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81 votes
Accepted

Borrowing money in one country to pay off debt in another

Logistics of borrowing in a different country aside, financially if the reason the interest rates are higher is because inflation is expected to be higher, you might be trading smaller interest ...
D Stanley's user avatar
  • 136k
30 votes

Borrowing money in one country to pay off debt in another

I'm currently living in Germany and can borrow a substantial amount of money at almost no interest, effective 3.4%. Do you know what you are allowed to use that money for? A mortgage for a home in ...
mastov's user avatar
  • 603
29 votes
Accepted

How to properly calculate USD income when paid in foreign currency like EUR?

You convert the income into USD based on the Treasury's rate for the date on which you received the income (See the IRC Sec 989(b)(1)). The Treasury's rate is accepted unconditionally, if you use ...
littleadv's user avatar
  • 176k
23 votes

Borrowing money in one country to pay off debt in another

The big risk is that there is a major shift in exchange rates. As pointed out in D Stanly's answer exchange rates can shift in the long term due to differing inflation rates in the two countries but ...
Peter Green's user avatar
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11 votes

Money saved from the Philippines

The short answer is that there is no US tax due if all you are doing is moving assets held abroad to the US. Whether you are a "returning" US citizen (or will continue your residence in the ...
Dilip Sarwate's user avatar
9 votes

Borrowing money in one country to pay off debt in another

I'm currently living in Germany and can borrow a substantial amount of money at almost no interest, effective 3.4%. Generally a Bank in Germany not give you a mortgage for property outside of the ...
Dheer's user avatar
  • 57.1k
7 votes

sold property in the Philippines and asked money to be sent here in US

Where they send their money isn't what makes the sale taxable, it is the sale itself which would be taxable or not. If your parents were residents in the US when the house was sold, it would likely ...
Grade 'Eh' Bacon's user avatar
5 votes
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Should I avoid month-end for my foreign salary payments?

I got historical data for GBP/ZAR here, going back to 2000 (you need to register to download it). I then divided the closing price on each day by the average closing price for the whole month. I don'...
GS - Apologise to Monica's user avatar
5 votes

How did the IRS know that Boris Johnson sold his house?

I would guess that a large deposit appeared in his bank account and that information was shared with the IRS. Such sharing of information deemed relevant is now automatic. As for who is ...
Spehro Pefhany's user avatar
5 votes
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Am I exempt from taxes if I worked overseas, however generated income from US-based customers?

US Citizens need to file taxes on all worldwide income, regardless of their residence. They may be able to obtain reduction on their net US taxes actually owed through effectively one of two methods: ...
Grade 'Eh' Bacon's user avatar
5 votes
Accepted

Taxes for selling property in foreign country

Yes, you'll have to report this on your US tax return and pay capital gains taxes as applicable. Note the step-up basis rules on inheritance that may increase your basis and reduce the taxable gain. ...
littleadv's user avatar
  • 176k
4 votes
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How do I avoid double taxation of dividends and capital gains?

If you read a bit further down, you'd see the explanation, as well as one alternative. FEIE can only reduce your taxes by the amount of your foreign earned income, up to a cap (a bit over $100k). So ...
Joe's user avatar
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4 votes
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Non Resident Alien Spouse Treated As Resident - Self Employment Income

First, the SSN isn't an issue. She will need to apply for an ITIN together with tax filing, in order to file taxes as Married Filing Jointly anyway. I think you (or both of you in the joint case) ...
user102008's user avatar
  • 17.2k
4 votes

Germany Tax Question - Non-Resident and not employed in Germany

No you won't. Germany taxes income, not bank accounts. Note that this changes immediately when your bank account makes interest - you will owe taxes on this interest. However, chances are you won't ...
Aganju's user avatar
  • 37.7k
4 votes
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Taxation of US prize money for UK citizen

In the end, I filled out the form with a foreign TIN (my UK National Insurance Number) on line 6, as well as a short sentence detailing my claim for 0% tax withholding according to the relevant ...
Will Vousden's user avatar
4 votes
Accepted

Filing world-income for taxation in UK as a non-citizen

I have not had any contact with UK tax authorities so far, and I’m not even sure if they are aware of my existence or residence. If you're employed as a postdoc with a university, the university HR ...
FrankD's user avatar
  • 156
4 votes
Accepted

Can I qualify for the foreign earned income exclusion if I am employed by a US based company?

