the financial impact leaving the us will have on your family back home

The Financial Impact Leaving The US Will Have On Your Family Back Home

Source: www.expatfocus.com

Globalization trend

“The number of US citizens choosing to pursue their education and careers overseas or even get married and retire in foreign countries is growing every year.”

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http://www.expatfocus.com/



Relocate with family

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“Each year, thousands of US citizens realize their expatriate dream by moving to other countries. A majority of them relocate on their own, but there is a small percentage that takes their family and dependants along.”

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Financial impact on your family “Did you know that leaving the US can actually have a significant negative financial impact on your family if they do not travel with you?“

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Being an American expat

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“If you believe that you aren’t obligated to pay taxes in the US just because you are earning in a different country and are paying local taxes there, you couldn’t be more mistaken. What’s more, you may also be liable to pay an expat tax in the US.”




Code 2801 “If your family receives any kind of money or other items of commercial value from you, or any other covered expat, they are required to declare it and pay the tax that is due to the government. “

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Gifts & Bequests Considered Covered Transfers

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“Code 2801 has imposed a tax on American residents and citizens who are in receipt of a “covered gift” or a “covered bequest” from any “covered expat”. The current rate in 2016 is 40%.”




Tax exceptions

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“Do bear in mind that there are notable exceptions for the transfers that have been properly reported by the covered expat on gift or estate tax returns that have been filed in time. For example, a gift of property in the US that is reported on the gift tax return will be regarded as an exception.”

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The Foreign Account Tax Compliance Act (FATCA)

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expats believe that in FATCA, introduced in 2012, was designed to target overseas bank accounts held by well-to-do Americans.”




Banks would rather refuse a customer than risk with fine

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“FATCA holds local banks responsible for identifying US Citizens among their customers and reporting them to the US Taxation Authorities. Any error on a bank’s part could result in penalties as high as 30% of the bank’s entire dealing with the US.”

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ThankYou

the financial impact leaving the us will have on your family back home

Economy & Finance