What if I use a trust or “Super Funds” to acquire the property?

Many Australians have a Discretionary Trust or a Super Fund Trust and use these trusts to acquire US rental real estate.  In most instances, these trusts are considered complex trusts in the US and will file separate tax returns.  They will have to get their own tax identification number (EIN) and are entitled to different exemptions and normally higher tax rates.  In general, these trusts will file on Form 1040NR and not on Form 1041.

Tax issues relating to foreign trusts can be complex, so make sure that you consult your CPA or tax professional.

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