Cresco Academy · The American Client Desk
Five Things to Raise Before Your American Client SignsAsk these in the first meeting. Not after the reservation form.
1
Which US state do you live in?
This changes the whole conversation. Florida charges nothing on the rent at state level, so Dubai is genuinely tax free to them. California takes up to 13.3%. New York State and City combined reach roughly 14.78%. Neither California nor New York gives a lower rate on the gain when they sell.
2
Are you selling a US property to fund this?
If yes, stop and say this. IRC section 1031(h) means US property and foreign property are not like kind. There is no 1031 exchange into Dubai. The gain on their US sale is taxable this year. Say it before they sign, not after.
3
You know the rent is still taxed in America?
Dubai charges them nothing. The IRS does. Rental income goes on Schedule E. There is no US to UAE tax treaty, and because the UAE levies no tax there is no foreign tax credit to claim. The absence of UAE tax is exactly what removes the offset.
4
Has anyone mentioned the reporting forms?
FBAR on FinCEN Form 114 if their UAE accounts pass the threshold, and possibly Form 8938. The penalties are not proportionate to the tax at stake. Raise it early so their accountant is not surprised.
5
Do you have a CPA who has filed foreign rental property?
If they say no, that is your opening, not your problem. Offer the introduction. The agent who protects the client keeps the client. And depreciation runs 30 years on foreign property, not 27.5, so any model they built on a US schedule overstates the return.
What you must never say
- “You can 1031 into Dubai.” You cannot. Section 1031(h) blocks it and the client finds out in April.
- “Dubai is tax free, so you pay nothing.” It is tax free in Dubai. They are still American and America follows them.
- Anything that sounds like tax advice. You are not their adviser. Raise the question, name the form, hand it to a CPA.
There is a lot more where this came from.
The full programme covers all eight modules, including the client script, the CPA handoff and the compliance module on where your line sits. Free for the founding cohort of licensed UAE brokers.
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Cresco Real Estate LLC · Licensed UAE brokerage, RERA ORN 34288 · Dubai head office, US office in Los Angeles
crescorealestate.ae/american-client-desk · The full programme, free for the founding cohort
General information about published law, current as at 24 August 2026. Not tax or legal advice. Rates and thresholds change. Verify against the issuing authority.
crescorealestate.ae/american-client-desk · The full programme, free for the founding cohort
General information about published law, current as at 24 August 2026. Not tax or legal advice. Rates and thresholds change. Verify against the issuing authority.