Tax Tips for US Citizens Living in the Netherlands
Are You Subject to Dutch Inheritance Tax?
One of my most shocking discoveries in working with US clients in the Netherlands is how few of them realize that they are potentially subject to Dutch Inheritance Tax (Successiebelasting). Many US citizens living in the Netherlands (actually their heirs) would in...
Is Exercising in 2010 Your Best “Option”?
If you have stock options that have vested, or will vest in 2010, you may be tempted to exercise these options in 2010 since the top US tax rate is 35%, rather than wait until 2011, when the top tax rate is potentially going to increase to 39.6% Conventional advisors...
How A Roth Conversion Can Ruin Your Retirement (for Dutch Residents)
To summarize the detailed explanation below, Dutch resident taxpayers should be very cautious about converting from a Traditional IRA to a Roth IRA. Here's why: For 2010, the strict limits that have kept individuals from converting their "Traditional" IRA's to "Roth"...
FA Magazine: Swiss Ruling No Help To Foreign Account Holders
Interesting article from FA Magazine. For the link to the original article Click Here. Swiss Ruling No Help To Foreign Account Holders (January 27, 2010) (Dow Jones) It may seem like a big win for U.S. taxpayers, but a new Swiss court ruling in the UBS AG tax evasion...
Reminder: Q4 2009 Estimated Tax Payments Due January 15, 2010
Just a short reminder that the final 2009 Estimated Tax Payment is due January 15, 2010. To avoid (further) penalties for underpayment of estimated tax, in general, by January 15, 2010 you should have paid (in combination with 2009 US taxes withheld and all other 2009...
2009 Foreign Earned Income and Housing Exclusion Amounts
For taxable year 2009, the maximum foreign earned income exclusion amount under § 911(b)(2)(D)(i) is $91,400, 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...
Complete Text of Sec. 301 of P.L. 110-245 (H.R. 6081) – Applicable “Exit Tax” Law for Expatriators
Here is the full text of Section 301 of P.L. 110-245 (commonly known as H.R. 6081, the Heroes Earnings Assistance and Relief Tax Act of 2008). Sec. 301 is the section that relates to expatriators/expatriation on or after June 17, 2008 (as signed by President Bush)....
Offshore Pension Basics
Many expats end up with a bit of savings while living outside the US. In addition, moving around to different countries and working for many different companies can leave expats feeling left out (or at least confused) when it comes to pension plans and social security...
Is a Foreign Mortgage Worth the Risk?
Anyone who has asked me knows I am no fan of investing in real estate in (Western) Europe at the moment. One of the biggest risks I see (aside from the fact that real estate prices have not "corrected" yet in many cities) is a little-known IRS law concerning taking...
How is the Sale of a Foreign Personal Residence Taxed in the US?
One of the most common issues I see (and probably the one with the most impact) is the taxation on the sale of a foreign personal residence. US citizens (and greencard holders) are required to use the US Dollar as their "functional currency" for all "personal"...