UK tax hikes affecting expat property owners: is it too late to act?

Americans living abroad, in countries like Great Brittan, are being affected by tax hikes. Although there are some ways that you can dance around these increases in other countries, it is not always that easy. These increases affect not only those with luxury properties, but more average investors, as well.

UK tax hikes affecting expat property owners: is it too late to act?

Does The Constitution Protect Non-Citizens? Judges Say Yes

Trump supports are surprised at the extent to which the constitution protects undocumented individuals once inside our country. A history of court cases show that individuals have the right to be protected by the constitution regardless of their documentation status. With the supreme court split 4-4 the future of these decisions is uncertain.

Does The Constitution Protect Non-Citizens? Judges Say Yes

Six Ways I Built A Career Traveling The World In My 20s

A lot of young people have a dream to travel the world. This is one person’s take on that. They did it and actually used it to get a career going. They were in their twenties. It’s pretty impressive to see someone of that age manage that successfully.

Key Takeaways:

  • Having worked in the consulting division of a huge multinational company, I know what it feels like to be plugging away in a cubicle in New York or Chicago.
  • Thanks to those years of global experience, it’s actually hard for me to get anything but an international job now.
  • Go abroad early in your career. Take any opportunity you can—take a salary cut if you have to, volunteer, do anything that “globalizes” your resume.

“Go abroad early in your career.”

https://www.fastcompany.com/3067658/lessons-learned/six-ways-i-built-a-career-traveling-the-world-in-my-20s?partner=rss

9 Daily Habits of People Who Are Relentlessly Confident

You are going to die, and when you die no one is going to remember that you didn’t answer the question right, no one is going to remember that you said something awkward after class. Remind yourself that you’re going to die, so you don’t take the small things so seriously.

Key Takeaways:

  • You are going to die, and when you die no one is going to remember that you didn’t answer the question right, no one is going to remember that you said something awkward after class.
  • It makes you get good at talking with confidence, and the teacher will make you do things that get you WAY out of your comfort zone.
  • When you’re talking to an old friend, you could be playing the nostalgia game. When you’re talking with a girl at the bar, you’re playing the flirting game.

“It makes you get good at talking with confidence, and the teacher will make you do things that get you WAY out of your comfort zone.”

http://www.inc.com/quora/9-daily-habits-of-people-who-are-relentlessly-confident.html

Do I Need to Pay Tax in the US on my foreign earnings or assets?

US tax residents (citizens, permanent residents, and substantial presence test aliens) are required to pay income tax on their worldwide income and non residents are only required to pay tax on their US sourced income.

First, do you have to file tax returns?

Both US tax residents with worldwide income and non residents with US sourced income need to file US tax returns. A non-resident will have US sourced income if they they are engaged or considered to be involved in a trade or business in the US within any given year.

Determining your tax residency

Non-citizens are called residents if they are permanent residents (i.e. they hold a green card) or if they pass the substantial presence test. They are referred to in the Internal Revenue Code as resident aliens. A non-citizen will pass the substantial presence test if they spend at least 31 days during the current year within the US and if, when you apply the 3 year aggregation formula set out within the Internal Revenue Code to their circumstances, they are deemed to have spent more than 183 days in the US (current year x 1 + year prior to current year x 1/3 (Year 2) + year prior to Year 2 x 1/6). If you do not hold a green card or do not pass the substantial presence test you are considered a non-resident alien.

Tax treatment of citizens and resident aliens

Resident aliens use the same filing statuses as citizens and are able to claim the same deductions and tax credits as citizens. Resident aliens must report all forms of income received including wages, investment returns, and income received from foreign governments including pensions. There are exceptions to the residence test that provides many of the legal aliens with exemptions from reporting global income.

Exemptions for resident aliens

  • Those who commute from Canada or Mexico regularly do not count commuting days as residence days for the substantial residence test.
  • Those who are able to prove that they had a tax home in another country during the years they are not present in the US for 183 days. This tax home is then considered the principle place of business or the primary residence of the individual.
  • Exempt persons include those who are in the US temporarily including teachers, students, trainees, professional athletes, and employees of non-US governments.
  • Tax treaty exemptions apply to those who are from certain countries which may have favorable tax treaties with the US.

