Monthly Archives: November 2015

 

The IRS now may have power to revoke your passport

Americans who owe lots of money to IRS and have received a notice they they could have their passports revoked by the State Department or blocked from receiving new passports. Both the Senate and the House has approved the bill and is now awaiting final approval from a conference committee at the time of writing this article. …

This infographic will help answer an questions about the FBAR.

What is the FBAR?

FBAR stands for Foreign Bank Account Report, and it is a mandatory form for some taxpayers with Foreign financial accounts.

Who Must File an FBAR?

Any US Citizen who owns or controls one or more …

 

Ever since the launch of Airbnb in 2008, the company has been used by ever increasing travelers to find suitable accommodations even in the remotest part of the world. For savvy travelers it is a platform to find an alternative place to stay. However, the property renters find themselves in a maze of complicated tax implications. Every year Airbnb reports to IRS the rental payments sent to their …

The Foreign Tax Credit is a credit given to taxpayers to help prevent double taxation.  When a taxpayer pays taxes to another country then the Foreign Tax Credit can be used to offset the taxpayers US tax liability.

The Foreign Tax Credit (FTC) is most useful for a taxpayer who live in a country with a high tax rate and therefore paid a larger percentage of taxes to …

Inforgraphic: Do I need to file a tax return in 2015?

The first step to filing a tax return is determining whether you need to file a tax return altogether.  The first question to ask is whether you have self employment income over $400.  Any person who …

2555-EZ

When can I use Form 2555-EZ?

The Foreign Earned Income Exclusion allows taxpayers to exclude their foreign earned income up to $100,800 in 2015 and $99,200 in 2014.  In order to use the Foreign Earned Income Exclusion, the taxpayer must file Form 2555 or Form 2555-EZ along with Form 1040,  the year end tax return….

 

For individuals who are foreign to the United States (nonresident aliens for U.S. tax purposes), purchasing and renting U.S. residential and commercial real estate will require the filing of a US tax return 1040NR.  A nonresident alien should consider the following issues before, during and after purchasing rental real estate directly in the United States.

Owning the Property as an Individual or Single Member LLC (SMLLC): An SMLLC is a limited …

Am I Eligible for the Child Tax Credit While Living Abroad?

If eligible, a taxpayer can receive a $1,000 credit for each qualifying child. This credit can be claimed even if the taxpayer does not owe any money. This means the IRS may send you a check for $1000 even if you do not owe any taxes. And it is possible to receive this check while living abroad.

In order to claim …

It may be advisable to buy property in a corporation. It saves you from the hassle of filing separate business tax returns, avoids the accounting fees and also limits your liability since for tax purposes an individual is considered a “disregarded entity”. However, bear in mind that any foreign income earned through the property such as rentals are subject to US taxation. Also, ensure …