As always, great information. My question: once a US citizen establish/start an LLC in Dubai of crypto, will he/she be liable for paying US tax on income or profit earned? thank you in advance for your answer.
Can you do one for Massachusetts? That is where I live and from my understanding, Massachusetts doesn’t recognize the foreign tax credit nor will it honor the for an exclusion unless you’re moving to Canada. As I see it right now, my only option is to move to state tax zone. Stay there for a couple years then leave.
Q; For US citizens, since capital gains is treated as ordinary income in the US, does the FEIE tax include cap gains then too? or is the earning and taxation different? thanks!!
I am a Retired US Citizen living in Costa Rica. I have no State of Record. And my wife Costa Rican Citizen University Professor, has been denied a US Tourist Visa 3 times and will never apply again. So naturally has no SSN to file with me or Separately. Only income is SS Retirement. Only reason to file is to receive that 3rd Stimulus Check. I did receive the first two. Banking is a real problem. My bank in the US keeps screwing up. I did well several years ago in Nicaragua banking with BAC. However after 2 years a form was mailed from the US to continue. And Nicaragua had not had mail delivery the past 5 years. Any advice or help would be appreciated.
Follow up. July 2, I opened banking in Costa Rica. Gone is my banking and financial assets in the US. And unlike Nicaragua the Costa Rica Postal system operates much better than the USPS. The US Ambassador appointed by Trump and responsible for denying my wife a visa will be replaced Wednesday by a new Ambassador appointed by Biden. But my wife as well as myself have no desire to ever go to the UIS for even 1 hour.. I get treated far better in other countries for my 34 years US military service with Vietnam and other combat area service. Including of all things Vietnam who offers the Free Tunnel Tour to see why the US lost that war. They forgive all those who served there. I even can receive better free medical treatment as a US Veteran in a country invaded by the US less than 25 years ago
I'm living in Bulgaria and US citizen. I want to invest in stock but worried about being double taxed. Will my stock gains be part of my 100k income exclusion?
US Virgin Islands, has a similar tax arrangement like Puerto Rico called USVI EDC . It gives you a 90% reduction in comportate and personal tax but unlike the Puerto Rico program only applies to specific industries and you’ll need to employ at least 5 or 10 residents to qualify. The only pro I see is that it’s a hedge against the fact that Puerto Rico may be admitted to the union , in which case Act20/22 won’t apply anymore.
Yeah I've rarely found cases where US Virgin Islands program is really attractive. Not sure if you've been there but it's not like there's an abundance of high skill local talent and it's not a large market to sell to.
Nope not me. I paid SS taxes over 57 years. I am now on the collecting end. My wife a Costa Rican Citizen who has never been to the US and would never care to go makes the real income 100% Income tax free in US, Costa Rica as well as China the source of the income. My wife has never received now will ever receive benefits from the US. Such as SS Survivors Benefits that can only be given to someone with a SSN. Fair enough. US will receive nothing from her. Amounting to $97,600 a month.
How about taxation on investment income and not earned income. ie. I am a US citizen. I live in the Philippines full time. I have a Philippine bank account. I get investment income from a farm rental in Europe. Is this investment income taxed if I have it deposited to my Philippine bank account and not USA bank. If no tax in USA do I have to pay tax in the Philippines? Could I avoid all of this tax by setting up the investment and placing it into self directed Roth Ira?
Yes as an American you're taxed on your full worldwide income it doesn't matter where the assets are or where the bank account is. As for Philippines you shouldn't be taxed there based on the territorial tax system but can't say for sure without properly reviewing your case. Regarding avoiding the US side is the investment eligible to be placed in a self directed IRA?
@@MichaelRosmer Yes, and that was my second and best option. I think I have decided to go with a Roth self directed IRA for both me and my wife. Double the fees for setup and annual fees but no tax. I think this will be the best option. Thanks.
