When foreign businesses enter the United States, they encounter a myriad on unfamiliar business, legal, and tax questions. Should a formal business entity be set up? If so, what should the entity be and where should it be located? How should that entity be structured to best match the foreign parent’s or owner’s global business, legal, and tax strategies? Deprez Tax Law consults with foreign businesses in addressing these and ancillary questions in order to plan for a profitable presence in the United States.
Ownership of United States Real Estate by Foreign Persons
In contrast to many other countries, the United States doesn’t have many restrictions on foreign persons buying real estate in the United States. There is, however, a specialized set of income tax rules aimed at foreign persons buying, holding, and selling United States real estate that the foreign persons have to effectively navigate. In fact, these rules also incorporate United States persons buying United States real estate from foreign persons. In addition, the standard United States tax rules and opportunities that exist with respect to real estate are likely very different than what the foreign person is familiar with from their home country.
Pre-immigration Tax Consulting and Planning
The United States taxes individuals on worldwide income. Once a foreign person obtains a green card, they are taxable on their worldwide income (with very few exceptions). A foreign individual may even fall under these United States tax rules before they obtain a green card based on the amount of time they spend in the United States and the sources of their income. It is crucial for any individual on the path toward a green card or spending significant time in the United States – on any kind of visa (or without a visa) – to obtain expert advice in order to understand their United States tax and ancillary filing obligations and minimize their current and future United States taxes on their United States and foreign income.
The United States taxes United States individuals on their worldwide income. This means that living and earning your income outside the United States does not alleviate your U.S. income tax and ancillary filing obligations. United States individuals for this purpose includes U.S. green card holders and potentially others that have spent significant time in the United States. Deprez Tax Law helps outbound individuals plan for and meet their United States tax obligations and integrate these with obligations in the new countries where they reside and earn income.
U.S. companies doing business in foreign countries incur often unfamiliar tax obligations in those countries. In addition, the income earned in foreign countries may be subject to United States taxes. Deprez Tax Law assists clients in efficiently navigating these tax obligations.
Deprez Tax Law also assist such businesses in planning, structuring, and complying with the transfer pricing rules that govern the transactions between their domestic and foreign subsidiaries.
Tax Treaty Analysis
The United States has a network of sixty-six income tax treaties, which means businesses and individuals may have tax obligations and opportunities different than the standard statutory obligations that exist when no income tax treaty is present. Deprez Tax Law counsels clients on the implications and opportunities that these income tax treaties present.