Foreign Earned Income Exclusion (Form 2555)
The US tax system requires all its citizens and permanent residents to file tax returns based on worldwide income, regardless of where they live. As such, if a person lives overseas and files taxes in a foreign country, the person also needs to report the foreign income to the IRS by filing US taxes. In Read the full article…
Foreign Nationals in the US Are Now Subject to US Income Taxes
Foreign nationals in the US: Do you have a federal income tax filing obligation? Now that you moved to the US, whether on a temporary basis or permanent, you may need to consider whether you have a US income tax return filing requirement and pay taxes in the US. If you are a foreign national Read the full article…
KROST Welcomes New Principal – Evelyn Fernandez
Los Angeles-based CPA Firm, KROST CPAs and Consultants, welcomes Evelyn Fernandez, CPA, MST, as a new Principal. Evelyn has over 15 years of experience in the public accounting profession, providing strategic advice and tax planning to her clients. Her areas of expertise include inbound and outbound tax planning for individuals and multi-national entities, tax planning Read the full article…
Changes in Reporting Requirements for Foreign-Owned Domestic Disregarded Entities
Foreign-owned domestic disregarded entities have not had filing requirements in the past unless an election was made to treat it as a corporation, known as “check the box.” Disregarded entities are most commonly single-member LLC (SMLLC). Generally, income tax and reporting requirements would not be reported separately. Rather, they would have been reportable on the Read the full article…
Expatriation Exit Tax
US citizens living abroad and foreign nationals residing in the US are renouncing their citizenship in a record-breaking fashion. During the first three quarters of 2020, the IRS published 5,045 individuals who have made the ultimate decision to expatriate and formally cut ties with the United States. This amount is significantly higher than the numbers Read the full article…
Is the GILTI High Tax Exception a Benefit for Controlled Foreign Corporations?
Navigating the ins and outs of US taxes as a US shareholder of a controlled foreign corporation (CFC) has been complex in the last couple of years due to changes in regulations from the IRS. Taxpayers need tax planning to determine the best strategy to mitigate the CFC’s tax liabilities. In 2019, the IRS and Read the full article…
Foreign-Derived Intangible Income (FDII) Can Increase Cash Flow for Manufacturing Companies and Distributors with Global Operations
This is a preview of one of the articles in the new KROST Quarterly Manufacturing Issue, titled “Foreign-Derived Intangible Income (FDII) Can Increase Cash Flow for Manufacturing Companies and Distributors with Global Operations” by Evelyn Fernandez, CPA, MST. The Tax Cuts and Jobs Act (TCJA) included several tax changes relating to the US taxation of Read the full article…
Tax Breaks for US Citizens Living Abroad
More and more US citizens are moving abroad for various reasons. The move could be work-related, family-related, or simply adventure-related. Technology has also made it possible for many professionals to be able to work from anywhere in the world. Most US citizens aren’t aware of the tax breaks they may be able to get as Read the full article…
KROST Quarterly Magazine: The Manufacturing Issue is Now Available!
We are happy to announce the release of our newest quarterly magazine! The Manufacturing Issue highlights some of the hot topics in manufacturing, including accounting for PPP, transfer pricing, Foreign-Derived Intangible Income (FDII), R&D tax credits, and more. What You’ll Find Inside This Issue: Accounting for PPP Loans and Forgiveness by Keith Hamasaki, CPA Manufacturers Read the full article…
The California Safe Harbor for Residents Working Abroad
If you are a California resident who accepts overseas assignments, or an international employer with California residents working abroad, you should know about the California Safe Harbor. The California Safe harbor is available for certain individuals leaving California under employment-related contracts. The safe harbor provides that an individual domiciled in California who is outside California Read the full article…