Hello - thanks for sharing this info. I plan on moving to sweden from USA and I'm a US citizen. You mentioned, Sweden has higher tax, does this mean I still have to pay dual taxes? TY
As a US citizen, you'll always have to file your taxes there (as long as you hold the citizenship). There is a tax treaty between US and Sweden which makes things a bit easier, you can look into it
This is an incredibly rosy picture of a truly disastrous situation that has sent tens of thousands to embassies to renounce and tens of thousands seek to join them and are waiting in line, hence you can wait close to two years to get an appointment in some places. The FEIE which you claim is a huge benefit and tax free is baloney, it is limited tax relief from double taxation by the USA (how nice of them!) and is taxed where people live, it is not tax free. Secondly, the FEIE applies only to one narrow band of income that can usually be described as salary, any income or gains outside of that are fair game for the IRS. Tax credits sound fine, until local tax is low or non-existent and US tax is massively and deliberately punitive, this tends to happen where your nation of residence encourages you to save for old age but the USA says the vehicles are PFIC (foreign, look out!) and applies deliberately confiscatory taxation. While additional US taxes are the most likely way you will find yourself poorer than your neighbours when you live abroad, double taxation absolutely exists and treaties are only partially effective in eliminating it and especially with the USA new found tendency to create fake income abroad just as they did with Section 965 and GILTI that saw people losing large chunks of their retirement fund to the IRS dating back to 1986, actually realising that money to pay the IRS raised further bills with domestic tax authorities. But long before the thieving USA tries to confiscate your "foreign" retirement funds, here is the issue.... The USA is clearly, demonstrably treating citizens abroad as criminals required to prove their innocence, second class US citizens to the core. The reporting regime is insane, it's closer to an inquisition than normal tax returns. Look at the associated penalties for errors or omissions, they are INSANE! The data required on an FBAR would require a warrant in the USA, and files with a criminal investigation agency?! The penalty if failure to comply with this warrantless search is deemed wilful? Circa $140,000.00 per unreported year. Then you have FATCA, as if it were not enough that the US is persecuting their citizens abroad, the rest of the world has been forced to join in and strip any US suspects of various protections, freedoms and rights so that all their personal data goes back to the IRS, again data that would normally require reasonable suspicion and a warrant. But we are not finished yet, oh no.... The entire reporting, taxation and penalty regime is infectious extending to employer, business and business partners, financial institutions that would have you as a client, the fellow owners of the condo block and most of all, spouse and family. I have to tell you, foreigners don't like this one little bit and this has resulted in what has become known as the "toxic citizen" that you don't employ, go into business with, have as a client in your financial institution, let buy a apartment in the condo block and for the love of god, do NOT marry one. And if anybody ever reads this and thinks it got to be nonsense, please do pick out what you do not believe and hold me to task. Land of the free, my ass.
Hello we hope all is well with you? we have been extremely busy and we got stuck out in Malta so now we are playing catch up with everyone. We ask your forgiveness for taking so long to reconnect. Love and Light Sarah and Glenn
such BS the USA and Eritrea are the only two Countries that have this law and let's be honest eritrea is such a small country doesn't even really count
Simply there is no upside... Being in compliance is so difficult it is an oxymoron, not to mention the expense. Renounce and MOVE.
They have increasingly raised the costs of compliance, which might be an even bigger tragedy
As always, great information. My question: once a US citizen establish/start an LLC in Dubai of crypto, will he/she be liable for paying US tax on income or profit earned? thank you in advance for your answer.
Can you do one for Massachusetts? That is where I live and from my understanding, Massachusetts doesn’t recognize the foreign tax credit nor will it honor the for an exclusion unless you’re moving to Canada. As I see it right now, my only option is to move to state tax zone. Stay there for a couple years then leave.
Great clip… question lets say I'm getting a pension... I move to said country for 183 days
1. Panama
2. Puerto Rico
What the highest tax bracket?
Q; For US citizens, since capital gains is treated as ordinary income in the US,
does the FEIE tax include cap gains then too? or is the earning and taxation different? thanks!!
FEIE is only for earned income - Employment/Self employment
I am a Retired US Citizen living in Costa Rica. I have no State of Record. And my wife Costa Rican Citizen University Professor, has been denied a US Tourist Visa 3 times and will never apply again. So naturally has no SSN to file with me or Separately. Only income is SS Retirement. Only reason to file is to receive that 3rd Stimulus Check. I did receive the first two. Banking is a real problem. My bank in the US keeps screwing up. I did well several years ago in Nicaragua banking with BAC. However after 2 years a form was mailed from the US to continue. And Nicaragua had not had mail delivery the past 5 years. Any advice or help would be appreciated.
Follow up. July 2, I opened banking in Costa Rica. Gone is my banking and financial assets in the US. And unlike Nicaragua the Costa Rica Postal system operates much better than the USPS. The US Ambassador appointed by Trump and responsible for denying my wife a visa will be replaced Wednesday by a new Ambassador appointed by Biden. But my wife as well as myself have no desire to ever go to the UIS for even 1 hour.. I get treated far better in other countries for my 34 years US military service with Vietnam and other combat area service. Including of all things Vietnam who offers the Free Tunnel Tour to see why the US lost that war. They forgive all those who served there. I even can receive better free medical treatment as a US Veteran in a country invaded by the US less than 25 years ago
I'm living in Bulgaria and US citizen. I want to invest in stock but worried about being double taxed. Will my stock gains be part of my 100k income exclusion?
100k exclusion is for earned income not on investment. You are still subject to capital gains tax.
US Virgin Islands, has a similar tax arrangement like Puerto Rico called USVI EDC . It gives you a 90% reduction in comportate and personal tax but unlike the Puerto Rico program only applies to specific industries and you’ll need to employ at least 5 or 10 residents to qualify. The only pro I see is that it’s a hedge against the fact that Puerto Rico may be admitted to the union , in which case Act20/22 won’t apply anymore.
Yeah I've rarely found cases where US Virgin Islands program is really attractive. Not sure if you've been there but it's not like there's an abundance of high skill local talent and it's not a large market to sell to.
The only publicized success story outside of rum production and hotels I’ve heard of is Jefferey Epstein’s “family office”
@@georgeweatherspoon8328 yeah I know of a few others but they are rare
Does this tax break apply to people working remote but employed in the U.S.?
