Posted by If the overseas assets of US citizens and green card holders exceed US$5, they need to declare to the IRS. Otherwise, they will face a fine of up to US$1; if they fail to pay after the IRS notice, the fine will be increased. Up to $5 USD.
In fact, U.S. taxation is not terrible, because the overseas assets that the U.S. requires to declare are not total assets, but specific financial assets, such as direct investment income, indirect investment income, business income, property capital gains, etc.Your real estate is not included in the declaration. Therefore, Chinese green card holders do not have to worry about paying taxes to the United States on domestic real estate.
Although taxation in the United States is quite high, there is a basic rule for global taxation, that is:All property before obtaining U.S. permanent resident status (green card) has nothing to do with this countryTherefore, this part of the property is not taxable, and the income after obtaining permanent resident status (green card) needs to be taxed.
Then,When will the obligation to pay taxes in the United States begin?
Green card applicants must enter the U.S. within 180 days after obtaining the U.S. immigrant visa.From the day of landing in the United States, new immigrants began to fulfill their obligation to declare their property to the U.S. government.And all overseas non-value-added assets before becoming a permanent resident of the United States do not need to pay taxes to the U.S. government.Only the value-added income realized after landing needs to be declared to the US government and taxed in accordance with the law.Therefore, new immigrants should keep the various source certificates for acquiring assets. In order to avoid mischarging or fines, they should try to ensure the accuracy of the source of assets.
For example, the applicant had 100 million US dollars in assets in China before immigrating. After immigrating, he did not make any money in China, and the original assets did not generate any income. Therefore, he does not need to pay taxes on the original Chinese assets after immigrating.This rule is the key to tax planning.At the same time, asset declaration and tax payment are closely linked, which will involve two issues: XNUMX) whether to declare all overseas assets truthfully when applying for immigration; XNUMX) whether to declare all assets after immigration.
In the United States, property declaration is relatively transparent, but taxation is relatively fair.There is also an allowance for net income from long-term overseas work or business, which is called "overseas income tax credit."
Original: Jin Accounting Firm
Editing and finishing: Plan A U.S. Life Insurance
