FATCA implementation may be delayed again. Let's hope we get a Christmas present of yet another delay to some of the worst legislation ever created. Here is a little blurb from the nice folks at Forbes:
Will FATCA Ever Go Into Effect? - Forbes
http://news.google.com Thu, 12 Dec 2013 15:42:10 GMT
Channel TelevisionWill FATCA Ever Go Into Effect?ForbesThe Foreign Account Tax Compliance Act seems to be revolutionizing the way governments share tax information. Other nations are using intergovernmental agreements to piggyback on FATCA informatio ...
But this is an aside. The real reason I am writing this is because it's near the end of the year and even though Christmas is upon us, you need to know a little something for planning purposes. A number of times I've been presented with tax situations that have been complicated by the fact that the US citizen involved owns 10% (or more) of a company, whether it's an S.A., Sp.A., Limitada or other. Ten percent seems to be a magic number in several different ways and I'd like to point out that you will save yourself a lot of trouble if you only own 9.99% instead. Tax law and regulations seem to look for 10% over and over again. If you want specifics, subscribe to my free update service. I'll be explaining things in more detail with my next broadcast.
End of the year has now become even more stressful for Americans who migrated who needs to file for their foreign earned income tax credit.
ReplyDeleteBrendon, it might not be as bad as you think. If you paid tax in Chile you can get credit for it but you may be better off electing to take the Foreign Income Exclusion which will be up to $ 97,600 for 2013. There are conditions, of course, but that would be a good first strategy.
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