March 16, 2015 - Phil Hodgen
This is the tentative program agenda. I am preparing the materials and the presentation now.
Part 1. Introduction/Overview
Part 2. The Certification Test
A. Overview – Certification Test
- The only test that matters to you (net worth and net tax liability are not a problem by definition)
B. How you become a covered expatriate
- The law, Form 8854 – what is required?
- The Code and the question on Form 8854.
- The hard questions – small errors, big errors, etc. – what are the risks?
C. How to prevent covered expatriate status
- Which years matter?
- What to look for in those years?
- What to leave alone
- What to fix
- How to fix it
- When to fix it
- No Social Security Number?
Part 4. Dual Status Tax Returns
A. Basic requirement to file
- Filing requirement for year of termination of resident/citizen status.
- What about low income people otherwise exempt from filing?
- Should you file a dual status tax return or a full-year resident status return?
B. What happens if you don’t file, or you’re late
C. Technical details
- How to allocate income to before/after expatriation date
- Paperwork for the citizen/resident portion of the year (Form 1040 as a statement)
- How to flow numbers from your Form 1040 Statement to the Form 1040NR
- Paperwork for the portion of the year after expatriation
- Tax computation for the noncitizen/nonresident portion of the year
- Treaties for the nonresident/noncitizen portion of the year
- Other stuff – personal exemptions, standard deductions, dependents, etc.
Part 5. Retirement Plans After Expatriation
A. How are the distributions taxed
- Default rules
- Treaty rules
B. Using treaties to reduce U.S. tax
- How it works
- The paperwork
C. Withholding at source
- How it works
- Form W-8BEN
- Form 1040NR
Part 6. Life After Expatriation
A. Social Security, Medicare
- How it is taxed
- Medical treatment paid for by Uncle Sam
B. U.S. real estate
- Income taxation of rent
- Estate taxation
- Capital gains tax on sale
C. Estate planning for U.S. assets
- Real estate
- Stock market investments
D. Travel to the U.S.