GILTI High-Tax Exclusion Election for US Individual Taxpayers
In December of 2017, expansive US tax reform was introduced under the Tax Cuts and Jobs Act (TCJA). Much of this tax reform was focused on the international tax code, in particular the taxation of offshore earnings. As a result of this tax reform, a minimum tax was imposed on foreign company earnings, more specifically, the foreign earnings which are derived from, or deemed to be derived from, intangible assets. This new minimum tax introduced in 2018 was called the Global Intangible Low-Taxed Income, or “GILTI”.
Schedule M on Form 5471: Reporting Transactions between a Controlled Foreign Corporation and Shareholders or Other Related Persons
Form 5471 is used by US taxpayers who have ownership or control over certain foreign corporations. The purpose of Form 5471 is to provide the IRS with detailed information about these foreign corporations and their US shareholders. Schedule O is used to report the organization or reorganization of a foreign corporation and the acquisition or disposition of its stock.
Schedule O on Form 5471: Foreign Corporate Reorganizations and Acquisitions
Form 5471 is used by US taxpayers who have ownership or control over certain foreign corporations. The purpose of Form 5471 is to provide the IRS with detailed information about these foreign corporations and their US shareholders. Schedule O is used to report the organization or reorganization of a foreign corporation and the acquisition or disposition of its stock.
The Foreign Tax Credit
The Foreign Tax Credit As an American, you’re subject to US income taxation, even if you live abroad. Therefore, you’re required to file a US tax return and report your worldwide income to the IRS. However, you would generally also be required to file a tax return in the country where you live. The Foreign […]
IRS Form 8858 for Foreign Disregarded Entities
IRS Form 8858 for Foreign Disregarded Entities The most common example of a disregarded entity is a single-member limited liability company (LLC). By default, a single-member LLC is considered a disregarded entity for federal tax purposes. The means that the IRS does not view the LLC as a separate entity, and the owner reports the […]
The US-UK Tax Treaty for US Expats
As an American living in the UK you’re required to file a US tax return and report your UK income to the IRS. The US taxes it’s citizens on their worldwide income, even if they live in the UK. However, if income can be excluded under the provisions of the US-UK tax treaty, it’s not taxable in the US.
The Bona Fide Residence Test for US Expats
As an American, you’re subject to US income taxation, even if you live abroad. Therefore, you’re required to file a US tax return and report your worldwide income to the IRS. However, you may be allowed to exclude part of your income, if you’re a bona fide residence of a foreign country.
IRS Form 8832: Entity Classification Election
IRS Form 8832: Entity Classification Election As a U.S. taxpayer, you’re generally required to file a U.S. tax return and report your worldwide income to the IRS. If you’re a shareholder in a foreign company or a partner of a foreign partnership, you’re generally required to include the income you receive from the foreign company […]
The Foreign Earned Income Exclusion
THE FOREIGN EARNED INCOME EXCLUSION U.S. citizens living in a foreign country are subject to the same U.S. income tax laws that apply to U.S. citizens living in the United States. This means that you are subject to U.S. federal income tax on your worldwide income and are required to file a U.S. tax return […]
U.S. Taxes for Americans Living in Switzerland
Sanders US Tax Services in located in Zurich, Switzerland. Our services include US tax return preparation for individuals and companies. If you’re an American living in Switzerland, contact us to schedule a meeting at our office in the heart of Zurich. We speak English and German.
