Nonresidents and U.S. tax


Electing Resident Alien Status Under Section 7701(b)(4)

[Note:  I am preparing the course materials for an all-day program I am teaching for the California Society of Certified Public Accountants on the taxation of multinational families.  This is a portion of the handout I am writing.] You do not have a green card, and you were not in the U.S. enough days to […]

Step up in basis for nonresident’s assets in irrevocable trust

What “basis” is One of the continuing mysteries of life involves the concept of “basis”. Think of basis as your acquisition cost. This is essential in calculating your capital gain tax after selling an asset. Capital gain is the difference between the sale price and your acquisition cost. The higher your basis — or acquisition […]

Form 1040NR Filing, Tax Payment Deadlines

I received an email from a CPA friend of mine today. She and another person in her office disagreed on a seemingly simple question. They were preparing a Form 1040NR for a nonresident alien and wanted to get an extension of time to file the tax return. They both agreed that Form 4868 should be […]

Basis step-up on assets inherited from nonresident

Yes, I’m back from more than a week off the grid in the Quetico Provincial Park, paddling and portaging. This was a Boy Scout trip with my son’s troop, starting from the Charles L. Sommers Wilderness Canoe Base. Who knew that going canoeing involves carrying extremely heavy stuff over steep, treacherous portages in the rain? […]

Alimony Payments to Nonresidents

[I am preparing course materials for an upcoming presentation at the 2012 CalCPA Family Law Conference (01 Nov 2012 in Los Angeles, 02 Nov 2012 in San Francisco; the San Francisco event will be webcast) on the international tax aspects of divorce. This is a piece of what I am working on. It is a […]

Property you acquired before coming to the USA

This is a quick little blog post to answer a recurring question for many people out there.  It came up in the course of some work I am doing right now. Situation You are a nonresident of the United States.  Thirty years ago you bought a piece of land in your home country for US$10,000. […]

Nonresidents’ U.S. bank interest earned to be reported to IRS

The IRS came out with their Regulations which tell banks that they must report interest earned by nonresidents.  Up to now, this was not done.  If a nonresident opened a bank account in the United States, the interest earned was not reported to the U.S. government. The bank interest itself is not taxable in the […]

Mexican cross-border families and U.S. taxation

I received an email today from a CPA with an interesting situation.  I shot him a quick email to respond to a question, but the situation is interesting enough that it is worth sharing. His comment: I have a practice in (U.S. city near the US/Mexico border).  I’m seeing a prevalence of a nonresident alien […]

How to make a treaty election to be a U.S. nonresident

I received a comment on a blog post asking how to make the treaty election to be treated as a nonresident of the United States.  I answered how to make the treaty election in the comments, but it is a useful enough question that I thought it deserves a blog post of its own. Why make a treaty […]

List of international tax forms (first draft)

  Upcoming speech I am going to be giving a one-hour high speed presentation at the 2011 Tax Update and Planning Conference sponsored by the California Society of CPAs. It will be presented in Universal City, San Francisco, and on the web. My hour is intended to give practitioners a checklist approach to the various […]