We delve into the complexities of tax treaties, their implications for individuals and businesses, and the importance of understanding saving clauses and various types of tax agreements.

We highlight how tax treaties can help mitigate double taxation and the necessity of professional guidance in navigating these agreements.

Understanding tax treaties is crucial for financial planning. Court cases can inform the interpretation of tax treaties. Professional help is recommended for navigating tax treaties. Tax treaties can vary significantly from one country to another.

Key Takeaways

• A tax treaty is a bilateral agreement to avoid double taxation.
• Tax treaties determine which country has the right to tax income.
• Saving clauses in treaties may not benefit taxpayers.
• Approximately 70 countries have income tax treaties with the US.
• Estate tax treaties can significantly impact taxation on assets.
• Totalization agreements prevent double social security taxation.

Chapters

• 00:00 Understanding Tax Treaties
• 03:12 The Implications of Saving Clauses
• 05:54 Types of Tax Agreements and Their Importance

Episode Links & Resources

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.
• Ep 13: Between A Rock &  A Hard Place: Mitigating Double Taxation
• U.S. Income Tax Treaties - A to Z
• U.S. Estate & Gift Tax Treaties

If you'd like to work with us on your finances or taxes, check out the process 


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Be sure to join the conversation by visiting our page:  The International Money Cafe

Or by following us on social media:-  LinkedIn; Instagram; Twitter (X); Facebook.

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The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.

Do you understand the importance of conducting a mid-year financial check-in, especially for those with cross-border financial needs?

We cover various topics, including tax strategies, estate planning, insurance assessments, and preparations for college and travel that can be reviewed over the summer. We emphasize the importance of proactive financial management during the summer months, ensuring listeners are well-prepared for the remainder of the year.


Takeaways  -  Things you can do mid-year as part of your summer financial check-up

• Engaging with tax advisors in the summer is likely to yield better results.
• Charitable giving can provide tax deductions during the summer.
• Tax loss harvesting is a strategy to reduce taxable income.
• Estate planning is crucial before traveling overseas.
• College-bound kids need financial and medical powers of attorney. 
• Insurance policies should be reviewed regularly for savings.
• Emergency funds should be assessed and adjusted as needed.
• Consult with immigration lawyers for visa holders.
• Review and adjust financial plans.    

Chapters

• 00:00 Mid-Year Financial Check-In
• 12:08 Estate Planning Essentials
• 19:45 Insurance and Risk Management
• 23:57 Preparing for College and Travel
• 25:54 Final Thoughts and Summer Financial Tips

Episode Links & Resources

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.
• Tax-Loss Harvesting: How To Boost Your Portfolio Gains.
• Ten Tips On How To Pick A Tax Preparer

If you'd like to work with us on your finances or taxes, check out the process 


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Be sure to join the conversation by visiting our page:  The International Money Cafe

Or by following us on social media:-  LinkedIn; Instagram; Twitter (X); Facebook.

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The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.

What's NIIT?

We discuss NIIT (Net Investment Income Tax), explaining its implications for individuals with investment income and also how it applies in cross-border situations. 

We cover the statutory thresholds for the tax, what constitutes net investment income, and the reporting requirements.

We also touch on some fascinating recent court cases that have impacted the application of the NIIT for expats and the potential for foreign tax credits.

Takeaways

• The Net Investment Income Tax (NIT) is a 3.8% tax on certain investment income.
• There are specific thresholds based on the filing status: $250,000 for married filing jointly, $125,000 for single, and $200,000 for others.
• What's included in NITT and what's excluded
• How NIIT is impacted by Foreign investment income
• How to cover NIIT liabilities, especially on W-2 income.

Episode Links & Resources

• Treaty-Based Foreign Tax Credits for the NIIT
• Questions And Answers On NIIT From IRS
• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process 


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Be sure to join the conversation by visiting our page:  The International Money Cafe

Or by following us on social media:-  LinkedIn; Instagram; Twitter (X); Facebook.

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The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.

Things are bad in the U.S., should I move my money overseas?

We explore this question that has come up a couple of times, due to the economic uncertainty. 

We include tariffs, market volatility, the practicalities of fund transfer, and financial goals as items to consider.

Key Takeaways

• Moving money overseas can be complicated and requires an understanding of regulations.
• Exchange rates and compliance requirements are critical factors to consider.
• Assess the underlying reasons for wanting to move money.
• Financial planning should align with personal goals and timelines, maintain open communication with your financial advisor.
• Investing in diversified portfolios can mitigate risks. 

Episode Links & Resources

• Where to Save Short-Term Money
• Ep 34: What Is English For FBAR

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process 


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Be sure to join the conversation by visiting our page:  The International Money Cafe

Or by following us on social media:-  LinkedIn; Instagram; Twitter (X); Facebook.

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The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.

How long do you keep your tax records?

A shortie that packs a punch. We discuss how long you should retain your tax and other financial records. 

We explore the statute of limitations for tax records, the importance of supporting documents, and special considerations for non-residents and property sales.  

 Some takeaways

• Keep copies of all your tax records for as long as necessary.
• The statute of limitations for tax records is three years for refunds.
• If you never filed a tax return, keep records indefinitely.
• Non-residents should hold onto property sale records until the issue is resolved.
• Employment records should be kept until a Social Security application is submitted.

And a whole lot more.  
We emphasize the importance of maintaining accurate records to ensure compliance with tax regulations and protect against potential issues with the IRS.

Episode Links & Resources

• Ep 11: Navigating U.S. Taxes
• Ep 40: Avoid These Blunders With Your Cross-Border Taxes
• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process 


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Be sure to join the conversation by visiting our page:  The International Money Cafe

Or by following us on social media:-  LinkedIn; Instagram; Twitter (X); Facebook.

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The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.

