GILTI: Does it Apply to Me?

One of the biggest changes the 2017 Tax Cuts and Jobs Act (TCJA) enacted in the international tax arena was section 951A, also known as the Global Intangible Low-Taxed Income (GILTI). GILTI requires certain U.S. owners of foreign corporations to include in their personal income taxes the GILTI from the foreign corporation.  This reporting is […]

The IRS is GILTI of Wasting our Time……and Maybe our Money

The GILTI laws apply to far more taxpayers than expected, require long detailed calculations, and after all that work could likely result in no tax.  However, the cost of ignoring the application, even if no tax is due, could come with very high penalties. Overview On the surface, the new GILTI (Global Intangible Low-Taxed Income) […]

IRS Makes it More Difficult to Setup U.S. Business

In general, there are not any restrictions on foreigners owning U.S. businesses.  The corporation, LLC, or other business entity files its formation documents with the appropriate state government office in a very straightforward process.  Next, the entity must apply for a tax identification number known as an “EIN.” In the past, there was no problem […]

Cross-Border Coordination: Mexican Disregarded Entities

In general, foreign owned businesses are taxed to their U.S. owners as if they were setup in the U.S.  Therefore, it is very important to determine what the business would be considered for U.S. tax purposes.  In some circumstances, the taxpayer can make an election of how the entity will be taxed.  For various reasons, […]

China / Hong Kong: Business and Pleasure

We had a very fun and successful trip to Hong Kong and China meeting friends and colleagues, seeing the sights, making presentations, and spending time together.  It was a rewarding experience to show my kids different cultures and places, as well as what I have been doing when I am on the other side of […]

Tax Deadline for U.S. Persons Living and Working Abroad

The normal tax deadline for individual taxpayers is April 15th.  However, for taxpayers living and working abroad there is an automatic extension to June 15th.  This year, since June 15th is a Saturday, the actual deadline will be June 17th. A few key points to remember: Taxpayers eligible for this deadline are still able to […]

Tijuana Binational Conference

I am honored and excited to be presenting at this year’s Binational Conference of the Colegio de Contadores Publicos de B.C.  The event will take place on June 28th in Tijuana.  Please join us and let me know if you have any questions. Tijuana-Binational-Conference-June-28

Foreign Owned Real Estate – Small Election, Big Tax Savings

A common investment into the U.S. market is real estate, which is often rented to produce income.  This investment has questions that need to be answered regarding things such as holding structure and exit strategy.  However, there is one extremely important tax item that is very straightforward. Generally, under U.S. tax law, rental income is […]

When is a U.S. trust a foreign trust?

When consulting with international clients one of the most common miscommunications involves discussing a “foreign trust.”  For most people, a foreign trust would intuitively be a trust of a foreign country.  However, under U.S. law it is not that simple. For tax purposes, there is not a definition of a foreign trust.  Instead, there is […]

Tax Simplification?

The Tax Cuts and Jobs Act was sold as a simplification of tax laws and forms.  The IRS recently reminded taxpayers that forms 1040A and 1040-EZ have been consolidated into Form 1040.  On its face, that comment would seem to make sense, but let’s give it some more thought.  The purpose of the 1040A and […]

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