How much do you pay every year in state income tax? And just think of how you could put that money to better use in a low-cost country where your dollars go much further. With the right move, you can completely eliminate your future state income tax and reporting responsibilities before you head abroad. You can do this by moving to a no-income-tax state before you depart for a new country.
Living and working overseas provides opportunities for new vistas, new cultures, great food, more sunshine, and a much lower cost of living. But did you know that it can also provide you with a huge tax benefit? Maybe you are overseas as an employee for a corporation, a local B&B, or even a tour company. Perhaps you operate abroad as an independent consultant, freelancer, or business owner. If you are a U.S. citizen living and working outside the U.S. for most of a year, you may qualify for what’s known as the Foreign Earned Income Exclusion (FEIE). With this, you could completely eliminate your U.S. tax liability.
So you’ve moved overseas to start a new life. Maybe you’ve left an old job and started a new business—and it’s thriving. Perhaps you are finally living the overseas retirement you always dreamed of. But wherever you go, and whatever you do, if you’re a U.S. citizen, you cannot escape your annual U.S. income tax responsibilities. Luckily, filing your taxes from overseas is as easy now as it’s ever been. And you may even qualify for some great benefits by doing it.
You’re considering an international lifestyle. You have a shortlist of overseas havens and you’ve set the date next year when you’re going to make the move. Along with your other research, thorough tax planning can help you save money and avoid hassle. Here are the three things I always talk through with prospective expats…
You’ve found your perfect retirement paradise overseas and your attorney has recommended that you establish a foreign corporation and have it own the property for you. You’ve looked at the legal side of this and it makes a lot of sense. However, as the Foreign Account Tax Compliance Act (FATCA) regulations take effect, you have additional tax and reporting issues to consider.
U.S. tax laws are changing. In fact, they’re changing even as they’re being implemented—and if you’re confused, you aren’t alone. There’s a lot of false information making the rounds about the HIRE Act and FATCA—the Foreign Account Tax Compliance Act.
Every American expat needs to clearly understand the financial and tax issues that result from living and working abroad. Maximize your U.S. tax opportunities and avoid potential IRS minefields so you can make your expat experience a financially carefree one.
Every American expat needs to clearly understand the financial and tax issues that result from living and working abroad. Maximize your U.S. tax opportunities and avoid potential IRS minefields so you can make your expat experience a financially carefree one.
Yes, you can use your IRA to purchase foreign real estate – CPA Nick Hodges shares the details and explains how to do it right.
Yes, you can use your IRA to purchase foreign real estate – CPA Nick Hodges shares the details and explains how to do it right.