A 1031 exchange, named after Section 1031 of the Internal Revenue Code (IRC), is a powerful tool for real estate investors. It allows for the deferral of capital gains taxes when one investment property is sold and another "like-kind" property is purchased within a specified time frame. This guide covers all the essential aspects [...] Read more
Investing in U.S. real estate can be a great opportunity for foreign investors, offering potential for significant returns. However, it's crucial to understand the regulations that governs such investments. One key regulation that foreign investors must navigate is the Foreign Investment in Real Property Tax Act (FIRPTA) withholding. In this article, we outline what [...] Read more
For foreign investors seeking to establish a business presence in the United States, the Single Member Limited Liability Company (LLC) serves as an attractive and flexible option. Understanding the tax filing requirements for a foreign-owned Single Member LLC, classified as a disregarded entity by the Internal Revenue Service (IRS), is crucial to ensuring compliance [...] Read more
Deciding to live as a U.S. citizen or a green card holder (lawful permanent resident) outside the United States comes with its own set of financial responsibilities. Even though you're in a different part of the world, the IRS still expects you to follow the rules. That means filing income tax returns, dealing with [...] Read more
Tax credits can either lower what you owe in taxes or increase your refund. Some credits might even give you money back, even if you don't owe taxes. These credits are like helpful tools from the government, encouraging good actions. They're not just about saving money but also about making things better, like supporting [...] Read more
Beneficial Ownership Information Reporting (BOI) stands as a critical component in financial transparency, aiming to combat money laundering and illicit financial activities. Filing BOI reports with the Financial Crimes Enforcement Network (FinCEN) is a mandatory process for various entities, ensuring a clearer understanding of the individuals behind a company or entity. Below you can [...] Read more
If you are a cryptocurrency investor or receiving payments for your products or services in cryptocurrency, be aware that cryptocurrency transactions are under the radar of IRS now more than ever. Before getting into the topic, let’s define cryptocurrency. For federal tax purposes, cryptocurrency is a virtual currency and treated as property. It’s not [...] Read more
Even though we are in the middle of the tax season, some of you may still haven’t received all your tax forms yet. You must make sure to receive all your forms before filing your tax return. If you do not include income statements, this will cause an IRS audit and you may owe [...] Read more
With effects of Covid still impacting the economy, it’s not too soon to start looking forward to next year’s return as 2021 seems to be another tricky tax year, here’s what you can do to stay prepared. Stay On Top of Your Important Documents and Information Federal threshold for issuing the 1099-K will drop [...] Read more
Unemployment, stimulus payments, working from home and even that side income are few of many things that may impact the way taxes will be filed this year. In this article we will cover the impact of pandemic on tax filing and other topics for tax year 2020. Unemployment Unemployment income is taxable, and [...] Read more