There is no problem that your employer is a USA company. There is a significant potential problem in the need to establish bona fide residence in a foreign country for a full tax year. Your serial ...
Andrew Lazarus's user avatar
4 votes

Getting money transferred from abroad from my parents, would I get taxed?

That's correct. There's no automatic way money transfers are taxed, so you won't have to explain yourself to anyone. And no tax is actually due because there's no gift tax in the UK. As you say there ...
GS - Apologise to Monica's user avatar
4 votes
Accepted

As a U.S. citizen, how does income tax work for income from non U.S. companies?

You probably won’t be getting any tax forms from them, but it doesn’t matter. Your business needs to declare all of its revenue, whether you get a 1099 or not. Add in whatever they paid you in 2020 to ...
Ben Miller's user avatar
  • 116k
4 votes

Independent contractor taxes with J1 visa

Should I pay taxes for the April-June compensation in the US? Of course. This is US-sourced income that is not related to your J-1 job. It doesn't matter where the employer is, what matters is where ...
littleadv's user avatar
  • 176k
3 votes
Accepted

How do I file taxes if my foreign income can be excluded by the foreign earned income exclusion act? Or do i even need to file at all?

You will need to file your tax return (form 1040) with the form 2555/2555-EZ attached to it. Usually, retail tax preparation services, especially on-line websites, are not tailored for such a unique ...
littleadv's user avatar
  • 176k
3 votes

Where do I pay tax - UK or Malta?

You usually have to pay tax on your UK income even if you’re not a UK resident and wages are included on which you have to pay tax. Malta has a double taxation agreement with UK so you don't have to ...
DumbCoder's user avatar
  • 10.6k
3 votes
Accepted

L1-B visa, received W-8BEN from bank

Same situation here - I'm from Brazil, moved to the U.S. under an L1-B visa, and I've had this issue many, many times. My tax consultants (PwC) explained to me very clearly that, because of the "...
Bruno Reis's user avatar
3 votes
Accepted

Is it possible to claim the Bona Fide Residence test for part of the year?

You're at the wrong page to check for eligibility to claim the Foreign Earned Income Exclusion. The full eligibility test says that if you do not meet the Bona Fide Resident test, you can claim the ...
Guest5's user avatar
  • 1,324
3 votes

How did the IRS know that Boris Johnson sold his house?

The linked article mentions that Boris Johnson has renounced his American citizenship. This is the usual way of saying, "Boris Johnson has persuaded the US Government to stop considering him to be a ...
DJohnM's user avatar
  • 4,294
3 votes
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Do I need a Social Security Number?

You are generally only eligible to apply for a Social Security Number if you currently have a status that authorizes you to work in the US. You don't have such a status, so you cannot apply for a ...
user102008's user avatar
  • 17.2k
3 votes
Accepted

Am I required to pay taxes on my U.S. freelancing income in France?

First of all, you need to determine whether you will be a tax resident of France. You are considered to be a tax resident if most of your income comes from France. You are also a tax resident if a ...
Five Bagger's user avatar
  • 9,785
3 votes
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Foreign inheritance subject to U.S. taxes for permanent resident?

US Federal Income Tax is not imposed on inheritances, and I suspect (though am not fully sure) that most States don't impose State Income Tax on inheritances (California and Taxachussetts might be ...
Dilip Sarwate's user avatar
3 votes
Accepted

Online Hackathon prize money taxation and exceptions

If someone facing the same issue, here is the tip. Fill out Part I, Part II (9) and part III Leave the Part II (10) blank and submit. You'll get your full amount. Hope this helps!
Div's user avatar
  • 171
3 votes

Social Security and other liabilities for foreign employers of US citizens working remotely

Say you are in "Denver" and they are in "France". They pay you completely, utterly normally "As if you are a French person". You then square everything with the IRS at ...
Fattie's user avatar
  • 13.8k

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