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The Potential Tax Impact of Foreign Investments for U.S. Taxpayers

A common strategy many wealth management firms recommend is ensuring that as much as 30% of your portfolio includes foreign investments and securities.  What is the potential tax impact of foreign investments? One of the keys to maximizing the advantages of offshore investment involves management of the effects of taxation...

Costly Facts About IRS PFIC Rules US Taxpayers Should Know

What are some other unfortunate and costly facts you must know about IRS PFIC rules and your investments?  There has been a growing issue with Passive Foreign Investment Company or PFIC designations by the IRS.  US taxpayers are consistently surprised to learn that their investment qualifies under IRS PFIC rules....

Updates on Offshore Investments and IRS FBAR Reporting Requirements

The world is still unpacking the impact of FATCA and the IRS' intent to track offshore bank accounts, investments and corporations.  The result is continuing pressure on offshore investments and IRS FBAR reporting requirements including PFIC tax calculations and the continuing expansion of 50% penalties on specific institutions identified by...

The California Waters Edge Election

What is the California Waters Edge Election and how does that affect taxation for certain taxpayers with offshore business income and assets?  The California water's edge election was established in 1986 and was designed to restrict California's "application of the worldwide combined reporting method of determining income from California sources."  Instead...

World Leaders Developing New Standards to Identify and Exchange Beneficial Ownership Information

The goal of financial transparency worldwide is gaining momentum.  The US FATCA initiative has spawned like legislation around the globe.  The benefit of taxation derived from the discovery of offshore taxpayer financial accounts and interests has world leaders developing new standards to identify and exchange beneficial ownership information for bank...