Tax Tips for US Citizens Living in the Netherlands
Is 2012 a Good Time to Realize Capital Gains? (Specifically for NL Residents)
Assuming no last-minute changes, the maximum US tax rate on long-term capital gains is set to increase on January 1, 2013, from 15% to 23.8% (including a 3.8% Medicare surcharge on investment income over $250,000). There is a lot of advice going around for people to...
2012 Year-End Tax Planning for Dutch BV’s (and Other Privately-Held Corporations)
If the current "fiscal cliff" tax laws go into effect as scheduled, the maximum US tax rate on qualified dividends will go from 15% to 43.4%. What this means for owners of a Dutch BV is that you may have to "top off" your taxes on dividends with an additonal 18.4% to...
Updated Foreign Bank Account Report (FBAR) Form and Instructions Available (Revised November 2011)
If you haven't yet submitted your 2010 (or earlier) Foreign Bank Account Report (FBAR), make sure you use the latest version of Form TD F 90-22.1. The form should mention "Rev. November 2011" in the upper-left-hand corner. The latest form can be found at...
2011 Foreign Earned Income and Housing Exclusion Amounts
For taxable year 2011, the maximum foreign earned income exclusion amount under §911(b)(2)(D)(i) is $92,900, figured on a daily basis, times the number of days during the year that you meet the bona fide residence test or the physical presence test. The foreign...
IRS Gives Taxpayers Another Chance to Disclose Foreign Bank Accounts
The IRS is offering people with undisclosed income from offshore accounts an opportunity to participate in a new, voluntary disclosure initiative in order to get current on their tax returns. The 2011 Offshore Voluntary Disclosure Initiative (OVDI) will be available...
How to Complete Your 2010 Foreign Bank Account Report (FBAR), Form TD F 90-22.1
Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts is due every year on June 30, with no extensions possible. This form needs to be completed if the total combined value of all of your accounts outside of the United States exceeded $10,000 at any point...
Reminder: Q4 2010 Estimated Tax Payments Due January 18, 2011
Just a short reminder that the final 2010 Estimated Tax Payment is due January 18, 2011 (since January 15 falls on a Saturday and Monday, January 17 is a public holiday in the US). To avoid (further) penalties for underpayment of estimated tax, in general, by January...
2010 Year End Tax Planning for Dutch Residents: Tax Loss Harvesting
A fairly common tax planning tip is to try to net out your capital gains and losses at the end of the year, so that (ideally) you do not have a "net" taxable gain, especially not a net short-term capital gain since this would be taxed as ordinary income (as high as...
2010 Year End Tax Planning for Dutch Residents: Roth IRA Conversions
It's getting close to the end of the year and the final deadline for Roth IRS conversions. The rules have been relaxed quite a bit so that pretty much anyone can convert their "Traditional" IRA to a "Roth" IRA. The cost of doing this for US purposes is that you need...
2010 Year End Tax Planning for Dutch Residents: Annual Gifting
If you are like many Americans, you may be gifting amounts to your children, grandchildren, friends, etc. each year. Or perhaps you are the lucky recipient of such a gift. If so, you are probably familiar with the US rules that allow you to gift up to $13,000 in 2010...