This is correct. People who open accounts with a US passport will be reported. The solution is opening an account with a foreign ID with no ties to the US. It's expensive, but for certain persons well worth the investment.
- Thread starter manny20
- Start date
opinion on the u.s. taxing on d.r properties on u.s citizen and residents
This is correct. People who open accounts with a US passport will be reported. The solution is opening an account with a foreign ID with no ties to the US. It's expensive, but for certain persons well worth the investment.
Actually the reality is that this is not entirely correct. People who have accounts open with a U.S. Passport will be reported under FATCA rules only if the account is over a certain dollar threshold. That amount is $50,000. Those accounts under that amount are not required to be reviewed nor reported.
In terms of entities, the threshold is even higher at $250,000 for review and reporting.
That may well be true...But, under FBAR, US citizens with an account or accounts that hold/total over $10,000 at any time in a calendar year MUST report that/those account(s) on FinCEN Form 114 each year....when they file their taxes.
Respectfully,
Playacaribe2
The post was in reference to bank requirements under FATCA guidelines for reporting. The poster claimed all U.S. person accounts will be reported, which is incorrect depending on whether the account is over $50,000 at any time during the year.
In terms of FBAR, that is a U.S. Treasury Dept. form to be filed by U.S. taxpayers on foreign accounts over $10,000, which has no bearing on FATCA reporting guidelines for foreign banks and financial institutions.
Jimmy:
I do not disagree with you...but offered further clarification/distinction......
......And that clarification/distinction is now further highlighted by FBAR requirements...to wit;
Under FATCA, foreign financial institutions will be reporting to Treasury (IRS) US citizen accounts above the threshold....AND under FBAR, citizens are also required to self report to the IRS (Treasury) offshore accounts aggregating over $10,000 in any calendar year.
If you read betwen those lines....if a FATCA report is generated on a taxpayer.....and the taxpayer has failed to self report under FBAR...and the FATCA report ends up at Treasury (IRS), which it will....then you can probably guess the outcome.....and the reporting requirements are different...and confusing for the average taxpayer.
Another of the myriad of reasons why the tax code should be completely overhauled.
Respectfully,
Playacaribe2
we need to go back to his post #20
talk details about the regs....
who can translate them???
a virtual maze with plenty of wiggle room for the gov't...............imo
OK.. let us take a hypothetical example based on this FATCA Information for Individuals
Say my nephew buys an apartment here for $100k. The rent is $600 a month. It is paid directly into his brokerage account in the United States. This is $7200 of income every year.
1. This must be declared as income. Yes?
2. He cannot take any depreciation on this property as he would be able to take on rental property in the US. I think that in the US, he could depreciate the property over 28 years. Yes?
3. He cannot deduct any costs in coming to see the property to "oversee" his investment. Right?
However.
If the rent money is deposited in a dollar account in the Dominican Republic, will he also have to declare it or would it fall under foreign earned income?
Is there any way to transfer the money back into the US account without actually being there here in person?
OMG././ I think that I am actually asking questions about money laundering 101?!?!??!?
my ancestors are rolling in their graves!!
Say my nephew buys an apartment here for $100k. The rent is $600 a month. It is paid directly into his brokerage account in the United States. This is $7200 of income every year.
1. This must be declared as income. Yes?
2. He cannot take any depreciation on this property as he would be able to take on rental property in the US. I think that in the US, he could depreciate the property over 28 years. Yes?
3. He cannot deduct any costs in coming to see the property to "oversee" his investment. Right?
However.
If the rent money is deposited in a dollar account in the Dominican Republic, will he also have to declare it or would it fall under foreign earned income?
Is there any way to transfer the money back into the US account without actually being there here in person?
OMG././ I think that I am actually asking questions about money laundering 101?!?!??!?
my ancestors are rolling in their graves!!
