Divorce is a very stressful time but the complexities of the US tax rules when a non-US spouse is involved add an additional layer of complexity.
Under the general US tax rules, when assets are transferred between spouses incident to a divorce there is no realisation of a gain or loss by the transferor-spouse. Instead, the transfer is treated as a gift. If the spouses are both US citizens, the case is straightforward and simple and no US Income tax or Gift ...
Individual Taxpayer Identification numbers (ITIN) are designated to those who have tax filing and payment obligations under U.S. law but are not eligible for a security number. This includes those with US property, investments or income. The IRS have urged taxpayers to submit their ITIN renewal applications soon to avoid refund delays next year, predicting more than 2 million individual taxpayer identification numbers to expire at the end of 2018.
Who needs to take action now?
Only those taxpayers with an ITIN that ...
Future passports applications will be at risk of being denied due to unpaid taxes, affecting thousands of Americans. Details have emerged from IRS officials on the enforcement of a law congress passed in 2015. In a move to make Americans settle their debts, the IRS and State department are to deny or revoke passports for taxpayers who have more than $51,000 of overdue tax debt.
Taxpayer names are already being passed on to the State department by the IRS, with some taxpayers ...
The IRS recently released a draft of its new Form 1040 that every American taxpayer will use to file their 2018 tax returns early next year. And as expected, the new form is significantly different than the one it replaces. As promised by Donald Trump during the 2016 presidential campaign the new form has been reduced to the size of a postcard!
The new postcard sized form 1040 includes just 23 lines, a significant reduction on the 79 lines included on the ...
Section 965 Transition Tax
Many Americans with overseas business interests (i.e. business interests outside the USA) will face additional tax bills this year under the new transition tax rules enacted on 22 December 2017. Although these rules were intended to persuade the likes of Apple and Google to repatriate their historic profits to the US from low tax jurisdictions, they have also swept up other US citizens and green card holders who have more than a 10% interest in a controlled foreign ...
Yesterday President Trump revealed plans to significantly cut the tax rates for both individuals and businesses. There are few details of how and when these changes will be made but below are the headlines of what to expect. The focus of these changes is to cut the US individual and business tax rates and also to simplify the US tax code.
The number of individual income tax brackets will be reduced from seven (ranging between 10% and 39.6%) to just three ...
This morning, Donald J. Trump won the US Presidential Election.
I’m sure that one of the many questions that US citizens may ask is what will be the impact of the election on my tax bill.
Donald Trump’s main proposed tax plans for individuals are as follows:
Change the current income tax brackets ranging from 10% to 39.6% to just three new brackets of 12%, 25% and 33%.
Increase the standard deduction to $15,000 for single taxpayers and $30,000 for married taxpayers.
Prior to the US Presidential election we heard comments first hand and in the press from US citizens and green card holders that they may consider expatriation after the election results.
Following this morning’s news some of those US connected persons may now be considering renouncing their US citizenship or relinquishing their US green cards.
This is a very personal decision to take and one which should never be taken lightly, however for those whose minds are made up we can certainly assist ...
Carmen Lee from our US tax team has had a article published in The American magazine, covering the issues faced by US Persons following the fall in value of the pound.
You can read it in full here.