Tax treatment of non-resident aliens

Non-resident aliens who have US earnings are only required to pay income tax on the income that is generated from a US-based source. Any foreign income does not have to be reported on a US tax return and is not considered tax-eligible by the IRS. For example, if an Australian business person owns and operates a business in Australia and owns a business located in the US, only the income generated by the US-based business is considered taxable. Also, if that person realizes investment income in the US that is not from a US source, the income from that investment is taxable at a flat rate of 30%, unless otherwise specified by a tax treaty. It is important for non-residents to keep strict records of their global income as they should report it to the IRS as evidence of their compliance with the regulations.

Will I have to pay tax twice on my income from another country?

Good news, if you are paying tax on foreign-based income you may be eligible for foreign tax credits that reduce your burden in the US. Individuals can claim a tax credit for taxes levied by another government on foreign income. Any foreign taxation needs to be reported on schedule A of personal tax return form 1040. In most cases this reduces the amount of taxable foreign income for individuals with global income. There are four criteria for foreign tax to be a deduction on your US tax returns. First, the tax must be imposed on you. You must also have paid the tax. The tax must be a real, legal foreign tax liability and it must be an income tax.

The IRS also operates with a foreign earned income exclusion which is available to those who meet certain criteria. While citizens and resident aliens who live abroad must still report their global income, they may be eligible to exclude all or part of their foreign earnings from US federal taxation.

It is very important to comply with US tax requirements and file your personal returns as necessary. While these laws may seem punitive to those who operate in international markets, they are the rules imposed by the US government and there are penalties and fines on those who do not comply. International tax law is complicated. If you have multiple international income streams, it is critical to get advice from an expert who has intimate knowledge of international tax regulations to help you to make the most of any tax credits and deductions available to you in order to minimize your overall tax burden.

CST Tax Advisors has specialized in helping individuals with international interests to navigate these complicated regulations and requirements for 25 years. The accountants and tax professionals here serve clients from offices spanning the globe and provide intelligent advice to help you protect your wealth.

Six Success Tips For International Networking Week

On February 23, 1905, lawyer Paul J. Harris got a handful of friends together and founded Rotary, the world’s first civic club. Initially, his goal was just to grow his practice. But Harris soon realized this could be big because Rotary clubs caught on and, you might say, went viral. Now after over a century of international success, 33,000 Rotary clubs around the globe meet every week to network. And millions of people worldwide have benefited as Rotarians have delivered on Harris’s founding principle, “Service above self.”

Key Takeaways:

  • Three-quarters of a century later, Dr. Ivan Misner also had a rather parochial idea that caught on around the world. What began simply as a plan to meet other professionals in order to grow his consulting business, rather quickly became Business Network International.
  • Networking is the professional version of the naturally gregarious nature of humans – we just like doing it;
  • Done right, the headwaters of networking is a commitment to what’s best for the person on the other side of the handshake. And after a century of organized practicing, we know the awesome power of putting others first.

“Done right, the headwaters of networking is a commitment to what’s best for the person on the other side of the handshake. And after a century of organized practicing, we know the awesome power of putting others first.”

http://www.forbes.com/sites/jimblasingame/2017/02/03/six-success-tips-for-international-networking-week-plus-a-bonus/

Download our eBook “Moving To The US”

Disclaimer:
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication.

A 30-something who spent 11 years traveling to 193 countries shares his favorite money trick

Just before he turned 35, Chris Guillebeau visited his 193rd country, completing his quest to visit every nation around the world. But Guillebeau, now 39, wasn’t able to afford it because of a particularly high-paying job, or a windfall of family money, but rather through earnings from freelance gigs and entrepreneurial endeavors he’d managed from 2002 to 2013.

Key Takeaways:

  • The rule, Guillebeau explained, was a way for him to decide if purchases were worth the extra cost, whether they were transportation, food, or accommodations
  • Just before he turned 35, Chris Guillebeau visited his 193rd country, completing his quest to visit every nation around the world.
  • “My whole life has been kind of a series of side hustles,” Guillebeau, a New York Times bestselling author, told Business Insider, adding that he worked while on the road and took advantage of credit card points and airline miles in order to finance his travels over the 11-year period.

