As soon as a foreigner has been in the United States for 183 days in your first calendar year, their income is subject to U.S. Tax filing. However, it is not just the income they earn in the United States, but also the income they earn abroad, be it Venezuela, or another foreign country.
The United States Treasury has been demanding more and more disclosure from foreign banks, which has resulted in full disclosure of foreign income. Voluntary disclosure programs that started in 2009 in the wake of the criminal cases targeting UBS, resulted in partial amnesty of offshore income. This disclosure then led to more scrutiny by the United States and resulted in the taxing of foreign income. For example, if a foreigner sells their home abroad before coming to the United States and puts that money in a bank account at home, they have to disclosure the account and any interest income collected on it.
For many foreigners that have suffered devaluations in their own home currency, this can result in a huge loss of income. If there is more than one exchange rate, the IRS allows taxpayers to use the one that more properly reflects the foreigners true income.
For this and other tax implications on real property and investments in the United States, call our firm.
Attorney Jacqueline A. Salcines, Esq. is both a real estate lawyer and accountant with extensive experience representing buyers and sellers in their real estate property needs in Florida. As an attorney, accountant and title agent for Old Republic National Title Insurance, Inc., we provide a complete array of closing services. Consult with attorney Jacqueline Salcines, PA today with regard to:
- Review of Contract for Sale and Purchase
- Review of Contract Addendums
- Review of Condominium Riders
- Title search and examination
- Lien letters
- Incorporation for purchase
- Quit Claim Deeds
- Tax implications on purchase
- Survey requests
- Estoppel requests
- Lien negotiation
- IRS/Federal tax lien on property negotiations
- Seller docs
- Preparation of Purchase Money Mortgages and Notes
Meet with our real estate attorney today and put us to work for you. The first consultation is always free of charge. Or email attorney Jacqueline Salcines directly your real estate question at J.Salcines@salcineslaw.com
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