S Corp vs C Corp

S Corp is very advantageous when compared to C Corp. The difference between an S Corp and an LLC is not that big. – The advantage of the S Corp is that you will be drawing a salary, hence you only will be paying FICA payroll taxes on your salary. A single-member LLC is a ...

Two women sue the Canadian government for having concluded a FATCA agreement with the United States 1

Did Ottawa violate the constitutional rights of Canadians to help the United States collect taxes? For two women in Ontario, it did. Two women sue the Canadian government on the agreement between Canada and the United States following the American FATCA legislation. Following that Ottawa has established a process for sharing banking information of individuals ...

The Cayman Islands Agree To Help The U.S. Hunt Down Tax Cheats

The law that’s driven crackdowns on American tax evasion via Swiss bank accounts is coming to the Cayman Islands as well. Banks in the Caribbean archipelago will be subject to the Foreign Account Tax Compliance Act (FATCA) when the law goes into effect in mid-2014 under an agreement struck between the U.S. and Cayman governments in August. ...

Income earned on international waters 1

As we know, there are two main mechanisms available to US persons to avoid being taxed in the US (in the case of the foreign tax credit, while also paying taxes overseas): – The foreign tax credit (FTC) and – The foreign earned income exclusion (FEIE) The mechanics of the foreign tax credit require the ...

FATCA

L’exclusion concernant le revenu gagné à l’étranger et de logement (« Foreign Earned Income Exclusion and Housing Exclusion » – FEIE)

Les américains travaillant à l’étranger peuvent être admissibles à exclure certains revenus étrangers perçus (salaires, la rémunération pour les services) du revenu imposable US en vertu des règles régissant l’exclusion des Affaires étrangères gagné sur le revenu (FEIE), et certains frais de logement á l’étranger. Les exclusions s’appliquent indépendamment du fait que l’impôt étranger est ...

Foreign Earned Income and Housing Exclusions

Americans working abroad may be eligible to exclude certain foreign earned income (wages, compensation for services) from US taxable income under the rules governing the Foreign Earned Income Exclusion (FEIE), and certain foreign housing costs paid by their employers. The exclusions apply regardless of whether any foreign tax is paid on the foreign earned income ...

US Income Tax

This is a graduated tax rate imposed on income earned by individuals. For US persons (that is, a US citizen, a so-called “Green Card” holder or a “US resident” due to substantial physical presence in the US) “income” means worldwide income from whatever source derived and from wherever it is derived in the world. The ...

Intro

Any US citizen or any person holding a Green Card has the obligation to file US tax returns and to pay all US taxes. In the case of a Green Card holder, this remains so even if the Green Card has “expired” and the individual has not returned to the USA for many years. Any ...

Filing obligation of a 6 year old 1

Somebody recently asked me if a 6 year old US citizen, living abroad, who receives minimal unearned income on his bank account was required to file US tax returns, here is my response – feel free to as your own question in the comment section below:   General rule: As a general rule, US persons ...