Colorado Lawyer: Tax and Estate Planning for Nonresident Real Estate Owners

In a recent article by Colorado Lawyer, Rimon Partner Brent Nelson and co-author Griffin H. Bridgers, discuss tax implications surrounding nonresident ownership of real estate in Colorado, addressing important state and federal tax and estate planning concerns for individuals.

Colorado is blessed with tremendous scenery, activities, and opportunities. It’s no surprise, then, that many non-Colorado residents own real estate here. Nonresident ownership is buttressed by Colorado’s strong international economy, which generated over $1 billion in commerce with each of Canada and Mexico alone in 2018 and attracted over 800,000 non-immigrant business and vacation travelers that same year.1 Nationally, investors from China, Canada, Mexico, India, Brazil, and Colombia—the top six jurisdictions for foreign investment—invested $20.7 billion from April 2019 to March 2020 in residential real estate.2 Those foreign dollars find their way to Colorado along with significant sums from non-Colorado-based American investors. Colorado has no restriction on foreign ownership of real estate, extending to investment from within and outside the United States. Many nonresident visitors to Colorado become real estate investors. For those owners, important state and federal tax and estate planning concerns can arise. This article introduces those concerns, focusing on individuals, and then offers some practical solutions for resolving them. While similar rules apply to foreign entities, those are not the focus of this article.

Read the full article here.

A select group of U.S. and international individuals, families and financial institutions work with Brent Nelson on their complex tax, estate planning, and family business matters.  Collectively, Mr. Nelson’s clients live, invest, or have family on every inhabitable continent in the world…Read more here.