BonaireTalk Discussion Group
Moving to Bonaire: Buying a Home in Bonaire?
Moving to Bonaire:
Buying a Home in Bonaire?
HGTV's House Hunters International is coming to Bonaire!
If you've bought a home in Bonaire in the past 2 years, we'd like to put your story on TV! HGTV's House Hunters International is looking for energetic individuals, couples and families who are passionate about their search for a new home or vacation property in Bonaire.
This hit series takes viewers behind the scenes with a real estate agent to decide which international home is best for you! We’re looking for upbeat personalities and interesting stories. If this sounds like you, apply now!
Send an e-mail to email@example.com, and we’ll send you additional information.
| By Ruth van Tilburg (Extraordinary BonaireTalker - Post #1209) on Friday, January 8, 2010 - 2:19 pm: |
Cool! HGTV is my TV's 'default' channel setting. :-D
| By *Tink* (Extraordinary BonaireTalker - Post #1709) on Friday, January 8, 2010 - 6:38 pm: |
Cool! I love HGTV House Hunters! Will you please keep us posted if you find someone and when it airs?
Sure, I'll definitely keep the board posted. And please feel free to spread the words to any Bonaire friends that aren't on the messageboard or any friends who have relocated to locations other than Bonaire. Thanks!
| By Pietri Hausmann (Experienced BonaireTalker - Post #325) on Friday, January 8, 2010 - 8:30 pm: |
gosh ruth .. it is such a pity that our homes don't qualify .. their loss .. sigh ..sigh .. sigh ..
| By lisa z (Experienced BonaireTalker - Post #331) on Tuesday, January 26, 2010 - 2:10 pm: |
If I win the lottery, I'll be up for buying a house on Bonaire. Maybe even two.
| By Jim Richardson (New BonaireTalk Poster - Post #1) on Tuesday, March 16, 2010 - 8:34 pm: |
We are considering buying a property on Bonaire as a rental property using the rental income to finance our vacations. We have not been able to get a clear picture of our tax liability to Bonaire and the USA.
Can anyone who has bought property on Bonaire as a non-resident and rented the property tell us how they handled the tax situation?
We have heard that both Bonaire and the USA want to tax our worldwide income and we can't afford double taxation.
We have been visiting Bonaire each year for over 10 years and would consider moving to Bonaire in the future for retirement.
| By Bruce Zavon (Experienced BonaireTalker - Post #111) on Thursday, March 18, 2010 - 2:11 pm: |
The general tax structure for a US non-Bonairian resident directly owning a single rental property here is as follows. Please note, this is VERY general advice and your particular situation may differ in many ways, so please consult a tax professional for your particular situation. (There were 4 caveats in the first sentence!)
Bonaire side: Gross rent less 35% less allocated mortgage interest. No other deductions. No capital gain on sale. Annual tax return (Aangiftebiljet B) required.
US side: Rent less all business related expenses, interest (possibly) and depreciation. Net rental losses subject to passive loss limitations. Depending upon level of owner's involvement in management, the loss may be allowed currently or (more likely) carried forward until income or disposition. If personal use is more than the greater of 14 days or 10% of days rented, no current loss allowed under the vacation home limitations. Income reported on Schedule C or E depending upon average rental period. Gain on sale fully taxable as a capital gain unless the home became your principle residence.
US would allow a foreign tax credit for Bonaire tax paid.
Hope that helps.
| By Jim Richardson (New BonaireTalk Poster - Post #2) on Thursday, March 18, 2010 - 6:41 pm: |
I was afraid I needed to pay Bonaire tax on my "Worldwide" income, but from what you said Bonaire only wants taxes from the rental income.
The IRS is another matter, they want their share of my rental income too, but they allow a credit for the taxes I paid to Bonaire.
So I file a return in Bonaire and I file a return in the US.
I pay the tax on ONLY rental income to Bonaire.
I figure out my US tax on my worldwide income which includes the Bonaire rental income.
I am allowed a credit towards my US taxes for the taxes I paid to Bonaire.
Am I understanding what you said correctly Bruce?
| By Bruce Zavon (Experienced BonaireTalker - Post #113) on Thursday, March 18, 2010 - 6:53 pm: |
Yes, you understood perfectly. Until you move here and become a resident, you only pay Bonaire tax on Bonaire source income. You pay on worldwide income in the US as long as you are a citizen, no matter where you live.
The foreign tax credit is not a guarantee since the US calculates your foreign (non-US) source income differently than Bonaire does. So you could end up with Bonaire tax on income but a loss for US purposes. In this case there's no FSI so no FTC. You can elect to deduct the tax in the US in this case or carry it forward as a credit to use in future.
Keep in mind that tax laws change, and Bonaire's may change in unforeseen ways in 2011. As soon as I know for sure what the laws will be I'll post something.
| By Jim Richardson (New BonaireTalk Poster - Post #3) on Friday, March 19, 2010 - 10:41 am: |
As a non-resident property owner do I owe the daily tourist tax if I occupy my own property?
If I rent my property, and stay elsewhere on Bonaire do I owe the tourist tax?
If I use a home equity loan back in the US to finance the property can I deduct the interest payments from my Bonaire tax?
If I use my property for vacations and also rent it can I still deduct my mortgage interest from 65% of my rental income for my Bonaire tax?
Sorry for all these questions but I have looked elsewhere and the only place I have found answers is on Bonaire Talk.
I would think someone on Bonaire would start a FAQ for people like me who are considering buying property in Bonaire.
If anyone knows of a FAQ that answers my questions Please point me in that direction.
Thank You for all your help.
| By Chris (Experienced BonaireTalker - Post #160) on Friday, March 19, 2010 - 11:27 am: |
The only person who can answer these questions ( very likely in a private conversation)would be Bruce Zavon.......He is a tax advisor on the island.......
| By Jim Richardson (New BonaireTalk Poster - Post #4) on Friday, March 19, 2010 - 12:00 pm: |
I just got off the phone with Bruce. He was able to answer all my questions. I'm amazed that this basic tax information is not available on the internet.
I hope Bruce will post the answers to my questions so everyone will benefit.
I would like to meet others who have moved Bonaire so they could share their experience with me and help me avoid making any foolish mistakes.
| By Bruce Zavon (Experienced BonaireTalker - Post #114) on Saturday, March 20, 2010 - 6:02 pm: |
Thanks Chris. And yes Jim and I did have a good private conversation.
It's really not possible to put up an FAQ of all the tax rules of Bonaire and how a US person will be taxed here and back in the US. There are so many variations and everyone's facts are different. Wish I could simplify it all but it really isn't doable.
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