Real estate investment trust (REIT) taxation Real estate investment trusts are companies that hold and manage earning real estate. They replace direct investments and allow even investors with limited personal capital to enjoy yields from earning real estate. In order to be considered an REIT, a company must meet...
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Interest taxation In most of the cases , Interest income taxation is accumulated for the taxpayer taxable income and taxed under regular negligible tax rates. Some bonds are exempt from tax according to section 103 of the American tax code. The best example is local authority and state bonds. For...
Form 8938 – Statement of Specified Foreign Financial Assets Form 8938 uses to report on specified foreign financial assets. The filling required if the total value of all of the assets in which you have an interest, exceeded the reporting threshold. Filing Form 8938 does not relieve you of the requirement...
Additional Child Tax Credit – Updates! Beginning in fiscal year 2016, there has been a crucial change to the guidelines for additional child tax credit. Children for which the credit is request who do not have either a Social Security Number (SSN) or an ITIN prior to the original filing...
Sole foreign proprietor of an LLC in the US? The Obama administration has left a surprise for you! Starting fiscal year 2017, a foreign (non-American entity) sole owner of an LLC will have to provide the US tax authorities with form 5472, an informative form reporting ownership of an...
EIN – Employer Identification Number An EIN (Employer Identification Number) identifies entities for tax purposes. You may use Form SS-4 to apply for an EIN. The EIN is a nine-digit number (for example, 12-3456789) which assigned to: Sole proprietors, corporations, partnerships, estates, trusts, and other entities for tax filing...
US citizen? Own shares in companies outside the United States? You must report it to the IRS ! US tax laws dictate that any American entity (individual, partnership, company, fund, etc.) that is either the management, shareholder, and/or forms a portion of ownership in a foreign company, must submit an annual...
Citizenship transferal from a US citizen to their offspring There are several popular options for citizenship transferal from a US citizen to their offspring. First option – natural born citizens. Eligible if the parent has resided in the US for at least five years, aged 14 or older for...
American passport holder, but did not pay your taxes? Prepare to have your passport revoked The IRS has begun revoking American passports in response to unpaid taxes. The IRS has recently announced it will begin notifying the Department of State of delinquent tax debt, leading to the revoking of...