2018 Year-end tax planning

By Kyle Lodder, CPA As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Year-end planning for 2018 takes place against the backdrop of a new tax law—the Tax Cuts and Jobs Act—that make major changes in the tax rules for individuals and businesses. For individuals, there are new,…

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Next major international tax provision coming into effect soon (Hint: “GILTI”)

By Kyle Lodder, CPA In December 2017, Congress passed into law sweeping tax reform with the Tax Cuts and Jobs Act. There are a few provisions that impact international taxation quite significantly. One major change went into effect immediately during the 2017 tax year – the Section 965 repatriation tax. We’ve previously written on this topic. You can read more about this law here. It’s a one-time transition tax that…

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Details of major U.S. tax reform bill, including international tax details

by Kyle Lodder, CPA The recently enacted Tax Cuts and Jobs Act (TCJA) is a sweeping tax package. Here’s a look at some of the more important elements of the new law that have an impact on individuals and businesses, along with specific international provisions. Individuals Unless otherwise noted, the changes are effective for tax years beginning in 2018 through 2025. Tax rates.The new law imposes a new tax rate…

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Forms 1099 due January 31 – deadline quickly approaching!

By Dustin Wielenga, CPA Many companies, as well as individuals with business activities, are required to file Forms 1099. This includes self-employed individuals, or individuals with rental properties. The filing deadline is as early as January 31 of each year, so it is important to act quickly. What is Form 1099? There are a couple of different Forms 1099. They are used to report payments made by a business to…

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New U.S. tax law for owners of non-U.S. corporations – action to consider by year-end!

By Kyle Lodder, CPA President Trump has signed significant U.S. tax legislation into law today, namely the “Tax Cuts and Jobs Act”. There are many favorable tax provisions that will benefit many taxpayers, for individuals and businesses. But there are also some quite unfavorable international tax provisions which may adversely impact business owners of non-U.S. corporations. One specific new provision relates to U.S. persons who own an interest in a non-U.S. corporation. Under prior…

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U.S. tax residency: Tax traps for the unwary

By Kyle Lodder, CPA The United States continues to be an attractive destination for non-residents to invest their time or money, especially in real estate or business expansion. However, spending significant time in the U.S. could be a tax trap for the unwary.  It’s advisable for the nonresident to receive U.S. tax advice if spending considerable time in the U.S. and prior to obtaining a U.S. green card and/or U.S.…

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Foreign business expansion into the U.S.

by Kyle Lodder The United States continues to be a large and stable economy and an attractive destination for non-U.S. companies to expand and grow their business. Even though it’s an attractive market for businesses to penetrate, foreign business owners often experience difficulty navigating the complex tax, legal and regulatory rules. Therefore, it’s critical that one engages a qualified team of advisors as one enters the U.S. market. Proper planning…

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U.S. Estate Planning for Non-U.S. Persons

by Kyle Lodder Estate planning is often a forgotten element when non-U.S. persons plan their investment into U.S. real estate or business expansion into the U.S. As a result, many non-U.S. persons are unknowingly exposed to U.S. estate tax or other related land mines in connection with their U.S. investments due to incomplete planning focused on the corporate and/or personal income tax consequences. However, estate planning is an important piece…

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Foreign Investment in U.S. Real Estate

by Kyle Lodder The purchase of U.S. real estate has been a long-time attraction for non-U.S. investors, often due to purchasing beautiful property at stable market prices. Careful planning should be done before acquiring U.S. real estate in order to avoid unexpected tax consequences down the road.  Among the items that should be considered are: The expected use of the property (primary residence, vacation home, rental property, investment property, development…

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