It should be clear that all the above regarding a reporting threshold of $10,000 is theory, as least in the the DR. Banks in this country will be reporting EVERYTHING for US account holders. According to bankers, they are doing this to make sure nothing falls through the cracks and no mistakes are made. Banks locally are planning to over report since they've already went to trouble and expense to be complaint.
Its not theory Seachange....its the law.....and that reporting requirement for $10,000.00 is not on the banks...its on the taxpayer.
The banks need only comply with the mandates of FATCA...which has different threshold reporting requirements. Citizen taxpayers must comply with FBAR.
But I do agree that the banks may be overzealous in reporting....so as to not be threatened with a lockout to our banking system for clearing of checks, routing, etc.....that would literally break the back of all the DR banks.
Respectfully,
Playacaribe2
I think the banks are touchy....
one of RD's largest law firms had their account terminated by an RD bank....
and had trouble finding a new one....
one of RD's largest law firms had their account terminated by an RD bank....
and had trouble finding a new one....
If you have a DR Company set up and your house is an asset in that company, then does FACTA have any influence? Many people had been talking into starting company solely to own their homes. The local tax benefits on this have disappeared, but I am sure many people still have homes held in this way.
Playacaribe, we all know what the laws is. The perspective offered by my post was the practically of the law. "If anyone opens a bank account in the DR with a US passport, they can presume that fact and any history will be reported to the US Treasury Department no matter the account size." This also goes for US beneficiaries listed on the account and even US addresses.
I'm amused to hear people say that Americans "hide" their money offshore. Like they did with Romney simply because he had an account in Cayman.
If you hide your money from the IRS, you are breaking the law. Period.
But note well that FATCA really doesn't apply to FATCAts and bureaurats with friends.
Play around with this law and you'll find Dominican troops in your home with combat boots and AK47s, beating the shyte out of you, stealing everything they can, as they execute a warrant created at the request of the U.S. Consulate. I've seen it up close in Venezuela years ago.
Unlike Euros and others, the U.S. Embassy isn't always a friend to its citizens.
If you hide your money from the IRS, you are breaking the law. Period.
But note well that FATCA really doesn't apply to FATCAts and bureaurats with friends.
Play around with this law and you'll find Dominican troops in your home with combat boots and AK47s, beating the shyte out of you, stealing everything they can, as they execute a warrant created at the request of the U.S. Consulate. I've seen it up close in Venezuela years ago.
Unlike Euros and others, the U.S. Embassy isn't always a friend to its citizens.
Yes....and the treatment is disparate. Under FATCA it appears citizens will be better off holding title to offshore property in their own name.....if they are under threshold requirements. Offshore corporations and other holding entities of US citizens do not have threshold requirements and MUST be reported no matter the value.
Respectfully,
Playacaribe2
I hold mine still that way Windy
They say its easier to probate wills via corporate ownership....
I won't be around to find out
happened not too long - I forget where
squad of black SUV's....US troops.... converged on an American.... for strip and search type operation
I said it before..... they are taking this initiative very seriously
I'm on the sidelines - watching
WW:
FATCA is a reporting requirement and should not be considered as a single reason to take property out of corporate ownership. Each person must evaluate and implement their own legal, financial, and estate planning strategies.
Respectfully,
Playacaribe2
I'm Cdn PC2..... corporate for my will is the only reason its there..... held that way
and I may change that
Our NYC apartment was put in my children's names in 1991.... they were 5 & 7
Just sold it last year...... more than one way to skin a cat
My philosophy is to die with ZERO....
I arranged it for my mother... she had one tax free asset left in her name at death
A lawyer's nightmare --- no fees
and I may change that
Our NYC apartment was put in my children's names in 1991.... they were 5 & 7
Just sold it last year...... more than one way to skin a cat
My philosophy is to die with ZERO....
I arranged it for my mother... she had one tax free asset left in her name at death
A lawyer's nightmare --- no fees
My assumption and I stand corrected since you had mentioned NY in a number of other posts.
.....And my philosophy is that we all die with zero....because upon death, its all gone and directed elsewhere lol.
Respectfully,
Playacaribe2