If you have a bank account in a foreign country, you may need to disclose it to a branch of the government that fights financial crimes. This is what tax professionals call FBAR reporting. FBAR stands for Foreign Bank and Financial Accounts Report.
Category: International Tax
Tax Planning Spotlight: Qualified Small Business Stock
Foreign nationals looking to start a business in the United States often find that operating as a C Corporation is most desirable. One of the benefits of becoming a C Corporation is that they can issue Qualified Small Business Stock (QSBC). A QSBC is a U.S. C Corporation that upon sale, can have a 100%… Continue reading Tax Planning Spotlight: Qualified Small Business Stock
Understanding the Foreign – Derived Intangible Income Deduction (FDII)
By Howard Bakrins, Tax Director, Kutchins, Robbins & Diamond, Ltd. Previously published in the GGI International Tax Autumn 2019 Newsletter.
Foreign Bank & Financial Accounts
If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Department of Treasury by electronically filing a… Continue reading Foreign Bank & Financial Accounts
U.S. Taxation of Foreign Business Income
The TCJA shifts the U.S. corporate taxation of foreign earnings to a “quasi-territorial” system, which, for corporate shareholders of a foreign corporation, may result in no U.S. tax with respect to income of a CFC. However, ownership of a foreign corporation by a U.S. shareholder that is not a C corporation may produce less favorable… Continue reading U.S. Taxation of Foreign Business Income