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Joined: Jul 2010
Posts: 1,465
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Maybe we should be investing in coffee cans and mattresses....
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Joined: May 2011
Posts: 254
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Isn't this virtually everything? Seems like if it's foreign they want to know about it, if it's domestic they already do? Financial (deposit and custodial) accounts held at foreign financial institutions
Yes
Financial account held at a foreign branch of a U.S. financial institution
No
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Joined: May 2013
Posts: 15
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This new law, is in fact, an old law. US Citizens have always had to claim worldwide income. Facta is more of a way for the US to actually make sure they are getting the taxes on the worldwide income. Don't worry about it unless you have more than $50000 in the bank or in stocks etc. If you have been claiming your worldwide income, then no need to worry at all. The banks are the ones with the real issue, unless of course you are hiding your assets.
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Joined: May 2011
Posts: 254
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If you've seen the new ad campaign all over the US news, BuyBelize.com, one of the things they advertise is banking friendly, tax haven Belize. I'm assuming they are referring to offshore accounts, which up to now have been ostensibly off limits to prying eyes. Personally I don't believe for a minute that the US Gov. doesn't already have access to anything they want to know. For at least 8 years now, whenever I do a transfer into one of these accounts, it goes through a US bank. Personally I have nothing to hide, but offshore accounts were kinda "invented" for people that do.
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Joined: May 2013
Posts: 15
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After looking at BuyBelize website they are referring to buying a home in Belize. This is not subject to US taxes yet. And I do mean yet. It will happen eventually. The US is implementing ways to make sure their laws are followed, which is why FACTA is more of a problem for banks than for the average person.
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Joined: Jun 2008
Posts: 2,000
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I believe that any profit from selling a home that a US Citizen owns outside the USA are and have been subject to any taxes that would be due under the same circumstances in the USA. These are the only taxes involved in a real estate transactions on the Federal level as far as I know.
Wire transfers to Belize go through a bank in Miami and most homes would be paid for this way so they already have some records on these types of transactions. It is difficult to get away from the IRS. You have to work at it a little. When you sell usually the funds are wired into the USA, more records.
Personally by my way of thinking it is not worth the effort when you consider the risk.
Jim Formerly from somewhere on a beach in Belize
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Joined: Mar 2001
Posts: 2,733
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This new law, is in fact, an old law. US Citizens have always had to claim worldwide income. Facta is more of a way for the US to actually make sure they are getting the taxes on the worldwide income. Don't worry about it unless you have more than $50000 in the bank or in stocks etc. If you have been claiming your worldwide income, then no need to worry at all. The banks are the ones with the real issue, unless of course you are hiding your assets. Wrong information. If you have 10K or more US dollar equivalent in a foreign bank account, you must file a IRS tax form declaring that.
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Joined: May 2013
Posts: 15
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Again, the information on the website from the US government is $50000. This is for FATCA.
Under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS, generally using Form 8938, Statement of Specified Foreign Financial Assets. The Form 8938 must be attached to the taxpayer's annual tax return. Uncertain whether you have to file? Generally, aggregate value of these assets must exceed $50,000, but in some cases, the threshold may be higher.
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Joined: Jun 2008
Posts: 2,000
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Warren you are correct of course for bank accounts. A lot of accountants in the USA (Maybe I should say CPA's) file the necessary paperwork (no extension allowed) the minute they find that you have a foreign bank account, without concern for amount. I'm not sure the reasoning behind that (maybe to run up fees?) but that has been my experience with two different CPA's. Because of this I no longer worry about keeping it below $10k. At any rate if it keeps me out of the IRS's bulls eye I'm happy. An audit could cost me much more in time and money even if I believe everything is correct.
The truth is that the tax laws in the USA are just too complex and you can get tripped up real easy unknowingly. The fact that the normal person just can not file his own taxes in most cases. When I read over mine I get a headache and there is almost no way to follow it completely. I have to hope that the information I supply was all entered correctly by both myself and my CPA. This could all be done on a postcard in a sensible system. Without anything too unusual 45 pages for Federal and 20 some for the State, give me a break.
Jim Formerly from somewhere on a beach in Belize
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