Tag Archive for Expats

Cryptocurrency And Taxes: A Lesson For Taxpayers And Expats

A Lesson On Cryptocurrency And Taxes

Welcome. I am Olivier Wagner from 1040 Abroad and will provide an overview of taxation of cryptocurrency, Non-Fungible Tokens (NFTs), and Decentralized Finance

First disclaimer: While cryptocurrencies and NFTs have been gaining traction, these are an extremely volatile asset class.

Likewise, it’s an ever-changing environment, so please contact me before taking anything here as true as it may have changed.

Let’s start with a review of blockchain and the building block that lead us to where we are today.

We have building blocks:
– Blockchain
– Cryptocurrency
– Smart Contracts
– Tokens

Blockchain

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Written by | Posted in Cryptocurrencies: How They Work • Cryptocurrency And Taxes

5 Things To Know About IRAs For U.S. Expats

As an American living and working abroad you better be fully armed with a knowledge regarding IRA for US expats, its’ opportunities and tax savings you can achieve. For example, do you know that depending on your foreign income you may or may not contribute to your regular or Roth IRA as an American abroad?

A lot of US expats qualify for the Foreign Earned Income Exclusion and they choose it to exclude the first $102,100 (as of the 2017 tax year) of foreign wages or self-employed income from the US federal income taxes. But not so many people know that if you are using the Foreign Earned Income Exclusion, then you signed yourself to its restrictions on your contributions to an IRA. Read further to find out more about it.

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Written by | Posted in Expatriate • Expatriate Taxes • Foreign Earned Income • IRA • Roth IRA

Trump Tax Reform Bill Analysis – What Does It Mean For US Expats?

On November 2nd, the House of Representatives unveiled the first draft of the Trump Tax Reform Bill. Here we look at how it will affect expats.

Citizen Based Taxation and FATCA 

There is no mention in the draft Tax Reform Bill of any change to citizen based taxation for individuals, or of repealing FATCA.

It is proposed that corporations are only taxed on their US profits (rather than globally), as taxing corporations globally has (conversely to expectations) reduced government revenue, as globally operating firms have simply relocated to other countries with more favorable tax regimes.

Despite ACA (American Citizens Abroad) lobbying to make a similar change away from global taxation for expat individuals, there is no mention of this in the draft bill. Read More

Written by | Posted in Expatriate • Tax Reform

Top 3 Reasons US Expats Should Catch Up With Their IRS Tax Filing Using the Streamlined Procedure

Living abroad is an incredible adventure that inevitably broadens our horizons and minds, thanks to the perspective we gain from living in a foreign country and experiencing a new culture.Living abroad is an incredible adventure that inevitably broadens our horizons and minds, thanks to the perspective we gain from living in a foreign country and experiencing a new culture.

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Written by | Posted in Expatriate • IRS

What You Need To Know About Voluntary Disclosure

There are around 9 million Americans living oversees, and the IRS has its sights set on those expats who aren’t up to date with their U.S. tax filing.

All American citizens and green card holders are required to file a U.S. tax return, however because the U.S. is the only developed nation to tax its non-resident citizens, many haven’t realized that they have to file. Read More

Written by | Posted in International

IRS Cautions Against Over-reliance On Its Website

National Taxpayer Advocate Nina Olson discussed the potential pitfalls of treating information on the IRS’s website, such as its FAQs pages, as authoritative. The Taxpayer Advocate is an independent office within the IRS tasked with helping people resolve tax issues with the IRS and recommending changes that will prevent future problems.

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Written by | Posted in IRS

Court Blocks Attempt To Transfer From OVDP To Streamlined

Ephraim Moss

In a very recent decision (Maze v. IRS), the D.C. Circuit Court of Appeals upheld a lower court decision blocking several taxpayers’ efforts to leave the OVDP tax amnesty program and enter the friendlier IRS Streamlined program without utilizing the required transition rules.

The Maze case demonstrates the importance of choosing the IRS tax amnesty program that is right for you from the outset. Read More

Written by | Posted in International

How Can American Expats Reduce Their IRS Taxes?

Hugo Lesser

Americans living abroad are still required to file U.S. taxes. The U.S. is the only country that requires its expats to file. It is because the U.S. taxes based on citizenship rather than on residence. Read More

Written by | Posted in International

U.S. Expat Taxes For Americans Living In Ireland

Hugo Lesser

It has been estimated that there are several thousand Americans living in Ireland.

Living in Ireland is an incredible experience for a number of reasons, including the friendly locals, the incredible landscapes, the charming culture, not to mention easy access to the rest of Europe. As an American expatriate living in Ireland though, what exactly do you need to know regarding filing U.S. expat (and Irish) taxes?

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Written by | Posted in International

Establishing Same Country Exemption Through Legislation

John Richardson

The Maloney Approach

This is a continuation from a previous article, FATCA’s Same Country Exemption Won’t Work.

On April 25, 2017 Congresswoman Maloney introduced H.R. 2136: “To amend the Internal Revenue Code of 1986 to provide an exception from certain reporting requirements with respect to the foreign accounts of individuals who live abroad.”

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Written by | Posted in FATCA

Potential Consequences For US Expats Of The Trump Tax Plan

Ephraim Moss

The Trump administration has revealed its official tax reform plan. While it’s clear that the plan would make drastic changes to the current U.S. tax system, the brevity of the plan leaves a host of ancillary issues and details either unclarified or unaddressed in the one-page document. This is particularly true for expats – the tax plan gives little insight into whether changes will be sought by the administration that specifically address U.S. expat concerns.

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Written by | Posted in Donald Trump Tax Plan

Form 8621 And 5471 Are Required Even If The Tax Return Isn’t!

John Richardson

The Internal Revenue Code of the United States requires two things:

1. The calculation of taxes; and

2. The reporting of information.

The Internal Revenue Code of the United States is based on three basic principles:

1. A dislike of all things “foreign”. (If you see the word “foreign” a penalty is sure to follow.)

2. A hatred of all forms of non-U.S. “tax deferral”

3. An attempt to stop the “leakage” of “U.S. taxable assets” from the U.S. tax base. (Examples include the U.S. tax treatment of the “alien spouse” and the U.S. S. 877A “Exit Tax” that may be payable when one makes the decision to renounce U.S. citizenship).

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Written by | Posted in Tax Return
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