A U.S. friend trying to figure out his tax situation after moving overseas recently used the word “tiresome” to explain his position on U.S. taxes offshore. Specifically, he was referring to all the forms he now may or may not need to file. Does he meet the threshold for filing the FBAR and Form 8938? […]
“You’ll notice that Lief is in his office as usual,” I wrote this morning to our Panama City staff. “However,” I continued, “he asks that you pretend that he’s not. That is, except in case of critical emergency or dire need, please steer clear of Lief’s desk today.” Tomorrow is Tax Day for us and […]
A Humble Suggestion For The IRS If you haven't completed your FBAR form (TD F 90-22.1) for 2012, here's a heads up: The deadline is less than two weeks away. Remember that postmarking the form by June 30 isn't good enough. The Treasury Department must receive the thing by June 30. Completing my FBAR was my weekend project. I'll [...]
Addressing The Plight Of The Middle-Class Millionaire A friend in the tax business told me today about a law firm he knows that targets clients with net worths of US$100 million or more, the ultra-high-end of the wealth management market. That's a market with fewer than 3,000 potential clients in the United States. Still, the [...]
Late Tax Filing Concerns Of The American Abroad The tax filing deadline for U.S. persons was Monday. Today, the IRS, in its "Tax Tips" e-letter, detailed the penalties for not filing your 1040 form on time. In fact, you face two potential penalties related your 1040 form. Failure to file on time and failure to [...]
Is It Really Possible To Reduce Your U.S. Tax Bill By Going Offshore? Today is tax day in the United States. Too late to do anything about your 2012 taxes other than to file a last-minute extension if you need to. Meantime, you can (and should) begin to think about ways to mitigate and manage [...]
The Death Of The 4% Rule (And What That Means For Retirees Overseas) Friend and colleague Paul Terhorst forwarded me an article from the Wall Street Journal(WSJ) that talks about the death of the 4% rule. Paul writes a column for the Overseas Retirement Letter about the financial aspects of retiring overseas, so this kind of thing gets [...]
The most important tool in the U.S. expat’s tax toolbox is the foreign-earned income exclusion (referred to in tax-planning circles as the FEIE or ‘the exclusion’). If you qualify, it allows you to exclude up to US$97,600 in 2013 foreign-earned income from U.S. federal income tax.
What This Week's Fiscal Cliff Deal Means For Americans Overseas As it stands today, the 11th hour fiscal cliff deal approved earlier this week resulted in US$1 of spending cuts for every US$41 in tax increases, making it possibly the most one-sided victory since the Battle of Little Bighorn. By comparison, when President Ronald Regan [...]
How To Go Offshore: You Can Do It Yourself (Shocker) This week's Offshore Summit has been organized around a series of panel discussions, one for each of the Five Flags being considered. Yesterday morning, Mark Nestmann, one of the world's leading experts in offshore residency and second citizenship, led a panel discussion related to choosing [...]
Offshore Living Letter is a publication of Live and Invest Overseas. Our goal is to provide timely, actionable information on all things offshore, including: how to go offshore, diversifying your portfolio, wealth creation, protecting your assets, and much more.
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