The 2017 U.S. Tax Reform AKA – The Tax Cuts and Jobs Act ushered in significant changes for Americans abroad who carry on business through small business corporations. Section 965 was an attempt to impose retroactive taxation on 31 years of corporate earnings that were NOT subject to U.S. taxation at the time that they were earned. In Canada Canadian Controlled Private Corporations are used as private pension plans. The effect of the Sec. 965 transition tax was/is to confiscate the pensions which were earned in Canada by Canadian residents. It’s simply wrong.

In early of 2018 Dr. Karen Alpert and I worked on a series of videos to explain the Sec. 965 Transition Tax. Those vides spawned a series of 27 posts about the Sec. 965 transition tax.

Destroying Your Future – Presumed GILTI – The Sec. 951A GILTI Tax

2018 was the first year of the application of the Sec. 951A GILTI Tax. As we reach the end of the year there continues to be much uncertainty about how the tax applies. Dr. Alpert has written a series of posts which describe how GILTI applies to the individual shareholders who own small business corporations. The specific focus of the posts is how GILTI affects Americans abroad. Ms. Alpert’s posts are at her Fix The Tax Treaty blog. The specific posts include:

Explaining GILTI – Introduction – November 23, 2018

Explaining GILTI – Rationale – November 27, 2018

Explaining GILTI – Measurement – November 30, 2018

Explaining GILTI – Individual Measurement – December 5, 2018

Explaining GILTI – Wrap-Up – December 9, 2018

The posts are a wonderful and concise introduction to GILTI and how it applies to individual Americans abroad.

I then invited Ms. Alpert to participate with me in the development of some videos where we discussed GILTI.

I suggest you read the posts and watch the videos.

1. #GILTI As Charged: Part 1 Explaining GILTI and Imputed Income – with @Expatriationlaw John Richardson and @FixTheTaxTreaty Karen Alpert 1/3 https://t.co/PzcPi0orvw

— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) December 6, 2018

2. #GILTI As Charged: Part 2 Explaining GILTI – The Rationale and the calculations for corporate shareholders of a CFC with @ExpatriationLaw John Richardson and @FixTheTaxTreaty Karen Alpert 2/3 https://t.co/OydywWd3Mo

— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) December 6, 2018

 

 

3. #GILTI As Charged: Part 3 Measuring The GILTI Fine – The 962 Election – Corporations vs. Individuals and why it's worse for individual shareholders than corporate shareholders with @ExpatriationLaw John Richardson and @FixTheTaxTreaty Karen Alpert 3/3 https://t.co/OkiQFMRewe

— John Richardson – lawyer for "U.S. persons" abroad (@ExpatriationLaw) December 6, 2018

Have a tax question? Contact John Richardson.