IRS WILL TARGET FOREIGN INVESTORS IN US REAL ESTATE - NOT REPORTING RENTAL INCOME AND SALES

US Nonresidents who own US rental real estate and sell US real properties are the now a target of IRS

audits and investigations.  If you fit in that category and  have failed to report your real estate income  on form1040NR you may soon be in trouble with the Internal Revenue Service and the tax bureau of the state in which the property is located. Penalties and interest can be large so it is now time to catch up quickly before you get caught.  The IRS generally has a policy that if you come forward first and make up for your previous failure to file returns and pay taxes before they find you to be kinder than if they find you first.

Remember you must report and file returns on your US real estate income whether or not you made a profit on the rental or sale.

READ ABOUT THE IRS PROGRAM TARGETING NONREDISDENT REAL ESTATE OWNERS HERE   If you are a nonresident and need help filing current and past US tax returns to report your income and expenses from US real property we can help.  We are US CPAs and  US Attorneys with over 30 years expertise. Contact us at www.taxmeless.com or ddnelson@gmail.com.

US NONRESIDENT TAX CONSULTATION AND ANSWERS FROM US ATTORNEY AND CPAS

A "MINI CONSULTATION" IS NOW AVAILABLE: If you have specific tax questions on your personal situation and need to discuss it with an US expatriate international tax expert, with the protection of  Attorney-Client privilege, you can request a "Mini Consultation."   "Mini Consultation" costs a minimum of $300 US for up to 30 minutes of Mr. Nelson's professional legal tax advice over the phone, skype or email.  No need to visit his office. 

If  you send us an outline of your situation, facts and questions in advance, we prepare in advance and this time is extremely productive and usually resolves all of your questions  within the time allowed.  We know Form 1040NR and its filing requirements as well as taxation of nonresidents of all states in the US.

 And remember as a CPA firm we can also prepare the returns, forms, and amended returns to solve your tax problem.  We are a one stop solution.

 Over 900 U.S. expat taxpayers located everywhere in the world  have used "Mini Consultations" to resolve their tax problems and issues.

  US Phone (949) 480-1235. US Fax (949) 606-9627 or we can talk on my skype address dondnelson. Email:ddnelson@gmail.com  Whatsapp No. (818) 519-9219 (US)

 Payment can easily be made by credit card, paypal, check, echeck or wire transfer. If your questions or problems are URGENT let us know and we can often schedule it on the same day.

When a Nonresident Must Pay Taxes on Their Business Income and US Real Estate Sales

For tax purposes, an alien is an individual who is not a U.S. citizen . Aliens are classified as nonresident aliens and resident aliens. Publication 519 will help you determine your status

and give you information you will need to file your U.S. tax return. Green card holders are considered the same as citizens in most circumstances and normally must file the Form 1040 as a would a citizen.

Many nonresidents are sellling products through Amazon or other on line companies and due to inventories, etc. would be deemed as subject to US  income tax on their Sales through this companies.   These rules apply even though the nonresident may not have an permanent business establishment in the US.  If the nonresident has a US Agent this can sometimes cause them to be deemed to have a tax situs in the US.

Nonresidents are taxable on their sales of US real properties. Also should the nonresident individual owner die, the value of the US properties are subject to US estate taxes if the fair market value of the property of the date of death exceeds $60,000.  There are tax strategies available to avoid the US estate tax.

US Interest and Dividend income is usually taxable to nonresidents, though US capital gains from the sale of US stocks in the stock market are not taxable.

If you are a US nonresident who wishs to do business in the US, sell products, buy US real estate and rent US real estate we can help you plan the best tax strategies.  We are US attorneys and CPAs that specialize in US nonresident taxation. EMAIL US

If you are a US nonresident that needs to file their US income tax return for 2019 or earlier years, we can prepare that return to provide you with the optimum tax results. DOWNLOAD OUR TAX QUESTIONNAIRE AND RETURN TO US FOR A FEE QUOTE

IRS PENALTIES THAT APPLY TO NONRESIDENTS MOVING TO THE US AS PERMANENT OR LONG TERM RESIDENTS.

There are two IRS penalties that we think are particularly troublesome for nonresidents moving to the US and trying to adapt to the US tax system which will tax their worldwide income and cause them to report their foreign assets and gifts sent to them  from abroad.

