Real Estate as a tax hedge

Posted By on Nov 6, 2019 in Events |

Delphi Network Salon (location details below intro) 

Brad Schmidt and Greg Lyon on their experience investing in US real estate as a tax hedge. November 14, 7.30pm. 

Brad Schmidt CEO and founder Makoto Investments
Greg Lyon president and founder Gregory Lyon, Inc. 


Boardroom of Vega Global Japan (With thank to the CEO Richard Johns) 
5F Nihonbashi-honcho Square,
1 Chome-2-6 Nihonbashi-honcho, Chuo-ku,
Tokyo-to, 103-0023 Japan

Map link:

Tel: 03-4578-3400 (scroll down for different kinds of access details, including Metro)

Cost: 2,000 members; 5,000 non-members. 

DN members Brad Schmidt and Greg Lyon are both seasoned entrepreneurs with successful existing businesses, in consulting and high-end office furniture respectively. They have both been taking a close look at the numerous advantages offered by investing in US real estate, and have started to offer their expertise to clients. 

This interest in tax minimization is obviously not coincidental. Many steps by the Japanese government indicate that it is introducing ever more oppressive taxes on groups it feels are undertaxed, partly under pressure from the OECD, which is concerned by the high levels of government debt seen in many countries since the Great Financial Crisis of 2008-9. 

These targets include Japanese SMEs and wealthy Japanese and foreign residents in Japan. Of course, it also includes Japanese consumers, who are being hit by the 2 percentage point rise in the consumption tax. 

Japan veterans are especially incensed by the fact that since 2017 permanent residents have to pay a 55% inheritance tax on their global assets. Even if they decide to relocate back to their home country, they will be eligible to pay this tax for the next 5 years. Some foreigners are therefore taking the drastic step of giving up PR status, or moving out. 

Adding insult to injury is the exit tax on financial assets, which starts in 2020, under which long term foreign residents will have to pay 15% tax on financial assets over USD 1 million if they leave Japan. Note this does not include real estate

It’s therefore not surprising that long-term foreign residents (and wealthy Japanese, of course) in Japan are looking for tax minimization strategies, and that is the purpose of this DN Salon. 

A lower income does not just reduce income tax but also ward and prefectural tax, enterprise tax for the self-employed, and health insurance contributions. 

Brad and Greg will take us through the details of their experience buying real estate in America. Neither are professional real estate investors or tax accountants. But they have both gone through the gruelling process of finding and buying assets, taking out mortgages, dealing with brokers, juggling multiple currencies, poring through the tax and legal implications, finding renters, etc. They therefore have invaluable hard-won, hands-on experience. 

As ever in the Delphi Network, the idea is for members to explain their errors and successes to fellow members, to help them reduce the former and enhance the latter! 

Any high-income, long-term foreign resident or Japanese national will find this a valuable session. 

Please click yes to register, or no to avoid getting updates. Let me know if you would prefer not to receive these calendar invites altogether. 

Please note places are limited. DN members get guaranteed access, so unfortunately it may not always be possible to seat Non-DN members. 

Light food and the renowned DN selection of substantial wines will served! 

DN Salons and Summits follow “Chatham House rules”. This means they are off-the-record. Attendees may repeat what they have heard but they should not attribute the comments to any person or company, to avoid embarrassment. 

7.30pm Doors open, networking and light food
7.50 speech
820 Q&A