U.S. TAX For Expatriates, Nonresidents & US International Tax Matters: 11/01/2019

Investments in foreign stocks and shares, investment companies, foreign corporations that keep investements, etc. from a U.S. U.S. individual, pension fund, or trust a paperwork nightmare . If you’re thinking of investing in Foreign shares, please remember your friends at the IRS. Any investment benefits you make will be offset by IRS penalties if you do not do the correct paperwork.

To adhere to the rules and keep the US taxes down you should be submitting forms 8621 each year with your tax return. Do not buy foreign-shared funds (money not sold in the US). These are PFICs (“Passive Foreign Investment Companies”) plus they create a metric lot of complexity and accounting expense for your U.S.

This, by the way, is one of the U.S. ‘s little non-tariff trade obstacles, made to discourage U.S. Remember Form 8938. This is actually the new reporting form for international financial assets, mainly duplicating the FBAR reporting requirements. Foreign tax credit. Undoubtedly a tax of some kind will be enforced for the foreign country where the investment is located.

This will end up on a person return on Form 1116. This form will allow you to take an international tax credit against your US income tax paid on the investment income. What if you expire while owning foreign investments? Be sure an idea is acquired by you for the simple transfer of your accounts to your heirs if you die. The expense of probate procedures in many foreign countries could eliminate any currency markets profits you make. If you create a foreign trust to try to reduce those international estate costs, every year to report that trust you will then have to document forms 3520 and 3520A.

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Posted by R Davis at 12:10 AM 0 feedback Email ThisBlogThis! Do Publications Have Any Responsibility to Screen Their Editorials? In my own last post, I pointed out that the Wall Street Journal website is still exhibiting the same editorial with the same non-inflation-corrected figures for which they had posted a modification.

I concluded that it will now be interesting to find out if the Wall Street Journal corrects it. As of this posting, the Wall Street Journal has still not corrected it and I used to be therefore pleased to see Paul Krugman also take up this issue. On January 19th, a Krugman column titled “The Undeserving Rich” was submitted on the brand-new York Times website. If this sounds wrong for you, it should: that’s a nominal amount, not corrected for inflation.