Thread: U. S. Taxes on Worldwide Income
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06-22-13 17:53 #41
Posts: 2808Originally Posted by Dccpa [View Original Post]
He walked into the embassy and tried to renounce his citizenship and they told him "Come back Monday you can do it then." I wonder if they had a sign;
"Disenfranchisements processed Mon.-Thur ONLY."
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06-22-13 14:28 #40
Posts: 577Foreign Earned Income Exclusion
Originally Posted by Dccpa [View Original Post]
Tres3.
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06-22-13 14:19 #39
Posts: 192Originally Posted by Tiny12 [View Original Post]
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06-22-13 14:11 #38
Posts: 192Originally Posted by Dickhead [View Original Post]
http://taxes.about.com/od/taxhelp/a/ForeignIncome.htm
There are two ways to qualify and Dickhead is referring to the physical presence test. The second method is the bona fide residence test. I have never researched what the IRS means by brief trips to the US, but I suspect there are more days allowed than under the physical presence test.
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06-21-13 22:57 #37
Posts: 776Were you planning on renouncing US Citizenship? You may need to think again, if you ever want to set foot in the USA. That's if this amendment to the immigration bill is passed, and if you exceed certain threshholds for income or net worth:
http://www.reed.senate.gov/news/rele...ntering-the-us
And if you already expatriated and renounced and this becomes law? Well, you may be screwed.
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11-05-12 22:00 #36
Posts: 3510However, if you are a US citizen and you are physically out of the country for 330 complete days in any 365 day period, you can exclude income earned Up to the amount of $95, 100 in 2012 from income taxation (but not from OASDI as Fred points out). This number is indexed for inflation. This is true whether you are self-employed or an employee. This saved me about $80, 000 over the time I lived in Argentina and another $5 or $10k when I was in the UK and Spain. And if you have no taxable income, then create some in an amount equal to what you can wipe out with the personal exemption and the standard deduction ($10, 000 combined for 2013) by converting your IRA to a Roth IRA. That means that money will never get taxed. I made out even better than this because my job was not covered under Social Security so all I had to pay was the 1. 45% Medicare tax. I would have maybe 3 or 4 more years to work if it were not for that tax provision.
Anyone deciding to become a legal resident of Argentina (I never did that even though I was there for most of seven years) needs to think very carefully about the tax ramifications of doing so. I was working over the internet so was never on the Argie radar but they are definitely looking to increase their tax enforcement substantially.
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11-05-12 20:55 #35
Posts: 329Originally Posted by Doggboy [View Original Post]
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11-05-12 20:11 #34
Posts: 55So does Argentina if you are a resident. Well it tries to tax it.
Originally Posted by Dccpa [View Original Post]
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11-05-12 17:31 #33
Posts: 192Originally Posted by Chicago Guy [View Original Post]
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11-05-12 16:49 #32
Posts: 577Internal Revenue Code (IRC)
Originally Posted by Chicago Guy [View Original Post]
Tres3
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11-05-12 15:27 #31
Posts: 36Originally Posted by Jackson [View Original Post]
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04-29-10 14:27 #30
Posts: 1885The main thrusts
Westy:
Good points that reinforce the primary interest of the US Govt when it comes to citizens' foreign assets and income: they want to be able to collect every dime of taxable income you earn as well as other taxes (estate tax, etc) that you may some day owe. In order to collect, they need to know at whom they should be looking.
Dogboy's initial post on the subject was driven by some written reaction to the enactment of "H. R. 2847, the Hiring Incentives to Restore Employment (HIRE) Act" on March 18, 2010 by President-for-life Obama. While I am confused (not really) about why would something aimed at domestic policy with a title including "Hiring Incentives," would include a number of international tax provisions, never the less they are there.
The existing $10k transaction threshold is derivative of efforts, clothed in anti-drug garb, geared towards identifying and stopping money laundering. Whilst those purposes were part of the design, the byproduct that it helps the IRS identify citizens that might have unreported foreign income was not coincident. Additionally, the IRS wants to find citizens with fungible assets in excess of $50k, anywhere offshore, that may not be snared by the $10k transaction net, and then look to see what else they might have offshore or might have earned offshore.
At the same time, while a direct investment in foreign real estate isn't a taxable event, income earned on such an investment is taxable as are transfers of property whether financial or non-financial in nature.
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04-29-10 13:14 #29
Posts: 78Offshore real estate
The May 2010 International Living magazine has an article that refers specifically to "foreign real estate" and the IRS, written by an economist with Casey Research. As the author puts it:
A direct investment in foreign real estate is free of any special U. S. Tax or reporting rules. It's just like buying a farm in Kansas. It would also present added difficulties for a lawsuit creditor looking for ways to collect. And it is unlikely that any regime of foreign exchange controls would touch existing foreign real estate investments.
Foreign real estate can also pay you a psychological divident. Knowing you have a place to go provides a sense of security.
Originally Posted by Doggboy
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04-27-10 13:33 #28
Posts: 1885I've done a little research on the subject
Originally Posted by Doggboy
Income, in whatever form it comes in, is almost always going to be taxable in the eyes of the IRS. However, there are various, legal means through which one can delay or lessen the impact of the tax bite. Generally, the goal is to legally delay the date upon which the tax becomes due as opposed to eliminating the tax obligation entirely (although that would be nice) The longer you hold onto the cash, the longer you can invest it and make more money off of it. With certain trust structures, you can delay the tax indefinitely.
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04-26-10 19:09 #27
Posts: 2470Much ado about almost nothing
Originally Posted by Wild Walleye
"Thanks for the link. This is referring to "financial assets" and as stated the internal revenue service is still vague on its definition. It is my understanding that this is related to the foreign bank account reporting requirements, as opposed to tangible assets such as real estate. With the foreign bank account reporting requirements there is currently a $10k threshold but this definition does not include accounts such as mutual funds (has always been vague and even more so with the recent scrutiny that has been placed on these filings) held in a foreign country which is what this "financial asset" definition is set to include. This would not be a tax on the value of this asset rather a reporting requirement so that big brother can know what is going on everywhere at all times. I will keep you up to date as I hear anything further, but you are correct the IRS is ever changing and you never know what to expect."