful if anyone could shed light on this issue as well.)
I am a non-resident alien for US tax purposes. Therefore, any sale or rental proceeds I get that I invest in the US securities market (the only place I would invest any excess cash) would be subject to no capital gain tax, but a 30% flat tax on the dividends.
Thank you very much in advance for any feedback you may have.