Applying for the Florida Homestead Exemption Can Trigger U.S. Tax Residency
Florida Homeowners have until March 1 to apply for the Homestead Exemption on Form DR-501 to exempt about $75,000 of the value of their home from property taxes. However, recent immigrants or “temporary” residents with assets outside the U.S. should carefully weigh their options before applying. This is because a foreigner becomes a U.S. resident for estate, gift and generation skipping [...]
Read More →Swiss Bank Prosecuted Using Growing IRS Database of Offshore Information
This prosecution is an example of how the U.S. government is using its expanding database of information collected from whistleblowers, foreign governments, advisors, banks and over 30,000 U.S. taxpayers who have already come clean. Swiss bank Wegelin is charged with helping U.S. Taxpayers hide over $1 billion from the IRS. Any deal Wegelin makes to avoid prosecution will likely include giving up [...]
Read More →U.S. Tax and Legal Consequences for Foreign Investors and Potential Residents (Seminar Outline)
Foreign investors and potential residents must understand that U.S. tax residency can occur, whether or not they have permanent residence for immigration purposes.
Read More →Offshore Tax Amnesty Reopened Today
The Internal Revenue Service just announced the reopening of a special voluntary disclosure initiative designed to bring offshore money back into the U.S. tax system and help people with undisclosed income from hidden offshore accounts get current with their taxes. The IRS decision to reopen this special disclosure initiative follows continuing interest from taxpayers with foreign accounts. Over 33,000 tax payers came forward during [...]
Read More →The Truth About 1031 Exchanges
A 1031 Exchange is a method by which a property owner “trades” one property (“relinquished property”) for another of equal or greater value (“replacement property”) without having to pay any taxes on the transaction. In an ordinary sale transaction, the property owner is taxed on any gain realized by the sale of the property. In a 1031 Exchange, however, the [...]
Read More →Green Card Holders May Not Yet Be Domiciled in the U.S. for Estate and Gift Tax Purposes
If you are considering moving to the United States, you need to consider your tax status for both U.S. income tax purposes and U.S. estate and gift tax purposes.[1] Even if you have already obtained lawful permanent residence status (your “Green Card”), you may not yet be subject to U.S. estate and gift tax as a U.S. “domiciliary”. Depending on [...]
Read More →So You Have Unreported Foreign Bank Accounts and Income, Now What?
With limited exceptions, every American citizen, permanent resident and even residents for tax purposes with direct or indirect ownership or control over a foreign financial account must report those accounts on Treasury Department form TD F 90-22.1, more commonly known as the FBAR [Foreign Bank and Financial Accounts Report]. The form is due June 30 for accounts held in the [...]
Read More →Life Insurance Proceeds can be Taxed up to 55% if not Structured Properly
Life Insurance is an excellent, asset-protected tool for estate planning. For example, if your estate will contain substantial “hard” assets, such as business interests or real estate, the cash proceeds of a life insurance policy can allow your heirs to pay your estate taxes without having to liquidate any assets. And your beneficiaries can receive the proceeds of your life [...]
Read More →Reducing Taxation for Foreigners Investing in U.S. Real Property
Now is perhaps a better time than ever to invest in U.S. real estate for both income and long-term appreciation. However, as can be expected, the U.S. seeks to tax the appreciation on these properties when they are sold and tax their value when transferred by gift or upon death. This tax burden falls heavier on foreigners, because foreigners don’t [...]
Read More →Independent Contractor or Employee?
If your business uses independent contractors as part of its work force, then depending on the circumstances, the IRS might reclassify these workers as employees. Such a reclassification could expose your business to employment taxes and penalties. In addition, your business might be responsible for retroactive fringe benefits for any reclassified workers. One of the best ways to avoid this [...]
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