My client wants to buy a rental property in Florida (good returns).
He is planning on buying it over there via an LLC. Normally the profits would pass through to the individual. In which case there wouldn't be much tax to pay because of the mortgage interest relief rules and depreciation is allowable over there. Hence he would pay tax in the UK and take a credit for any US taxes (small).
My questions is: it is poossible to elect in the US for an LLC to be taxed as a corporation, so the profits do not flow through to the owner. I am guessing if after tax profits stays within the LLC, there is nothing to report in the UK.
I intend to send him to a UK based US tax specialist, but has anyone had a similar situation?