Category Archives: Uncategorized

 

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 …

Do I need to report a superannuation fund on my FBAR?

While the FBAR rules require that all financial accounts be reported on an FBAR if the taxpayer has ownership of or interest in accounts with are over $10,000 in aggregate at any time during the tax year, it is slightly unclear whether the IRS considers a Superannuation to be a foreign financial account which needs to be reported.  However, at …

The single most important thought that preoccupies the mind of a person who is nearing the end of his or her working life is how best to spend their retirement years. Most people dream of an idyllic location where they can constantly have the sun on their backs and wind blowing on their faces. That might mean relocation to another country. Apart from considering the political stability, safety and security of …

If you are self-employed, the rules are generally the same if you are living in the US or abroad.  That means that self employed persons need to pay Social Security tax and Medicare tax on the total earning for self-employment over $400.  For the current year, the maximum amount subject to social security taxes is $117,000.  There is no maximum amount for the Medicare portion.

If eligible, an expat taxpayer can …