Even if you exempt the 100K of foreign earned income, you will still be liable to pay social security contributions.
That depends, not necessarily if you structure it right
Nope not me. I paid SS taxes over 57 years. I am now on the collecting end. My wife a Costa Rican Citizen who has never been to the US and would never care to go makes the real income 100% Income tax free in US, Costa Rica as well as China the source of the income. My wife has never received now will ever receive benefits from the US. Such as SS Survivors Benefits that can only be given to someone with a SSN. Fair enough. US will receive nothing from her. Amounting to $97,600 a month.
How about taxation on investment income and not earned income. ie. I am a US citizen. I live in the Philippines full time. I have a Philippine bank account. I get investment income from a farm rental in Europe. Is this investment income taxed if I have it deposited to my Philippine bank account and not USA bank. If no tax in USA do I have to pay tax in the Philippines? Could I avoid all of this tax by setting up the investment and placing it into self directed Roth Ira?
Yes as an American you're taxed on your full worldwide income it doesn't matter where the assets are or where the bank account is.
As for Philippines you shouldn't be taxed there based on the territorial tax system but can't say for sure without properly reviewing your case.
Regarding avoiding the US side is the investment eligible to be placed in a self directed IRA?
@@MichaelRosmer Yes, and that was my second and best option. I think I have decided to go with a Roth self directed IRA for both me and my wife. Double the fees for setup and annual fees but no tax. I think this will be the best option. Thanks.
Hello - thanks for sharing this info. I plan on moving to sweden from USA and I'm a US citizen. You mentioned, Sweden has higher tax, does this mean I still have to pay dual taxes? TY
As a US citizen, you'll always have to file your taxes there (as long as you hold the citizenship).
There is a tax treaty between US and Sweden which makes things a bit easier, you can look into it
This is an incredibly rosy picture of a truly disastrous situation that has sent tens of thousands to embassies to renounce and tens of thousands seek to join them and are waiting in line, hence you can wait close to two years to get an appointment in some places.
The FEIE which you claim is a huge benefit and tax free is baloney, it is limited tax relief from double taxation by the USA (how nice of them!) and is taxed where people live, it is not tax free. Secondly, the FEIE applies only to one narrow band of income that can usually be described as salary, any income or gains outside of that are fair game for the IRS.
Tax credits sound fine, until local tax is low or non-existent and US tax is massively and deliberately punitive, this tends to happen where your nation of residence encourages you to save for old age but the USA says the vehicles are PFIC (foreign, look out!) and applies deliberately confiscatory taxation.
While additional US taxes are the most likely way you will find yourself poorer than your neighbours when you live abroad, double taxation absolutely exists and treaties are only partially effective in eliminating it and especially with the USA new found tendency to create fake income abroad just as they did with Section 965 and GILTI that saw people losing large chunks of their retirement fund to the IRS dating back to 1986, actually realising that money to pay the IRS raised further bills with domestic tax authorities.
But long before the thieving USA tries to confiscate your "foreign" retirement funds, here is the issue....
The USA is clearly, demonstrably treating citizens abroad as criminals required to prove their innocence, second class US citizens to the core. The reporting regime is insane, it's closer to an inquisition than normal tax returns. Look at the associated penalties for errors or omissions, they are INSANE! The data required on an FBAR would require a warrant in the USA, and files with a criminal investigation agency?! The penalty if failure to comply with this warrantless search is deemed wilful? Circa $140,000.00 per unreported year.
Then you have FATCA, as if it were not enough that the US is persecuting their citizens abroad, the rest of the world has been forced to join in and strip any US suspects of various protections, freedoms and rights so that all their personal data goes back to the IRS, again data that would normally require reasonable suspicion and a warrant.
But we are not finished yet, oh no....
The entire reporting, taxation and penalty regime is infectious extending to employer, business and business partners, financial institutions that would have you as a client, the fellow owners of the condo block and most of all, spouse and family.
I have to tell you, foreigners don't like this one little bit and this has resulted in what has become known as the "toxic citizen" that you don't employ, go into business with, have as a client in your financial institution, let buy a apartment in the condo block and for the love of god, do NOT marry one.
And if anybody ever reads this and thinks it got to be nonsense, please do pick out what you do not believe and hold me to task.
Land of the free, my ass.
Hello we hope all is well with you? we have been extremely busy and we got stuck out in Malta so now we are playing catch up with everyone.
We ask your forgiveness for taking so long to reconnect. Love and Light Sarah and Glenn
Sounds good have fun in Malta
I didn’t know me living in Bali make me have to pay for the us Air Force
such BS the USA and Eritrea are the only two Countries that have this law and let's be honest eritrea is such a small country doesn't even really count
It's true though there's talk of other countries implementing the same.
Philippines
@@MichaelRosmer which countries
@@ricardorodriguesrr18 Canada, France has discussed, etc
You know patriotic Americans say to people, “if you don’t like it here then leave”, but then this citizenship based taxation happens.
Yup. That sucks. Do you see renouncing as a solution?
talking a little slower would help!