How to Stop Being a US Resident and Taxpayer

How to Stop Being a US Resident and Taxpayer

Santa taxation

Santa taxation
Merry Christmas everyone. So, now the topic that all the good boys and girls were waiting for:   * Is that that thing that you found under the Christmas tree taxable income? This reminds us of the court case of Cesarini v. United States: taxpayer found cash in a piano. Besides the timing issue addressed ...

Form 8938 not required for those non-residents by virtue of a treaty positions

As a way of background, until now, non-residents who didn’t meet the substantial presence test, were exempted individuals (form 8843) or used a closer connection exemption (form 8840) didn’t have to file form 8938 (the FATCA version of the foreign asset reporting, often seen as duplicative version of the FBAR’s Fincen 114). Those who were non-residents by ...

Filing obligations for foreigners living in the United States

Are you a “US person”? The Internal Revenue Code would apply to you the same way it applies to US citizens if you are a “US person” (IRC 7701(a)(30) – and we’re looking at IRC 7701(a)(30)(A) in particular for what a “resident of the United States” is). You would be a US person if you ...

Humor – Courtroom Quotations

These are humorous courtroom quotes that have been circulating on the Internet. But hey, a little laugh doesn’t hurt, so here they are: The following quotations are taken from official court records across the nation, showing how funny and embarrassing it is that recorders operate at all times in courts of law, so that even ...

US Estate Tax May be Payable by Canadians

All amounts in this article are in US dollars Canada-U.S. Tax Treaty Article XXIX B Taxes Imposed by Reason of Death A U.S. estate tax return must be filed if a deceased Canadian resident who is not an American citizen owned U.S.-situated assets exceeding $60,000 fair market value at death.  However, if the deceased made substantial lifetime ...

GATCA is coming to town

GATCA is coming to town
As many of you know, the United States has implemented FATCA (Foreign Account Tax Compliance Act), requiring financial institutions around the world to report the names of their depositors who are US persons (hence potentially liable to pay US tax) – or else face a 30% withholding on their US sourced income. There have been ...

Renting Your Vacation Home

If you own a home in a vacation locale – whether it is your primary residence or a vacation home – and are considering renting it out to others, there are complicated tax rules, referred to as the “vacation home rental rules,” that you need to be aware of. Generally, the tax code breaks a ...

Tax Treaties

Tax treaties may provide unique advantages; feel free to look at them to see if it contains something that could be useful to your specific case. Country Signed Income Tax Treaty Technical Explanation Australia 1982 63K 87K Australia Protocol   2001 35K K Austria 1996 186K – Barbados 1984 96K 98K Belgium 1970 82K 100K Canada ...

How can snowbirds avoid becoming US persons?

Hello snowbirds, Winter’s coming, time to move south. Will I become a US person subject to US taxation on my worldwide income? According to the domestic tax laws of the United States, the substantial presence test (“SPT”) is used to determine the residency status of a person in the United States. This is a calculation ...