税务规划
Tax Planning
For families who have just immigrated or split time between countries, the most important date on the tax calendar is often the day they become U.S. tax residents, because from then on worldwide income is reported to the IRS. Our enrolled agent and partner CPAs prepare individual and business returns, and work out the tax consequences before decisions like immigrating, selling a home or a company, or receiving a gift from parents.
FAQ
Questions families ask
When do I become a U.S. tax resident?
Green card holders are U.S. residents for tax purposes. Without a green card, it comes down to days in the U.S.: at least 31 days this year, and a total of 183 days counting all of this year’s days, one-third of last year’s and one-sixth of the year before, which is called the substantial presence test. Students and scholars on F or J visas can exclude their days for a limited number of years, so members of the same family can have different tax statuses.
Which assets should I deal with before immigrating?
Gains a person realizes on foreign assets before becoming a U.S. tax resident are generally not taxed by the U.S.; sell after becoming a resident, and the gain is reported in the U.S., usually measured from the original purchase price, since immigrating does not reset the cost basis. Highly appreciated stock, company shares or real estate should therefore be reviewed before your status changes, taking into account tax in your home country as well. This work is best started before the immigration timeline is set.
My parents send me money from overseas. Is it taxable?
U.S. gift tax falls on the giver, so a child generally owes no tax on cash gifts from parents who are not U.S. persons. But a U.S. tax resident who receives more than $100,000 in a year from a nonresident alien (and related persons) must report it to the IRS on Form 3520, and the late-filing penalty is 5% of the gift per month, up to 25%. It also matters to keep gifts, loans and assets held on someone else’s behalf clearly separate, both for source-of-funds documentation and for future tax treatment.
Do I need to report foreign bank accounts?
A U.S. tax resident whose foreign financial accounts total more than $10,000 at any point in the year must file an FBAR (Report of Foreign Bank and Financial Accounts), due April 15 with an automatic extension to October 15. Families with larger holdings may also need Form 8938, and foreign companies and trusts each have their own reporting forms. Most of these forms don’t create tax on their own, but the penalties for missing them can be severe, so families who have fallen behind should first assess which compliance program fits before filing anything.
What is the difference between an EA and a CPA?
An enrolled agent (EA) is licensed directly by the IRS and can represent taxpayers before the IRS on any tax matter, including returns, audits and appeals; a CPA is licensed by a state and can also perform audits and prepare financial statements. At MMG, the EA handles individual and business returns and tax planning, and partner CPA firms take on audit work or more complex business accounting.
