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Discussion Forum Index --> Tax Questions --> Moving out of Country but keeping Rental Unit
Texy (talk|edits) said:
| 11 May 2006
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| I have a client that will be moving out of the country but keeping their rental property. How should I handle their 2006 return?
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ArchCPA (talk|edits) said:
| 11 May 2006
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| Is your client a US citizen/ permanent resident or a non-resident? Answer to your question will depend on that.
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Texy (talk|edits) said:
| 11 May 2006
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| They are a US citizen and would list as a non-resident.
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JRE (talk|edits) said:
| 11 May 2006
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| If they maintain their US citizenship they will continue to have a US filing requirement. As a side discussion what would they be doing for work? If they are earning wages, then it is possible to use the IRC 911 exclusion to avoid some double taxation. Beware however, that if they are self-employed, they will still be onthe hock for Self-Empoyment Tax.
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Foxttron (talk|edits) said:
| 11 May 2006
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| They are, and always be, required to file the 1040. Furthermore, if they will generate any income abroad, they need to report that income as well in the US. As a general rule, i would suggest you read the instructions for form 2555 and 1116. I would further tell you that, in my experience, doing tax return for expatriates is difficult and very expensive.
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ArchCPA (talk|edits) said:
| 11 May 2006
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| Foxttron is correct. As USC, they are taxed on world-wide income and have to file 1040. I've read instances where multi-millionares/billionaires renounce their US citizenship for tax planning purposes - but that's a topic for another thread.
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