All Forum Posts by: Germán Rimoldi

Quote from @Carlos Ptriawan:

Quote from @Germán Rimoldi:

Quote from @Carlos Ptriawan:

Quote from @Germán Rimoldi:

Both income tax paid overseas for the capital earning and rental income can be used as a tax break. Income tax paid to the foreign can either be deducted or applied as a tax credit when filing your taxes in the US. Form 1116 is filed to claim the foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country.

Can you share other strategies to offsetting tax paid for real estate and STRs owned overseas?

 not becoming US citizen, so you don't pay US tax 

If someone is not a US citizen, but generates income in the US - is that income taxable in the US? 

 If they live in US then yes. There're lot of question around this in other forum and when tax liability is high enough, some is willing to get rid of their citizenship.

Hi Carlos Ptriawan! Which other forum do you recommend for this subject?
 

I'd like to understand how Rental Income and Capital Gains are taxed and forms to be filed with the IRS.

Quote from @Carlos Ptriawan:

Quote from @Germán Rimoldi:

Both income tax paid overseas for the capital earning and rental income can be used as a tax break. Income tax paid to the foreign can either be deducted or applied as a tax credit when filing your taxes in the US. Form 1116 is filed to claim the foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country.

Can you share other strategies to offsetting tax paid for real estate and STRs owned overseas?

 not becoming US citizen, so you don't pay US tax 

If someone is not a US citizen, but generates income in the US - is that income taxable in the US? 

Both income tax paid overseas for the capital earning and rental income can be used as a tax break. Income tax paid to the foreign can either be deducted or applied as a tax credit when filing your taxes in the US. Form 1116 is filed to claim the foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country.

Can you share other strategies to offsetting tax paid for real estate and STRs owned overseas?

Quote from @Don Konipol:

Quote from @Germán Rimoldi:

Both income tax paid overseas for the capital earning and rental income can be used as a tax break. Income tax paid to the foreign can either be deducted or applied as a tax credit when filing your taxes in the US. Form 1116 is filed to claim the foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country. 

What other strategies do you recommend?

Offsetting taxes paid to one country with a credit from another country is NOT any kind of strategy; you’re merely ending up with the same taxes you would have paid if operating in the U.S.  The U.S. is the only country in the world that taxes it’s citizens on worldwide income.

Right, to offset taxes paid to one country with a credit from another country is not a strategic way to reduce tax liability. By doing so, you are essentially ending up with the same amount of taxes you would have paid if you were operating solely in the U.S. In other words, the strategy of using foreign tax credits to offset U.S. taxes is not effective in reducing the overall tax burden for U.S. citizens because the U.S. tax system still considers worldwide income.

Both income tax paid overseas for the capital earning and rental income can be used as a tax break. Income tax paid to the foreign can either be deducted or applied as a tax credit when filing your taxes in the US. Form 1116 is filed to claim the foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country. 

What other strategies do you recommend?