Foreign Individuals

Form 8804 Will Apply Tax Rates in Effect in 2012 to Fiscal Year Partnerships in 2013 (Ann. 2013-30)

Form 8804 Will Apply Tax Rates in Effect in 2012 to Fiscal Year Partnerships in 2013 (Ann. 2013-30)

Posted on 04/25/2013 by CCH

Change in Georgia Withholding Requirement for Partnerships with Nonresident Partners

Wade Wilson, CPA

On May 1, 2012 Governer Deal signed into law, House Bill 965 changing the withholding requirements on nonresidents effective for tax years beginning on or after January 1, 2012.  Previously, Georgia allowed withholding on distributions paid or credited to partners who are nonresidents of Georgia (including nonresident alien partners).  The law has been modified so that withholding is now determined based on the partner's share on taxable income sourced to the state.  The withholding tax rate is still 4 percent.

U.S. Income Tax Concerns for Nonresident Aliens Directly Owning and Renting U.S. Real Estate

Ashley Erwin, CPA

With interest rates and U.S. property values at all time lows, it is a great time to invest in U.S. real estate.  For individuals who are foreign to the United States (nonresident aliens for U.S. tax purposes), purchasing and renting U.S. residential and commercial real estate can be simpler than one might expect.   A nonresident alien should consider the following issues before, during and after purchasing rental real estate directly in the United States.

Question & Answer: Investing in U.S. Real Estate as a non-U.S. Resident

Ashley Erwin, CPA

Wilson LLP recently had an individual contact us regarding her father’s interest in purchasing a home in the United States for purposes of generating some rental income as well as capital appreciation. The following questions and answers are helpful to those interested in investing in U.S. real estate.

Disposition of a Closed-End U.S. Real Estate Fund Investment

Julie Armstrong, CPA

In the third and final part of this series, we discuss the ramifications of disposing of an investment in a U.S. real estate fund.  Part 1, Investing in a Closed-End Real Estate Fund, discussed the initial investment in U.S. real estate, while Part 2, Annual Income Tax Return Requirements for Nonresident Aliens Invested in U.S. Closed-End Real Estate Funds discusses the annual filing requirements associated with your investment.  While the same general principals apply to any disposition of any U.S. real estate, we will focus on the disposition of investment held via a partnership interest. 

Annual Income Tax Return Requirements for Nonresident Aliens Invested in U.S. Closed-End Real Estate Funds

Ashley Erwin, CPA

In the second part of this series, we discuss the U.S. tax filing requirements of a nonresident alien investor, and the various steps an investor needs to take in order to have a complete tax return. We also discuss the process of authorizing a CPA firm to handle an investor's tax return, and an overview of the various other forms associated with the U.S. Nonresident Alien Income Tax Return.

Investing in a Closed-End U.S. Real Estate Fund

Mary Ann Rosenberg, CPA

With strong performance in 2011, closed-end real estate funds still offer an attractive way for the foreign investor to invest in U.S. real estate.  Foreign investors considering investing in a closed-end fund have a complex set of rules to learn and several steps to follow to ensure they are properly complying with U.S. tax law.   In this article , the first of a three-part series, we hope to provide a helpful guideline for the foreign investor, with a general overview of what a closed-end fund is, a summary of  U.S. tax law, and a list of the steps that the investor needs to take to comply with U.S. tax law.

Estate Return Rules for Individuals Who Died in 2010 – New Form 8939 and the affect on U.S. and Foreign Individuals

Wade Wilson, CPA

To file or not to file?  Executors of 2010 estates have some decisions to make.  For individuals who died in 2010, the 2010 Tax Relief Act reinstated the U.S. estate tax.  Therefore, 2010 estates are subject to tax the same way estates of individuals who died prior to 2010 were taxed.  An election to opt out of the estate tax is available, but you must act before January 17, 2012.  Executors must carefully consider the tax consequences of each choice before making a decision.

Sailing Permit: What Aliens Need to Know about their Departure from the United States

Picture of a paper boatAshley Erwin, CPA

As you prepare to go back to your home country, your current year income tax return may cross your mind, but probably is not perceived as a priority for getting out of town. If returning permanently, you may be thinking that, at year-end or the beginning of the next year, you'll inform your CPA that you're no longer in the U.S. and you can move forward with your last U.S. income tax return.