“While he accomplished his goal to visit every country in the world a few years ago, Guillebeau hasn’t slowed down. He still travels about 10 to 14 days out of every month, often on speaking tours related to his books and blog, The Art of Non-Conformity.”

http://www.businessinsider.com/how-to-decide-if-something-is-worth-the-extra-cost-while-traveling-2017-1

Download our eBook “Moving To The US”

Disclaimer:
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication.

The Next Step in Finance: Exponential Banking

The financial industry—especially banking—has characteristics that make it a candidate for rapid and early digitalization, mainly because its fundamental raw materials and products boil down to two: data (or information) and money. And money can be turned into accounting figures, that is, data or information. Still, banking has not suffered anywhere near the level of disruption experienced by other sectors.

Key Takeaways:

  • A new generation of clients has grown up in a digital marketplace, and it demands different services and new ways of accessing them.
  • On the other hand, user convenience calls for much more global and integrated solutions to meet their needs, and this will likely be achieved through platforms combining products and services from different providers.
  • Consequently, it will receive a part of the income generated by those transactions and will have access to, and control of, the information generated around it, which is itself another enormous source of value.

“Because, in the final analysis, what matters is earning and keeping our customers’ trust, as that is what will determine who succeeds in the financial industry of the future.”

https://www.technologyreview.com/s/603574/the-next-step-in-finance-exponential-banking/

Download our eBook “Moving To The US”

Disclaimer:
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication.

4 Mind-Refreshing Tricks That Beat Decision Fatigue

There are 4 mind refreshing tricks that beat decision fatigue for people. One way is to not ask the same questions every single day. That is something that would become very negative and stale after awhile. Above all, you should follow your gut and do what feels best for you. If faced with a dilemma, ask your inner self to provide the answer.

Key Takeaways:

  • Decision fatigue refers to the phenomenon that, like willpower, our ability to make decisions throughout the day diminishes without proper recharging.
  • Revisit the decision at specific intervals of your choosing, instead of reiterating the question, on a daily monkey-mind basis.
  • When mid-Pivot and asking life’s biggest questions, we are often overwhelmed by smaller decisions and things that might not have registered on our radar in the past.

“We do know the answer to more than we think – on decisions large and small if you find yourself caught within unproductive inner dialogue, try to ask yourself, “What does my gut say?””

http://www.inc.com/quora/4-mind-refreshing-tricks-that-beat-decision-fatigue.html

Download our eBook “Moving To The US”

Disclaimer:
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication.

Why Should I Accept Your LinkedIn Connection?

Everyone who is in business needs a LinkedIn profile. Every company looks at it. You want to make sure that you are noticed by the people looking for services like yours. It’s hard to understand how anyone in the business world would not have a profile on there. A profile should look a lot like a resume.

Key Takeaways:

  • If I knew you, that would be one thing. I get invitations from lots of people that I work with or have personally met or emailed so that’s usually a no-brainer.
  • If I don’t know who you are and you’re from specific parts of Africa, Eastern Europe, South America, the Middle East or Florida, I’m likely going to reject you.
  • I don’t know how all this stuff works, but if your profile looks suspicious I’m afraid that by accepting your invitation you’ll do something bad to my account or to those that I’m connected.

“To me, a legit LinkedIn profile from someone who lives in a far off or dangerous place (like New Jersey) that is completely filled out with jobs and schools and has connections with more than 500 people, including a few in my network and follows a few smart thought leaders that I admire, like Richard Branson.”

https://www.entrepreneur.com/article/288524

Download our eBook “Moving To The US”

Disclaimer:
This document is intended as an information source only. The comments and references to legislation and other sources in this publication do not constitute legal advice and should not be relied upon as such. You should seek advice from a professional adviser regarding the application of any of the comments in this document to your fact scenario. Information in this publication does not take into account any person’s personal objectives, needs or financial situations. Accordingly, you should consider the appropriateness of any information, having regard to your own objectives, financial situation and needs and seek professional advice before acting on it. CST Tax Advisors exclude all liability (including liability for negligence) in relation to your reliance in this publication.