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Ely
Ely, Lawyer
Category: US Law
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Is there a tax treaty between BVI and USA How does capital

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Is there a tax treaty between BVI and USA
How does capital gains treated on sale of a 25 years 'held' residential property by a BVI limited liability company "foreign entity' in California USA- whose beneficial owner is a Foreign Alien?
What the the benefits of owning a USA property in British Virgin Islands by Foreign Alians?
Submitted: 10 months ago.
Category: US Law
Expert:  Ely replied 10 months ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

Is there a tax treaty between BVI and USA

YES. See HERE.

How does capital gains treated on sale of a 25 years 'held' residential property by a BVI limited liability company "foreign entity' in California USA- whose beneficial owner is a Foreign Alien?

Generally, the foreign alien corporation would not be taxed in USA since it maintains no office or presence in USA. It would be taxed in BVI, however, for the income.

What the the benefits of owning a USA property in British Virgin Islands by Foreign Alians?

There is no benefit per se, because while the BVI company owns the US property, it must still pay all local taxes associated with the property. It the property is later sold, the BVI company pays taxes on the income - in BVI. Not USA.

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Customer: replied 10 months ago.
Thanks for the clarification.
Q: Than what's the reason the Tax authorities in USA deduct 10% withholding tax on the gross sale value?
And another3.5% as State of California tax?
Customer: replied 10 months ago.
Hi Ely
im Mr Patels realtor in Califirnia and Irs holds 10% withholding tax on close of escrow.
Cali has a state tax of 3.3 as well.
I dont think they care if its a foreign co.
Thanks

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