{"id":473,"date":"2012-02-02T08:41:37","date_gmt":"2012-02-02T08:41:37","guid":{"rendered":"http:\/\/www.uspropertyownersabroad.com\/?p=104"},"modified":"2012-02-02T08:41:37","modified_gmt":"2012-02-02T08:41:37","slug":"what-debt-obligation-is-property-within-the-us","status":"publish","type":"post","link":"http:\/\/www.flottco.com\/accidentaluscitizen\/what-debt-obligation-is-property-within-the-us\/","title":{"rendered":"What \u201cDebt Obligation\u201d is Property within the US?"},"content":{"rendered":"

This week, we will start with a simple issue.\u00a0 Say you invested in Treasury Bonds.\u00a0 Did you know that it property within the US for estate tax purposes, even if you are a nonresident noncitizen of the US?\u00a0 Debt obligations of a US person are categorized as property within the US for estate tax purposes.[1]<\/a>\u00a0 A US person in this case includes individuals, corporations, partnerships, trusts and estates.<\/p>\n

There are several categories of debt obligation \u2013 notes, bonds, loans, leases, or some other instrument (is this a technical term?) owed by one party to another.\u00a0 The Internal Revenue Service looks to the issuer to determine if the obligation is property within the US.<\/p>\n

The Internal Revenue Code states \u00a0that a debt obligation is property within the US if it is issued by the US government, \u00a0the United States, the District of Columbia or any political subdivision thereof.[2]<\/a><\/p>\n

For example, Sam, our foreign citizen, invests in US Treasury Bonds.\u00a0 Before the bonds mature, Sam dies.\u00a0 As you look through Sam\u2019s records, you discover Sam\u2019s investment.\u00a0 Since the US Treasury issued the Treasury Bonds, Sam has property within the US for estate tax purposes.\u00a0 However, if Foreign Country had issued the Treasury Bonds, you do not have property within the US.<\/p>\n

Okay, you may think that this is simple enough.\u00a0 Debt issued by US government equal US property for estate tax purposes.\u00a0 \u00a0However, \u00a0there are exceptions to the rule \u2013 one for deposits and one for domestic corporations.<\/p>\n

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[1]<\/a> IRC \u00a72104(c).<\/p>\n<\/div>\n

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[2]<\/a> Id.<\/em><\/p>\n

IMPORTANT NOTICE TO READERS<\/strong><\/p>\n

The information contained on this blog is not legal advice. \u00a0It is provided only as general information, and may or may not reflect the most up-to-date legal developments. \u00a0This information is not provided in the course of, and receipt of it does not constitute, an attorney-client relationship.\u00a0 It certainly does not substitute for obtaining legal advice from a licensed attorney. \u00a0Legal advice should take into account the specific facts and circumstances applicable to each individual situation. \u00a0Viewing this site and reading this blog does not create an attorney-client relationship between you and our firm.\u00a0 Likewise, sending me an email does not create an attorney-client relationship between you and the firm.\u00a0\u00a0 While I would be happy to hear from you, Flott & Co. PC cannot represent you until we have determined that doing so will not be a conflict of interest. \u00a0The only way for you to initiate legal representation with the firm is to call me at\u00a0(703) 525-5110\u00a0(X122). \u00a0If and when Flott & Co. PC \u00a0enters into an engagement agreement with you, you will be a client of the firm, at which time we will be able to exchange information freely.<\/p>\n

Unless otherwise indicated by Flott & Co. PC in writing, any US federal tax advice contained in this blog is not intended or written to be used, and cannot be used, for either (i) avoiding penalties under the US Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any matter addressed within. For further information regarding this notice, please see\u00a0http:\/\/www.flottco.com\/emailnotice.pdf<\/wbr><\/a>.<\/strong><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

This week, we will start with a simple issue.\u00a0 Say you invested in Treasury Bonds.\u00a0 Did you know that it property within the US for estate tax purposes, even if you are a nonresident noncitizen of the US?\u00a0 Debt obligations of a US person are categorized as property within the US for estate tax purposes.[1]\u00a0…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,11],"tags":[22],"class_list":["post-473","post","type-post","status-publish","format-standard","hentry","category-us-taxation","category-us-tax-returns-for-non-residents","tag-jeanne-franklin"],"_links":{"self":[{"href":"http:\/\/www.flottco.com\/accidentaluscitizen\/wp-json\/wp\/v2\/posts\/473","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.flottco.com\/accidentaluscitizen\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.flottco.com\/accidentaluscitizen\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.flottco.com\/accidentaluscitizen\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.flottco.com\/accidentaluscitizen\/wp-json\/wp\/v2\/comments?post=473"}],"version-history":[{"count":0,"href":"http:\/\/www.flottco.com\/accidentaluscitizen\/wp-json\/wp\/v2\/posts\/473\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.flottco.com\/accidentaluscitizen\/wp-json\/wp\/v2\/media?parent=473"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.flottco.com\/accidentaluscitizen\/wp-json\/wp\/v2\/categories?post=473"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.flottco.com\/accidentaluscitizen\/wp-json\/wp\/v2\/tags?post=473"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}