International Nesties
Publius
member
Dear Community,
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Tax and FBARA: Record number of Americans renounce citizenship last year
http://www.cnbc.com/id/47064295
Exert: "Americans abroad are terrified. We've had people pay tens of thousands of dollars in fines. We've had people . pay huge amounts of back taxes," she says. "Up to this point, we never heard of anyone renouncing, or if they did, they didn't talk about it," says Serrato, who says her group does not advocate renunciation.
"Now," she says, "we're seeing a lot of people speak openly about it and come to us for information."
Re: Tax and FBARA: Record number of Americans renounce citizenship last year
http://www.cnbc.com/id/47064295
Use brackets [these] instead to make it clicky
I've clearly been away from the Nest for too long.
Renunciation will cost you something like $500 or $1000. It used to be free!
I cannot say this enough: F U, America!
The IRS always gets the last laugh. If you cannot certify that you have complied with all IRS requirements for the 5 years prior to your expatriation date, you become a certified expatriate. Which thanks to IRS code section 887A (passed by those crooks in Congress as part of the HEART law) means you are now subject to income tax on the net unrealized gain on your world-wide property.
Which in plain English means that they basically say what was all your property worth the day before you renounced? Then pretend you sold it all that day and tax you on the gain.
And you can't forget to file Form 8854 with the IRS.
If giving up my US citizenship wouldn't render me stateless I would so do it.
It's not your average income. It's your average net income tax liability. It goes up every year too. 2010 it was $145,000 and for 2011 it was $147,000.
There is also a third way to qualify as a covered expatriate is to have a net worth of $2,000,000 or more.
This is scary. Ugh.
The first year of our marriage I can't legally work (India's rules) so I wonder how that will work (since it says you can get in trouble if you don't file). I do know I'll never be legally allowed to own a home in India (Ryan can of course, but it'd have to be in his name only) so that might actually be a good thing...
Yeesh.
"I will greatly rejoice in the LORD, My soul shall be joyful in my God; For He has clothed me with the garments of salvation, He has covered me with the robe of righteousness, As a bridegroom decks himself with ornaments, And as a bride adorns herself with her jewels." -Isaiah 61:10 NKJV
From my research and from what my mom asked the accounts her firm works with you don't have to do anything. For 2011 I didn't work at all, never had a pay stub, ect. My name wasn't on his Swiss bank account either so I don't have the issue of the $10,000 assets in foreign bank accounts.
H filed his taxes for 2011 at the beginning of the year for the few months he worked in the US so far.
I guess there was a positive of not working part/full time while living in Zurich. I'm so glad I don't have to deal with what some of you have to do.
2012 Reading Challenge
Now Nesting from Chicago, IL My nail blog:
I am out of the loop here. What is the point of the FBARA? It seems that it is the first year I have to file it. What is the IRS going to do with the information? Do you have to pay something for having money in a foreing bank account?
I always file with the IRS, except last year when I didnt work. I always file married, filing separately because my DH is not American.
I think I need an accountant.
The bank account reporting doesn't go to the IRS, it goes to the treasury department. They're trying to keep people from holding cash abroad as a tax shelter, but they're making it damn difficult to be an American who lives abroad.
Why does the FBARA make it difficult for Americans to live abroad?
I really have no idea.
I know, it is sad.
Thanks for the info Publius. You are the best!!
"The first regulation requires all Americans, including those living abroad, with at least $10,000 in overseas bank accounts, to file a supplementary form disclosing all of their foreign accounts. That includes any accounts in which the U.S. citizen has a financial interest. That could include a joint account with a spouse or child, accounts for corporations in which the American owns more than 50 percent of the value of shares of stock, or any trust or estate that benefits the U.S. citizen."
So if I don't have any privileges with DH's account, does it still mean I have "a financial interest"?
Very good question!!!!
Are you sure that the IRS can't access the info (even if we are sending it to the Treasury)? Our CPA said one of the reasons for the disclosures is so the IRS can do a "check and balance" to ensure we haven't misstated our income for tax purposes.