opinion on the u.s. taxing on d.r properties on u.s citizen and residents

manny20

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from what i read the u.s is going to have acces to bank accounts,properties,incomes because of a new agrement they signed.....correct me if im wrong
 

AlterEgo

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Yes, it's been discussed several times.

My understanding is that DR will report to the US any bank accounts that have a balance over $10,000. I'm not sure what happens with real estate sales, but we'll find out soon because we're selling a property next month.
 

waytogo

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Apr 3, 2009
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Yes, it's been discussed several times.

My understanding is that DR will report to the US any bank accounts that have a balance over $10,000. I'm not sure what happens with real estate sales, but we'll find out soon because we're selling a property next month.

Are you sure it's monetary............
I was under the impression that all foreigners accounts, regardless of the monetary amount were going to be reported.....
 

No Place Like Home

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I spoke to my rep at Popular and she tells me they do not and will not do any reporting to the US. Take it with a pinch of salt.
 

zoomzx11

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As I recall Charlie simply forgot to list profits he made on his DR properties when he did his US income taxes. Hey, everyone forgets once in a while.
 

smitty777

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We all knew this was coming for a long time. It has something to do with catching tax evaders. They claim the missing revenue is one of the reasons we have a big national debt. Its stupid if you ask me because you're being double taxed. Meanwhile corporations continue to hide their money over seas with no penalties. I bet half of those law makers have bank accounts in turks and Caicos.For those of you that think putting your property in your wife's name will save you; it won't make a difference. The tax man can tax you on that too. There's an article on the net explaining it. Google it.
 

AlterEgo

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In irs.gov one can read about FBAR and FATCA (Foreign Account Tax Compliance Act) and IRS Form 8938. The Embassy of the United States Dominican Republic website has information and links about this subject. On 11-16-2011 Richard Alberto (DR1) wrote of this in the DR1 thread 'Dominican banks required to report on US citizens' holding. Credite Suisse (SP?) caught an upheld fine exceeding 1 billion (USD) for non-compliance, so, I am sure it will be difficult for any RD bank to say there institution can do any better at withholding assets information. AlterEgo may be correct about the triggering amount being greater than 10K. There is some magical convenience about having 9999.99, or less, in any one place at a time.

When I did our taxes this year with our accountant, I did disclose we have a foreign account. Because the balance is under $10,000 I did not even have to say what country it's in. ALL banks in DR will report to the US, don't listen to a local manager, it will be done centrally I'm sure.
 

william webster

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historically, the limit for US citizens having a foreign account was $10k..... before needing to report

may be changing....
 

manny20

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In irs.gov one can read about FBAR and FATCA (Foreign Account Tax Compliance Act) and IRS Form 8938. The Embassy of the United States Dominican Republic website has information and links about this subject. On 11-16-2011 Richard Alberto (DR1) wrote of this in the DR1 thread 'Dominican banks required to report on US citizens' holding. Credite Suisse (SP?) caught an upheld fine exceeding 1 billion (USD) for non-compliance, so, I am sure it will be difficult for any RD bank to say there institution can do any better at withholding assets information. AlterEgo may be correct about the triggering amount being greater than 10K. There is some magical convenience about having 9999.99, or less, in any one place at a time.


i know rite just like when you travel and we have to fill out that aduanas form asking if we are exceding 10,000 in cash
 

manny20

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if they are going to do it with d.r i hope they do it to the rest of latin america..or are they already doing it? or anywere else
 

jimmythegreek

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FATCA covers foreign assets...not just bank accounts.

Respectfully,
Playacaribe2

Direct ownership of foreign real estate generally is not required to be reported on Form 8938.

Foreign Real Estate

Foreign real estate is not a specified foreign financial asset required to be reported on Form 8938. For example, a personal residence or a rental property does not have to be reported.

However, if a taxpayer holds foreign real estate through a foreign entity, such as a corporation, partnership, trust or estate, then the interest in the entity is a specified foreign financial asset that is reported on Form 8938.
 
Jan 9, 2004
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Direct ownership of foreign real estate generally is not required to be reported on Form 8938.

Foreign Real Estate

Foreign real estate is not a specified foreign financial asset required to be reported on Form 8938. For example, a personal residence or a rental property does not have to be reported.

However, if a taxpayer holds foreign real estate through a foreign entity, such as a corporation, partnership, trust or estate, then the interest in the entity is a specified foreign financial asset that is reported on Form 8938.

As a director/board member of a financial institution, I was required to take FATCA training.....and I can unequivocally state that individuals must report assets over a certain threshold...and that threshold varies with your marital status and whether you live in the US with foreign assets or you live abroad.

I suggest folks contact their accountants or the IRS as the penalties are way to severe, if caught, to not comply.

http://www.irs.gov/Businesses/Corporations/FATCA-Information-for-Individuals

Respectfully,
Playacaribe2
 

william webster

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additionally, it is well reported that the IRS is quite serious about tracking down foreign assets..

we have other threads on it...

not something to toy with
 

Contango

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When I did our taxes this year with our accountant, I did disclose we have a foreign account. Because the balance is under $10,000 I did not even have to say what country it's in. ALL banks in DR will report to the US, don't listen to a local manager, it will be done centrally I'm sure.

I thought you had a Canadian Back Ground? If so you only need to disclose USD asserts of 100k or more, and that does not include vacation property.
 

jimmythegreek

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As a director/board member of a financial institution, I was required to take FATCA training.....and I can unequivocally state that individuals must report assets over a certain threshold...and that threshold varies with your marital status and whether you live in the US with foreign assets or you live abroad.

I suggest folks contact their accountants or the IRS as the penalties are way to severe, if caught, to not comply.

FATCA Information for Individuals

Respectfully,
Playacaribe2

Correct-you were a director/board member of a financial institution that is covered under the regulations for the reporting of those type of assets.

Foreign real estate directly owned in the name of a U.S. Citizen is not an asset that is covered for reporting in Form 8938 at this point in time.
 

william webster

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I cannot decipher the 'regs' and I don't care.... being an RD resident

but yanking info from Swiss banks is a clue... levying big fines on big banks tips you off

pursuing delinquent citizens in foreign lands ??....

the IRS wants a pound of flesh --- seems to me

not a game I want a hand in.....
 

william webster

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BTW... if you recall... the Swiss gov't penalized/chastised the Swiss banks for releasing said info

such is the pressure the IRS can bring to bear..in conjunction w/ the US gov't

Swiss banks were deemed to have acted illegally.... whodathunkit???