Virginia La Torre Jeker, J.D. — US tax matters affecting international clients
Former US citizens or long term permanent residents who are giving up (or previously gave up) their US status, have far more than just the "Exit Tax" to worry about. They must also consider the impact the expatriation will have on their US family members and other intended US beneficiaries. I'm still waiting for more … Continue reading Gifts & Bequests from Former Americans – Beware that Trojan Horse
My earlier blog post gave a head’s up to married couples about US tax issues that can arise when assets are owned jointly with a spouse who is not a US citizen. A follow-up blog post detailed the US Gift tax rules that apply when assets are held jointly with right of survivorship (WROS) by a US/non-US citizen … Continue reading Estate Tax Nightmare: Joint Ownership of Property with A Non-US Spouse
My earlier blog post gave a head’s up to married couples about jointly owned assets when one spouse is a non-US citizen. Virtually every aspect of the US tax rules are impacted by such joint ownership - income tax, gift tax, estate tax, tax information reporting and FBAR reporting under the Bank Secrecy Act. Today's post provides … Continue reading LOVE SCHMUV! Just K.I.S.S. (Keep It Separate Sweetheart) – US Tax Perils of Joint Ownership
I know many married couples of mixed nationality, when one spouse is not a US citizen and the other has such citizenship. Without due consideration to the US tax issues, spouses often hold title to bank accounts, brokerage accounts and real property as joint tenants with right of survivorship. Joint ownership often comes about even … Continue reading A Big Mistake – Joint Ownership of Assets With Your Non-US Citizen Spouse
Part I of this blog post examined some of the rules regarding the US estate tax and how it applies to non-US persons (noncitizen/nonresident). Unfortunately, the US estate tax often catches the nonresident alien family by surprise and when it does, it bites hard. Remember, the "nonresident alien" will include an individual who has expatriated (e.g., … Continue reading Foreign Individuals: US Estate Tax Reform Passed You By (Part II)
Prior to the actual passage of the “Tax Cuts and Jobs Act” (TCJA) on December 22 2017, there were some high expectations that the disparity in the US estate tax exemption for US and non-US persons would be eliminated, or that the US estate tax itself would be repealed. Unfortunately, neither of these hoped-for events … Continue reading Foreign Individuals: US Estate Tax Reform Passed You By (Part I)
Part I of this blog post explained how Form W-8BEN is used for so-called Chapter 3 income tax withholding purposes covering topics such as the types of income subject to US-source withholding when paid to a foreign (non-US) person; exemptions, length of time for validity of the Form. It also provided an overview of how … Continue reading PART II – Forms W-8BEN & W-8BEN-E: What Are They Used For? Which One Must I Complete?
Lately, I have been fielding many questions about Form W-8 BEN, it’s brother, Form W-8BEN-E, and related family members Forms W-8ECI, W-8IMY, and W-8EXP. What are these things? And why are they giving you such a headache? Let’s set out some basics one step at a time. Today’s blog post will detail all the nuances … Continue reading PART I: What is Form W-8BEN, What is it Used For, Must I Complete It?
As many of my readers may know, there is a 30% withholding tax imposed on certain payments to foreign persons (whether individuals or entities) by US-payors. The 30% rate may be reduced or eliminated if a relevant treaty can apply. Withholding is required only for particular types of income provided the income has not been … Continue reading “US Source” Income – What Is It? Why Should I Care?
Many non-US individuals come to me with questions concerning their liability for US taxes - income, gift, estate tax. I find there are some general misunderstandings - hardly surprising given the complexity of the US tax system. Let's review! Before we talk about foreign (non-US) individuals, let's be clear: US citizens are always treated as … Continue reading Foreign Nationals – Am I “Resident” for US Estate & Gift Tax Purposes?
Virginia - US TAX TALK 