Your uncle just sent you a ton of money from overseas - what are the tax implications?

We discuss the complexities of gift taxes, particularly for individuals receiving gifts from overseas.

We explore the annual gift tax exclusion, reporting requirements for large gifts, and the implications of receiving money from non-U.S. persons.

The conversation also touches on exemptions to reporting requirements and the potential issues surrounding covered expatriates. 

We emphasize the importance of transparency and consulting with experts to navigate these financial matters effectively.

Some Key Takeaways

• Gifts over $100,000 must be reported on Form 3520.
• Receiving money from non-U.S. persons (outside the US) generally has no tax implications.
• The reporting threshold for gifts from foreign entities is around $17,000.
• IRS penalties for non-filing can be significant, up to 25%.
• Late filing of Form 3520 may allow for a reasonable cause statement.
• Exceptions exist for qualified tuition and medical payments.
• Consulting with financial experts is crucial when receiving large gifts.
• Understanding covered expatriate status is important for tax implications.

Episode Links & Resources

• Ep 08: What Is English For "Domicile?"
• Ep 18: What Is English For "Situs?"
• Ep 22: What Is English For "Covered Expatriate?"
• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process 


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Be sure to join the conversation by visiting our page:  The International Money Cafe

Or by following us on social media:-  LinkedIn; Instagram; Twitter (X); Facebook.

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The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.

IRS expects you to report your overseas or foreign assets when you file taxes if you are a US tax resident (US citizen, Green card holder, or you meet the substantial presence test).

Many people are unaware of the requirements, and the IRS seems to acknowledge this.

IRS has come up with an amnesty program, which allows you to catch up and be tax compliant if you haven't reported your overseas assets.

In this episode, we discuss the process, known as "Streamlined Filing," and explore the penalties involved, if any, as well as the proper steps to follow.


Episode Links & Resources

• Ep 13: Mitigating Double Taxation
• Ep 04: Substantial Presence Test (SPT)
• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process 


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Be sure to join the conversation by visiting our page: The International Money Cafe.

Or by following us on social media: -  LinkedIn; Instagram; Twitter (X); Facebook

The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.

In this heartfelt episode,  we celebrate Mother's Day by reflecting on the lessons learned from our mothers, particularly in the context of financial education and cultural influences.

We discuss the unique challenges faced by immigrant mothers in raising children in a new country, the importance of open conversations about money, and the role of mentorship in empowering the next generation. 

The conversation emphasizes the universal values of motherhood and the significance of sharing knowledge across generations.

Some key takeaways

• Lessons from our mothers often include important financial wisdom.
• Cultural influences can change the way we approach motherhood.
• Navigating parenting as immigrants presents unique challenges.
• Open conversations about money are crucial for financial literacy.
• Adapting financial lessons for the next generation is essential.

Tune in to find out who is saving for their daughter's wedding, just like their mother did.


Episode Links & Resources

• My Mom Is Not Afraid To Talk About Money
• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process 


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Be sure to join the conversation by visiting our page:  The International Money Cafe

Or by following us on social media:-  LinkedIn; Instagram; Twitter (X); Facebook.

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The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.

How do you find a good financial planner?

We share personal experiences and insights on the importance of cultural sensitivity, qualifications, fee structures, and effective communication in financial advising.

These are the things you want your financial planner to have in addition to cross-border technical knowledge.

We emphasize the importance of advisors understanding their clients' unique backgrounds and financial goals, as well as the fiduciary responsibilities they hold.

This will help you find the best financial advisor for your specific situation.

Key Takeaways on finding the right advisor for your cross-border needs

• Look for cultural sensitivity
• Look for advisors with CFP certification for quality assurance.
• Understand the fee structure.
• Ensure their communication will help you understand complex financial concepts.
• Ensure they are a fiduciary - put your interests first.
• Agree on how you define financial success and much more.

Episode Links & Resources

• Ep 37: How To Find The Right Tax Pro For Your Cross-border Needs
• Ep 31" Five Important Financial Planning Questions For Foreign-Born Families
• A Prospect's First Visit - Nightmare Os The Start Of Something Beautiful
• Kitces: Navigating Challenges Investing For Nonimmigrant Visa Holders
• Understanding The Role Of a Financial Advisor
• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process 


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Be sure to join the conversation by visiting our page:  The International Money Cafe

Or by following us on social media:- LinkedIn; Instagram; Twitter (X); Facebook


The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.

There is a huge difference between the gift and estate tax. This is highly magnified based on your immigration status (U.S. residents and non-resident aliens (NRAs)).

We also explain the annual exclusion for gifts, the unified tax credit, and the importance of tax planning to navigate these complex tax laws.

The conversation highlights the need for careful planning to avoid significant tax liabilities, especially for non-resident aliens with U.S. assets. 

Some Key Takeaways

• A gift tax is applicable during the lifetime of the giver.
• The estate tax is assessed after a person's death.
• The annual exclusion allows gifting up to $19,000 without tax in 2025.
• Non-resident aliens have a much lower exemption of $60,000, while U.S. tax residents have $13.99 million - set to sunset in 2025.
• Planning is crucial to manage tax liabilities effectively.
• Understanding domicile is key for tax implications.

Future episodes will delve deeper into the tax and financial planning strategies that will help with the above.


Episode Links & Resources

• Ep 08: What Is English For "Domicile?"
• Ep 18: What Is English For "Situs?"
• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

• If you'd like to work with us on your finances or taxes, check out the process 

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The speakers' views and opinions discussed in this episode should not be considered financial, tax, or legal advice. Consult your advisor for any legal, cross-border tax, and financial advice.

Be sure to join the conversation by visiting our page: The International Money Cafe

Or by following us on social media:- LinkedIn; Instagram; Twitter (X); Facebook