1.  First, the penalty for failure to report a foreign gift or bequest. All U.S. taxpayer's have an obligation to report a Foreign gift, devise or bequest on Form 3520. There is no tax on receipt of the gift or inheritance, but the penalty for not filing a Form 3520 is 25%- 35% of the face value of the gift or inheritance. I have a case where the penalty the taxpayer is facing is close to $2 M. 

2. The second example is failure to report foreign financial account by filing a Report of Foreign Financial Account (FinCEN Form 114). The "non-willful" penalty is $10,000 per account per year for up to six (6) years. The penalty for a "willful" failure to file an FBAR is the greater of $100,000 or 50% of the High Balance in the account. That same client who failed to file a Form 3520 may also face a 50% penalty for failing to file an FBAR. Willful has been interpreted to include the failure to report an offshore account on Scheudle B of Form1040.

There are other steps you should take in advance of moving to the USA including the sale of highly appreciated assets located abroad to avoid paying US tax on the gain from those sales. Also, your ownership of foreign corporations ,etc may necessitate a restructuring prior to your US move to avoid unfavorable US tax consequences.  EMAIL US with you questions and for further assistance.

New IRS Programs for Those Who Surrendered Their Citizenship WIthout FIling IRS Tax Returns and Surrender Forms

If you surrender your US Citizenship you are required to be current on US taxes and file certain special forms that allow you to take your assets with you and if they are less than $2million not pay any taxes on any appreciation in those assets. Failure to file final returns and file the Form 8854 means you still remain liable for US taxes until you do comply with the IRS procedures.  This IRS requirement is separate from any procedures and forms you fill out when you surrender  your citizenship with the US State Department.

This program if you qualify may result in you paying no taxes at all and having a clean tax bill of health.  Read more about the program HERE

If you want to use this program to avoid possible future huge penalties, taxes and interest we can help.  An ever increasing number of countries are now exchanging ever increasing information with the US IRS and sometime in the future you may have problems if you are not compliant with surrender of citizenship tax requirements.

We have assisted hundreds of US Citizens and  Green Card Holders  with the surrender of their legal status. We can help you. EMAIL US HERE FOR MORE INFORMATION  Visit our website at www.taxmeless.com    We are US CPAs and Attorney with over 50 years combined experience in US Nonresident, International and Expatriate taxation.

US Nonresident Tax Consultations with US attorney available by skype, phone and email

A "MINI TAX CONSULTATION" IS NOW AVAILABLE with a US Attorney by Phone or Skype: If you have specific tax questions on your personal situation and need to discuss it with an US expatriate international tax expert, with the protection of  Attorney-Client privilege, you can request a "Mini Consultation."   "Mini Consultation" costs a minimum of $300 US for up to 30 minutes of Mr. Nelson's professional legal tax advice over the phone, skype or by  email from any where in the world.         

  No need to visit his office.  If  you send us an outline of your situation, facts and questions in advance, we prepare in advance and this time is extremely productive and usually resolves all of your questions  within the time allowed. Over 900 U.S. expat taxpayers located everywhere in the world  have used "Mini Consultations" to resolve their tax problems and issues.  US Phone (949) 480-1235. US Fax (949) 606-9627 or we can talk on my skype address dondnelson. Email:ddnelson@gmail.com   Payment can easily be made by credit card, or  paypal, or direct  bank transfer. If your questions or problems are URGENT let us know and we can often schedule it on the same day. Learn More About  How your Mini Consultation Works

If you wish to set up your US business and need help with the tax, and legal requirements, formation of a US corporation or LLC, etc we can help with all of this requirements.

Don Nelson, Attorney at Law has ever 30 years experience with US expatriate, international and nonresident taxation and representing taxpayers before the IRS.  He is also a partner in Kauffman Nelson LLP Certified Public Accountants.  Read more about his background and experience.

www.TaxMeLess.com

What Taxes Must be Paid In US When Nonresidents Sell Their US Property

The following is an excellent article from The Globe and Mail setting forth  what happens tax wise  with respect to US real property when a Nonresident alien sells their vacation home (and a lot of this applies if they sell a rental property). READ ARTICLE HERE

Contact us when you need to plan for US taxes on your sale or when you need to file returns to report the sale of your US property.  ddnelson@gmail.com