Foreign Tax Credits For Expatriate Individuals...IRS HOW TO VIDEO

Free Video Seminar on Individual Foreign Tax Credits...How To

103 Countries Exchanging Tax Information With USA ....nowhere to run or hide!

Read the following article.  http://www.globalgovernmentforum.com/more-than-100-governments-now-signed-up-to-international-tax-convention/

If you are not filing your US returns time to get started now. We can help.

Six Mistakes US Expatriates Make About IRA Contributions

Wall Street Journal's excellent article on potential problems with IRA s for expatriates.

Estate and Gift Tax Planning for US Nonresidents with US Real Estate and Other US assets

Nonresidents are taxed differently on their property located in the USA than those who are citizens or permanent residents.  They do not get the same exemptions and credits and can without proper planning end up paying a lot of estate or gift taxes.

The table below shows when the IRS considers US property owned by nonresidents to be subject to estate taxes (paid upon death of the nonresident) and gift taxes (when US property and assets are transferred without consideration) during the nonresidents life.
                                                                                   ESTATE TAX                     GIFT TAX

		Estate Tax		Gift Tax
Property Type		Yes	No	Yes		No
Tangible Personal Property in U.S. (e.g., artwork, jewelry)		X		X
Currency in U.S. Safe Deposit Box		X		X
Cash Deposits in a U.S. Bank			X	X
U.S. Real Estate		X		X
Non-U.S. Real Estate			X			X
U.S. Stocks		X				X
Non-U.S. Stocks			X			X
U.S. Government and Corporate Bonds			X			X
U.S. States/Muni Bonds		X				X
U.S. Partnership/LLC Interest		Depends (a)				X
Retirement Plans			X	N/A
Life Insurance Cash Value		X				X
Life Insurance Death Benefits			X			X

(a) The law is not clear and interpretations go both ways with respect to US situs of assets and situs of acutal partnership or LLC interest.

The table below shows the differences between estate and gift taxes paid by a citizen or permanent resident from that which is paid by a nonresident (NRA) including tbe differences in exemptions, and other rules.

	U.S. Person				NRA
Estate Tax Exemption Amount	$5,430,000 per person				$60,000 per person
Top Estate and Gift Tax Rate	40%				40%
Lifetime Gift Tax Exemption Amount	$5,430,000 per person				$0
Annual Gift Tax Exclusion Amount	$14,000 per donee				$14,000 per donee
Gift Splitting Between Spouses	Yes, if both spouses are U.S. people				No
Marital Deduction for Lifetime Gifts	Unlimited if recipient spouse is a U.S. citizen				$147,000 per year if recipient spouse is a non-U.S. citizen4
Marital Deduction for Testamentary Bequests	Unlimited if recipient spouse is a U.S. citizen				$0, if recipient spouse is a non-U.S. citizen, unless assets are held in a Qualified Domestic Trust
Gift Tax Exclusion for Direct Payment of Medical and Education Expenses	Yes				Yes
Portability of Decedents Exemption	Yes				No

If you are a nonresident and need estate tax or gift tax planning for your US assets contact us at ddnelson@gmail.com. 

Most Popular Cities and Jobs for Expats Working Abroad

https://blog.linkedin.com/2016/07/28/Most-Popular-Cities-and-Jobs-for-Americans-Working-Abroad

What facts do I need to include in completing the narrative statement of facts portion of the Form 14653?

Provide specific reasons for your failure to report all income, pay all tax, and submit all required information returns, including FBARs. Include the whole story including favorable and unfavorable facts.

Specific reasons, whether favorable or unfavorable to you, should include your personal background, financial background, and anything else you believe is relevant to your failure to report all income, pay all tax, and submit all required information returns, including FBARs.
Additionally, explain the source of funds in all of your foreign financial accounts/assets. For example, explain whether you inherited the account/asset, whether you opened it while residing in a foreign country, or whether you had a business reason to open or use it. And explain your contacts with the account/asset including withdrawals, deposits, and investment/management decisions. Provide a complete story about your foreign financial account/asset.

The following points address common situations that may apply to you

We realize that many taxpayers failed to acknowledge their financial interest in or signature authority over foreign financial accounts on Form 1040, Schedule B. If you (or your return preparer) inadvertently checked “no” on Schedule B, line 7a, simply provide your explanation.

We realize that some taxpayers that owned or controlled a foreign entity (e.g., corporation, trust, partnership, IBC, etc.) failed to properly report ownership of the entity or transactions with the foreign entity. If you (or your return preparer) inadvertently failed to report ownership or control of the foreign entity or transactions with the foreign entity, explain why and include your understanding of your reporting obligations to the IRS and to foreign jurisdictions.

If you relied on a professional advisor, provide the name, address, and telephone number of the advisor and a summary of the advice. Also provide background such as how you came into contact with the advisor and frequency of communication with the advisor.

If married taxpayers submitting a joint certification have different reasons, provide the individual reasons for each spouse separately in the statement of facts.

Owe Taxes? These Tips Can Help

Owe Taxes? These Tips From IRS Can Help

Better Pay Your Mexican Taxes on your Mexican Rental Income

Under Mexican law,  all income generated from properties located within Mexican territory is subject to taxation, even if the owners are foreigners and even if all funds are collected in accounts located outside Mexico.   For many years it has been a major issue for both Mexican tax authorities and individuals attempting to comply.  For years a Federal Taxpayer ID was required to file and pay the tax.   In order to obtain this tax ID one needed to be a resident of Mexico.    This was lose-lose for both the authorities and the foreigners who were willing to pay but baffled by the issues involved to “get legitimate”.

After more than five years of Settlement Company® dialogue with Mexican tax officials, a resolution was made in which the foreign property owner could appoint a Mexican company to pay his or her taxes and dispense with all other formalities.  This has become reality!   Mexican authorities are now looking seriously to collect this long-neglected source of tax revenue and foreigners not only are lining up to pay but also to receive the receipts for payment of the taxes which can then be credited against taxes paid in their native country under the terms of the NAFTA treaty.  Remember! no double taxation is permitted under the terms of the treaty!

If you have a rental property in Mexico contact us for details.   ddnelson@gmail.com