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Tax Implications of International Investment

International Tax Attorneys

What are the tax implications of international investment?  Are you in full compliance with IRS offshore reporting requirements, FBAR and California tax disclosures? 

There are three primary international investment vehicles:

Mutual Funds
Exchange Traded Funds
American Depository Receipts (ADRs)

Foreign corporations are taxed by the sovereign tax authorities in their own nation. If a U.S. taxpayer were to pay taxes on the dividends earned through foreign corporate ownership, they face double taxation. The U.S. tax code usually provides a tax deduction or credit on taxes paid to a foreign government up to the rate you would pay in U.S. taxes. IRS Form 1116 is used for this purpose; however, there are occasions where a deduction might be the better strategy.

What are the tax implications of international investment for your unique circumstances? Allen Barron integrates a unique blend of international tax, accounting, business and legal services in a single source provider, headquartered in our San Diego offices. The world has significantly changed over the past several years, and the impact of FATCA upon investment and taxation around the world cannot be understated. Now more than ever, it is important to work with experts who can advise you across a broad spectrum of issues associated with foreign investment, from FBAR reporting to PFICs, to ensure accurate classification of offshore accounts income and full compliance with all IRS and state tax reporting requirements.

Generally speaking, the Foreign Tax Credit protects U.S. taxpayers who are investing in offshore vehicles from paying investment-related taxes twice.

U.S. Taxpayers are Taking a More Global Investment Perspective

While the stability of many regions around the world seems to change from moment to moment, the reality of recent global diversification has brought attractive investment opportunities around the world. U.S. taxpayers understand that market sectors may be more correlated to profitable returns than investing in specific countries; however, the tax implications of international investment across multiple strategies becomes more complex, and the penalties for failure to understand reporting requirements and tax ramifications of international investment continue to grow.

Global diversification and international investing may reduce the volatility of many portfolios, and the range of losses in periods of poor performance are smaller than many onshore alternatives. International transactions are, by their very nature, much more complex. International business and investment transactions involve joint ventures, real estate projects, mergers, acquisitions, shared services and other complex financial transactions.

The tax attorneys and accounting professionals at Allen Barron provide familiarity with foreign tax laws and international business practices for those who are investing in offshore companies and investments, as well as permanent residents and U.S. taxpayers who maintain offshore real estate ownership, foreign bank accounts and investments. We help you to make sense of the complex compliance requirements and fully understand the tax implications of international investment.



Practices Areas

Contact Us To Learn More About Allen Barron's Services

For more information or to discuss your tax, legal and accounting needs contact Allen Barron or call 866-631-3470 for a free and confidential initial consultation. Learn about the importance of integrated business strategy and coordination across legal, tax and accounting systems.

Offices of Allen Barron, Inc.

Main Office

16745 West Bernardo Drive, Suite 260
San Diego, CA 92127
Phone: 858-304-0947
Phone: 866-631-3470
Fax: 858-376-1410

San Diego Office

5720 Oberlin Drive
San Diego, CA 92121
Phone: 866-631-3470
Fax: 760-741-1410

Las Vegas Office

333 South Sixth Street, Suite 230
Las Vegas, NV 89101
Phone: 702-749-4430
Fax: 702-933-1748

San Diego Office

750 B Street, Suite 2610
San Diego, CA 92101
Phone: 619-702-8356
Fax: 619-923-8356

San Francisco Office

300 Montgomery Street, Suite 410
San Francisco, CA 94101
Phone: 415-481-0475
Fax: 415-762-1539

Phoenix Office

40 North Central Avenue
Phoenix, AZ 85004
Phone: 602-903-7018
Fax: 602-357-1655