Are You Planning to Buy High End Residential Real Estate?
Even though this post is not directly about taxes I wanted to timely share information that could, under certain circumstances, affect a segment of the population as a result of a recent action by a bureau of the U.S. Treasury. Don’t worry, I’ll keep this article short.
The Financial Crimes Enforcement Network (FinCEN) has announced Geographic Targeting Orders (GTO) that will temporarily require U.S. title insurance companies to identify the natural persons behind shell companies used to pay “all cash” for high-end residential real estate in six major metropolitan areas. FinCEN remains concerned that all-cash purchases (i.e., those without any bank financing) may be conducted by individuals attempting to hide their assets and identity by purchasing residential properties through limited liability companies or other opaque structures. So to better understand this vulnerability, FinCEN issued similar GTOs earlier this year covering transactions in Manhattan and Miami-Dade County, Florida. The GTOs announced yesterday will expand upon the valuable information received from the initial GTOs. You can see the complete release here——> https://www.fincen.gov/news_room/nr/pdf/20160727.pd f.
So, I promised that I would keep this post short. But, I hope that this information is helpful to those potentially affected.
Bruce – Your Host at The Tax Nook
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