What is FDAP Income?
U.S. source Fixed, Determinable, Annual or Periodic (FDAP) income is generally subject to taxation when amounts are paid to nonresident taxpayers. This article summarizes the key components of FDAP income.
Do I Pay Taxes on Foreign Income?
U.S. taxpayers are generally required to report their entire gross income from whatever source derived. This includes income from non-U.S. sources.
What Happens When a US Person Opens a Foreign Corporation? CFC Tax Rules
When a U.S. person opens a foreign corporation, they are often confronted with many additional tax filing obligations. The IRS Form 5471 is included with an income tax return to report the U.S. person's interest in the foreign corporation.
Can a Non-US Person Buy US Real Estate?
The U.S. real estate market is an attractive investment opportunity for many non-U.S. individuals and businesses. This article and video discuss the rules and tax implications for non-U.S. investors in U.S. real property assets.
IRS Form 8288 and 8288-A for the Sale of Real Estate by a Non-US Person
When U.S. real property is sold, and the seller is a nonresident, there are certain reporting requirements and federal withholding taxes which may apply.
Non-US Persons Pay Tax on US Source Income
Nonresidents of the U.S. are generally not subject to any U.S. federal income taxes unless they have U.S. source income. U.S. source FDAP income paid to nonresidents is subject to withholding taxes at source.
Did You Leave the USA? Update Form W-9 to Form W-8BEN…
If a non-U.S. citizen is temporarily living and working inside the USA, they are generally considered a U.S. tax resident. When the person leaves the USA, they revert back to being a nonresident for federal tax purposes.
Does a US Bank Account Make You Liable for US Income Taxes?
Many nonresidents of the United States often open bank accounts with U.S. based financial institutions. A common question and concern is what impact, if any, does that have on the individual's US tax obligations. This article covers the basics of nonresident taxation and whether US bank accounts create any tax liability.
Can a US Company Hire Non-US Persons to Work Remotely?
U.S. companies often hire employees and independent contracts that are not based inside the U.S. These remote workers may have certain U.S. tax obligations.
What Is the US Substantial Presence Test?
Nonresidents of the USA may become a U.S. tax resident if they are physically present in the U.S. for a certain number of days during the tax year. This article discusses the substantial presence test and what it means for non-U.S. persons.