Schedule D from a programmer’s point of view

Schedule D as an algorithm.  An interesting perspective. Check out the carefully crafted flow chart that describes the thinking you need to do in order to compute capital gains tax. It is shocking to think that this logic comes from the District of Columbia rather than Colorado.  Greetings from Washington DC. I am here so […]

Fight Club and Outbound Trust Migrations

Webinar on April 24, 2015 I am doing a webinar on April 24, 2015 for noncovered expatriates and how to handle the tax side of things when you give up your U.S. citizenship. Take a look at the agenda and sign up here. Greetings from Washington DC Sorry. I jumped on a plane and didn’t […]

RRSPs never reported on FBARs

I swore a mighty oath on a skyscraper of Bibles to never write about RRSPs again, so pretend that this is a post about FBARs and not RRSPs at all.  That is actually semi-accurate because the logic applied here need not only apply to RRSPs. A gentleman posted a comment on The Last RRSP Post […]

Dual-Status Tax Returns and Treaty Tax Rates

I get questions. Here is an answer for a Sunday afternoon: I’ve scoured the Internet for an answer to this question, and I can’t find it anywhere. Since you’re the go-to guru on the subject, I hope you can help. Background info: I renounced my U.S. citizenship on [Month] 31, 2014 and I have received […]

Fight Club – Statistics and Income Tax

Travel I ran into a friend tonight who subscribes to this list (hi, Jimmy) and he expressed surprise that I was in the USA. Yep. And it makes me itchy if I’m not flying somewhere frequently. I am at home nonstop through May 17 — because of family stuff, mostly my wife’s business is in […]

W. Edwards Deming knows where the problem lies

The IRS whines mightily about Americans abroad and how they are not filing FBARs or doing all of the other myriad of things that the system requires. W. Edwards Deming had a thing or two to say about situations like this. In Out of the Crisis (1982), page 315 we find this little gem: “I […]

Telling the IRS that Elvis has left the building

Webinar – April 24, 2015 – Noncovered Expatriates Just a reminder. My webinar for noncovered expatriates is coming up on April 24, 2015. Get more information and sign up here. This week’s question This week’s question is not for U.S. citizens. It is for noncitizens who are U.S. tax residents, and who terminate their resident […]

Quick balance sheet question for Form 8854

One of the eternal struggles is the effort to bring an expatriate’s net worth below the $2,000,000 mark. Success here means that the person escapes the United States without being a “covered expatriate” and thereby incurring a potentially massive tax cost for doing so. Questions come up all the time about how to do this. […]

Donald Rumsfeld, Unicorns, and Tax Homes for Digital Nomads

Greetings again, digital nomads. This week we’ll go back to basics: the foreign earned income exclusion. Form 2555.

I’m going to show you an element that is almost universally ignored by everyone. They’re probably right to ignore the problem, but it is important to know that a problem exists, and why you can safely ignore it. This week’s episode is buried, in other words, somewhere in Donald Rumsfeld’s brain. I aim to take an known-unknown and make it a known-known, so you can then ignore it with impunity.