How to avoid taxes reasonably when immigrating to the United States?

For the rich all over the world, the United States is one of the preferred destinations for immigrants. From the political and business environment to educational institutions, the United States has many powerful attractions in all aspects. Moreover, the United States has also formulated relevant plans aimed at enhancing the attractiveness of the United States to increase employment opportunities and create personal wealth. In many ways, the United States provides an ideal environment for successful people who want to immigrate to another country and continue their dream of starting a business.

For those successful people who want to relocate themselves, their families and some enterprises owned by them to the United States, it is worth considering taking a series of forward-looking measures in order to make full use of this opportunity. In the United States, we should always carefully consider the tax planning for entering the United States. Edward A. Renn, a partner of Withers Bergman ·LLP, an internationally renowned law firm with authority in American immigration tax planning, said: "A good American tax planning may be the best investment that non-American citizens can make. In these cases, failure to make tax planning in advance will always lead to higher tax payment. " Undoubtedly, this kind of planning can prove to be quite helpful for non-American citizens to save a lot of money and avoid shouldering a heavier tax burden in the future.

Although every non-American citizen who immigrates to the United States usually has his own situation to consider, there are also some universally applicable preventive measures. Let's consider some common mistakes that many non-American citizens often make.

American real estate. It is usually wise not to buy real estate in your own name. In order to minimize the relevant taxes in the United States, the most suitable arrangement for holding American real estate depends on whether the real estate is for personal use or investment. Real estate used for investment flows directly to investors (or owners) through entities entitled to relevant income, and is subject to single-level taxation as their personal income to protect creditors. Moreover, American real estate will also face American inheritance tax. Depending on the specific situation, complex tax planning or buying a simple life insurance can protect these assets.

Green card. It is necessary to understand the tax consequences after obtaining a green card. A green card is more than just an immigration document: it makes the green card winner a resident of the United States, thus making him/her subject to American tax laws. No matter how many days he/she lives in the United States every year, he/she must declare his/her personal income around the world to the United States.

Time spent in America. For non-U.S. citizens who do not have a green card, for tax reasons, it is best to live in the United States for no more than 12 1 day each year and accept the tax proposal of "substantial residence test in the United States". In this way, non-American citizens can avoid paying personal income tax in the United States according to global income, and can also avoid the obligation to declare global income in the United States.

Make alternative investments. If there is no careful plan in advance, alternative investment may lead to the relevant income being defined as "income effectively related to trade or business activities in the United States", so it is necessary to submit the US income tax return. This is especially true for real estate partnership investment companies and private equity investment funds.

Collectibles. American inheritance tax applies to furniture, art and jewelry in American houses and real estate itself. Without proper planning, artistic masterpieces hanging on the fireplace may generate quite high inheritance tax.

Shares of American companies. Stocks are subject to American inheritance tax. Buying American stocks in new york Stock Exchange or Nasdaq market will generate a large amount of inheritance tax burden, but this part of the burden can be avoided or exempted through reasonable arrangements.

These are just a few considerations that individuals who travel to the United States need to evaluate and solve in the US immigration tax planning. Every non-American citizen should evaluate his own situation and weigh various tax planning schemes. Therefore, the result will be a set of tax planning decisions based on professional knowledge and practical experience.

In short, any non-American citizen who considers immigrating to the United States is likely to make a major financial mistake if he does not plan the immigration tax in the United States. In addition, the time node of this tax planning is before going to the United States. Ryan explained: "It is the simplest, most cost-effective and most effective to make tax planning and make corresponding arrangements before making investment or determining residence in the United States."