How non-US persons can avoid tax traps when living or investing in the United States

How non-US persons can avoid tax traps when living or investing in the United States

http://ift.tt/2e7WQ94 The United States is the land of opportunity for non-US persons that are looking to live or invest here. It is also full of dangerous tax traps. The good news is that many of these traps can be avoided. In this video, we talk about the four biggest tax traps for those looking to live or invest in the US and how to avoid them. Trap #1 - the Capital Gains trap We discuss what a capital gain is, and what to do before you become a US citizen is if you own stocks. Trap #2 - the Foreign Life Insurance trap Bear in mind what "foreign" means in this case! It means "non-US". If you are from China and have a Chinese bank account, it's not foreign to you! But it is foreign to the US. Foreign life insurance is not considered to be life insurance under the US tax code. It is treated as an investment, which means you are taxed much more on it! also, you are also going to pay a 1% excise tax it...not yearly, but quarterly. The good news is that if you have any foreign life insurance, there are ways to handle it. Trap #3 - the Ownership of Real Estate Real estate should not be in your name for both tax and liability purposes. You need a plan in place to avoid heavy estate taxes (up to 35%!). Also bear in mind that if you own rental property, you will be taxed on that income. Trap #4 - Foreign Reporting Requirements There are NUMEROUS IRS forms that need to be filled out, some quarterly and some yearly. If you fail to file these forms, there are severe monetary penalties. You need to report things like foreign bank accounts and assets, mutual funds, and partnerships, just to name a few. If you are considering becoming a US person, or living/investing in the US, make sure you have a plan in place to avoid these nasty tax traps. Contact us for assistance. Our team of attorneys, CPAs and tax planners have international experience. Any information you share with us is subject to the attorney client privilege. 888-727-8796 info@irsmedic.com IRSMedic - The law offices of Parent & Parent, LLP http://youtu.be/toqTlc_oPDU IRS Medic