How Estate and Tax Laws Treat nonresident Aliens’ U.S. real Property differently
Many of you in Florida, New York, California, and a good many other states have friends, neighbors, and acquaintances who are not U.S. citizens but who own U.S. real estate. If you counsel nonresident aliens (NRAs) on real estate matters, it is essential to understand how U.S. estate and income tax laws treat NRAs differently from citizens and U.S. residents. When an NRA owns a piece of U.S. real estate, the rules become more difficult and, if the NRA happens to die, then the rules become a lot more difficult. This piece briefly looks at those rules.