FILING US TAX RETURNS AND FBAR’S ARE NOT THE WHOLE STORY: THE FOURTH IN A SERIES ABOUT OTHER US TAX SURPRISES – REPORTING REQUIREMENTS – IRS FORM 5471 – Category 4 Filers

US persons who have ownership interests in foreign corporations, or who are directors or officers of foreign corporations, are subject to special reporting rules.  The first article of this series provided the general reporting requirements under Form 5471; the second article of this series about the reporting requirements of “Category 2 Filers”, which are the…

Details

FATCA’s EFFECTIVE DATE UNCHANGED – JULY 1, 2014

US International Tax Counsel, Danielle Rolfes, confirmed on 28 February 2014 during remarks to the Federal Bar Association Section of Taxation meeting in Washington that the 1 July 2014 effective date for implementation of the Foreign Account Tax Compliance Act (FATCA) will not be extended.  She also said that FATCA is not going to be…

Details

Foreign Earned Income Exclusion

The US taxes its citizens and residents based on their worldwide income. A US citizen living abroad can elect to exclude a certain amount of foreign earned income on his or her US income tax return, if certain requirements are met. For 2013, the maximum foreign earned income exclusion (“FEIE”) amount is $97,600 per taxpayer (amount indexed for inflation each year). The FEIE is available only to exclude income from wages or self-employment income earned for services performed outside the US. The FEIE is claimed on IRS Form 2555.

Details

FILING US TAX RETURNS AND FBAR’S ISN’T THE WHOLE STORY: THE THIRD IN A SERIES ABOUT OTHER US TAX SURPRISES – REPORTING REQUIREMENTS – IRS FORM 5471 – Category 3 Filers

US persons with ownership interests in foreign corporations or who are directors or officers of foreign corporations are subject to special reporting rules. The first article of this series provided the general reporting requirements under Form 5471 which was followed by the second article of this series about the reporting requirements of “Category 2 Filers”, which are the reporting requirements of a US citizen or resident who is an officer or director of a foreign corporation. This article will focus on the reporting requirements of “Category 3 Filers”, which are the reporting requirements that are generally triggered when US persons acquire and dispose of stock in a foreign corporation.

Details

G-IV Visas: Taxation on US Sourced Capital Gains

An individual residing in the US in G-IV visa status (“G-IV Taxpayer”) is generally taxed as a nonresident alien even though the individual may live in the US for an extended period of time. Generally, nonresident aliens are not subject to US capital gains tax with the exception of real property located in the US. However, there is an exception to this rule for nonresident aliens who have been in the US for more than 182 days in a given year.

Details