Foreign Issues

Form 8804 Will Apply Tax Rates in Effect in 2012 to Fiscal Year Partnerships in 2013 (Ann. 2013-30)

Form 8804 Will Apply Tax Rates in Effect in 2012 to Fiscal Year Partnerships in 2013 (Ann. 2013-30)

Posted on 04/25/2013 by CCH

Change in Georgia Withholding Requirement for Partnerships with Nonresident Partners

Wade Wilson, CPA

On May 1, 2012 Governer Deal signed into law, House Bill 965 changing the withholding requirements on nonresidents effective for tax years beginning on or after January 1, 2012.  Previously, Georgia allowed withholding on distributions paid or credited to partners who are nonresidents of Georgia (including nonresident alien partners).  The law has been modified so that withholding is now determined based on the partner's share on taxable income sourced to the state.  The withholding tax rate is still 4 percent.

U.S. Income Tax Concerns for Nonresident Aliens Directly Owning and Renting U.S. Real Estate

Ashley Erwin, CPA

With interest rates and U.S. property values at all time lows, it is a great time to invest in U.S. real estate.  For individuals who are foreign to the United States (nonresident aliens for U.S. tax purposes), purchasing and renting U.S. residential and commercial real estate can be simpler than one might expect.   A nonresident alien should consider the following issues before, during and after purchasing rental real estate directly in the United States.

Question & Answer: Investing in U.S. Real Estate as a non-U.S. Resident

Ashley Erwin, CPA

Wilson LLP recently had an individual contact us regarding her father’s interest in purchasing a home in the United States for purposes of generating some rental income as well as capital appreciation. The following questions and answers are helpful to those interested in investing in U.S. real estate.

Disposition of a Closed-End U.S. Real Estate Fund Investment

Julie Armstrong, CPA

In the third and final part of this series, we discuss the ramifications of disposing of an investment in a U.S. real estate fund.  Part 1, Investing in a Closed-End Real Estate Fund, discussed the initial investment in U.S. real estate, while Part 2, Annual Income Tax Return Requirements for Nonresident Aliens Invested in U.S. Closed-End Real Estate Funds discusses the annual filing requirements associated with your investment.  While the same general principals apply to any disposition of any U.S. real estate, we will focus on the disposition of investment held via a partnership interest. 

Annual Income Tax Return Requirements for Nonresident Aliens Invested in U.S. Closed-End Real Estate Funds

Ashley Erwin, CPA

In the second part of this series, we discuss the U.S. tax filing requirements of a nonresident alien investor, and the various steps an investor needs to take in order to have a complete tax return. We also discuss the process of authorizing a CPA firm to handle an investor's tax return, and an overview of the various other forms associated with the U.S. Nonresident Alien Income Tax Return.

Investing in a Closed-End U.S. Real Estate Fund

Mary Ann Rosenberg, CPA

With strong performance in 2011, closed-end real estate funds still offer an attractive way for the foreign investor to invest in U.S. real estate.  Foreign investors considering investing in a closed-end fund have a complex set of rules to learn and several steps to follow to ensure they are properly complying with U.S. tax law.   In this article , the first of a three-part series, we hope to provide a helpful guideline for the foreign investor, with a general overview of what a closed-end fund is, a summary of  U.S. tax law, and a list of the steps that the investor needs to take to comply with U.S. tax law.

Taxes Prompt More Americans to Renounce Citizenship

CNBC

Given that most of us just got finished our tax returns and paying Uncle Sam, a few individuals are saying enough is enough and renouncing their citizenship.  Well, you can't just do that without tax consequences.  I loved this CNBC article on the "exit tax".  Obviously, the government thinks of everything.

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What's Next for Offshore Accounts?

Wall Street Journal

A recent article on the reporting requirements for individuals with offshore assets.

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