freebird5825
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Hi this is Mr. B - the other half of Freebird5825. I need some advice/input on the taxation of a US expatriate. I am a tax accountant (and consider myself to be a pretty good one) and before I delve into the IRS Code I thought perhaps someone here might be able to lend some guidance/experience.
One of my clients has a sister living in the UK and she has been there for a number of years. Has not had any US Source Income for a number of years so has not filed any US Tax Returns. She has UK income and of course pays the UK taxes on that income.
Here is where it gets tricky. She is a beneficiary of a Trust that was terminated in 2011 upon the death of the trustor. She received a check in 2011 for her share of the trust proceeds. I will be issuing a US Schedule K-1 to each of the beneficiaries (including her) so they can report their share of the income tax due on the income producing portion of the trust for 2011.
I a pretty sure that she will have to file a US Income Tax return for 2011 to report the income tax due on her US Source Income but her being an expatriate I am wondering if she needs to do so or not.
I have done some preliminary research on the IRS site concerning taxation on expatriates but the rules in this area are quite complex. A lot depends on "when" you became an expatriate (ie what year) and how long you have been an expatriate. Different rules apply depending on when you met these requirements.
I am hoping there are some US expatriates on here that can provide some insight and guidance that may be perhaps are in a similar situation or have been. Thanks so much. Mr. B
One of my clients has a sister living in the UK and she has been there for a number of years. Has not had any US Source Income for a number of years so has not filed any US Tax Returns. She has UK income and of course pays the UK taxes on that income.
Here is where it gets tricky. She is a beneficiary of a Trust that was terminated in 2011 upon the death of the trustor. She received a check in 2011 for her share of the trust proceeds. I will be issuing a US Schedule K-1 to each of the beneficiaries (including her) so they can report their share of the income tax due on the income producing portion of the trust for 2011.
I a pretty sure that she will have to file a US Income Tax return for 2011 to report the income tax due on her US Source Income but her being an expatriate I am wondering if she needs to do so or not.
I have done some preliminary research on the IRS site concerning taxation on expatriates but the rules in this area are quite complex. A lot depends on "when" you became an expatriate (ie what year) and how long you have been an expatriate. Different rules apply depending on when you met these requirements.
I am hoping there are some US expatriates on here that can provide some insight and guidance that may be perhaps are in a similar situation or have been. Thanks so much. Mr. B