How to make good tax planning before investing in immigration to the United States

Property planning issues to be considered before immigrating to the United States

Issues to be considered in immigrating to the United States

1. As the principal applicant, in whose name did you get the American green card?

2. The income from the real estate under the name of the principal applicant who obtained the American green card before immigration and his * * * co-acquirer, and the income used for tax payment in the United States.

3. How to plan the real estate, so that the main applicant and the applicant can reasonably control the tax risk after immigration?

4. If you don't rule out giving up your American citizenship or green card in the future, how can you plan your property so that you don't have to pay more unjust taxes when you give up your American citizenship in the future?

After considering the above four questions, you can consult with professional accountants or financial planners to draw up the current property distribution table, the capital budget table for the next five years, and the possible timetable for the disposal of property before investing in immigration, so as to make a perfect immigration property plan to avoid paying local taxes in China before immigration, and all assets after immigration will be taxed by the IRS and stripped.

Six common tax planning methods before and after immigration

Option one, choose the right green card applicant.

1. The spouse with low income, little property and long-term residence in the United States is the main applicant for the green card. If only his wife applies for a green card, then Mr. Wang's assets outside the United States are not taxed.

2. At the same time, the property under the wife's name should also be planned before immigration. It is best not to own assets outside the United States. Because according to the requirements of American tax law, green card holders must disclose their overseas assets and company shares, and also declare overseas financial accounts.

Option 2, consider the difference of property disposal before immigration.

American tax residents need to tax global capital gains. After obtaining a temporary green card, if you sell real estate or stocks outside the United States, even if it is long-term capital gains, you may still have to pay 20% federal capital gains tax and state tax in the United States.

The following cases are for your reference and comparison. Assume that the applicant has the following three assets before emigration. Asset A: the cost is USD 654.38+00,000, the value before emigration is USD 654.38+05,000, and the market value is USD 654.38+07,000. Asset B: The cost is USD 800,000, the value before immigration is USD 500,000, and the market value is USD 400,000. Asset C: The cost is USD 6,543.8 +0.2 million, the pre-immigration value is USD 6,543.8 +0.3 million, and the market value is USD 6,543.8 +0.4 million.

In the case of 1, the applicant did not dispose of assets at all before emigration, but disposed of assets at market value after emigration. Asset A made a profit of $700,000, asset B lost $400,000 and asset C made a profit of $200,000. In this case, the profit is $900,000, and after deducting the loss of $400,000, the actual profit is $500,000. Because he sold it after becoming a taxpayer in the United States, he still paid 20% of the American capital gains tax, about $654.38 million, and finally made a net profit of $400,000.

In case 2, the applicant before immigration disposed of all the value-added assets at the pre-immigration value, and then repurchased them, and disposed of all the assets at the current market price after immigration. In this case, Asset A earned $500,000 before immigration, $200,000 after immigration, $400,000 after immigration, $654.38 million before immigration and $654.38 million after immigration.

In this way, the $600,000 he earned before he immigrated did not need to pay the 20% capital gains tax in the United States, and actually earned $600,000. After emigration, I bought back A and C assets and made a total profit of 300,000 dollars. However, because B lost $400,000 in assets, there was no need to pay taxes in the end, and the loss of $6,543,800 was offset by other income, and the net profit was $500,000, which was $6,543,800 more than that of 654.38+ 0.

Therefore, tax arrangements should be made before immigration, and assets such as real estate and stocks can be sold in advance, and cash can be bought back after immigration. Or give it to your family before emigration, which can avoid related tax problems. However, the self-occupied house cannot be sold for the time being, because if the self-occupied house is sold after immigration, you can also enjoy the tax allowance of $250,000 for individuals or $500,000 for couples.

Option 3: Prepare the net asset value report at the time of immigration for future use when filing abandonment tax.

Many immigrants actually don't know whether they will choose to give up American citizenship in the future. Therefore, I suggest that when preparing for immigration, you must submit a copy of the property declaration document to the Immigration Bureau to avoid problems in calculating the capital gains tax when selling assets in the future.

It is best to ask the notary office to cooperate with the evaluation agency to issue a report on the net asset value of the applicant and all the affiliated property of the applicant when registering for immigration, so as to confirm the immigration expenses when deciding to give up American citizenship in the future, so as to clearly calculate the waiver tax. However, please note that the appraisal report is only used when the property is abandoned. If the real estate is actually sold, the real estate cost should still be based on the original cost price.

Plan 4: Avoid becoming a tax resident before getting a green card.

There are three types of taxpayers in the United States: American citizens; China passport holders of US green cards; China passport (China's parents didn't hold American green card) stayed in the United States for more than 65,438+083 days in the last year or for more than 65,438+083 days in the first three years according to the weighted calculation of American tax law.

The weighted calculation method of 183 days: the number of days in the United States this year (at least 3 1 day) +65438+ 0.3 of the number of days in the United States last year+65438+0.6 of the number of days in the United States the year before. If the calculation result does not exceed 183 days, it is not regarded as a US tax resident. Why is this important? Because many people are afraid of becoming tax residents before immigrating to the United States, they transfer most of their assets outside the United States to their parents before obtaining temporary green cards, hoping to achieve the effect of tax avoidance.

Planning is good, but many new immigrants have the habit of taking their parents to live in the United States for a short time every year. However, forgetting to calculate their annual stay in the United States may unfortunately make them tax residents in the United States. Here is a reminder that non-Americans should not stay in the United States for more than 120 days each year.

Plan 5: Establish overseas family trust before emigration.

The advantage is that if properly set, it can not only achieve the effect of preservation and isolation, but also make the assets in the trust permanently free from the influence of American inheritance tax and gift tax. According to the current laws and tax laws, it means that each generation can save about 40% of the US federal tax at most. But the trust must be established before the family moves to the United States to become a tax resident.

Plan six. After immigration, establish a living trust or an irrevocable life insurance trust in the United States.

The establishment of living trust can effectively avoid future inheritance disputes, reduce or delay American taxes, and shorten the processing time in inheritance distribution. In addition, if both husband and wife are American citizens, giving gifts to each other can also be tax-free.

One of the concepts of living trust is AB trust. In this trust structure, American couples can put * * * and assets into AB trust, and designate the other party as the living beneficiary, and the final beneficiary can be children. Husband and wife have no property ownership before their death, but they can enjoy the income generated by the assets in the trust.

If one of the spouses dies, suppose Sir, AB Trust will be split into A Trust and B Trust. First of all, you can use Mr. Wang's lifelong inheritance tax allowance at that time to transfer his legacy to Trust B, and then use the unlimited inheritance tax allowance between husband and wife to transfer the remaining property to Trust A, so that you can pay the inheritance tax when Mr. Wang dies and achieve the effect of deferred inheritance tax.

When the future wife dies, only the estate in Trust A will be included in the wife's entire estate to calculate the tax, while Trust B will allow the wife to continue to enjoy the income in Trust B in the future under certain conditions, but it will not be regarded as the legal owner of Trust B. ..

Therefore, in the future, if the wife dies and the children get the inheritance in the B Trust, it will not be regarded as the mother's inheritance, and this part will not be subject to inheritance tax. After the death of the surviving spouse, the assets in Trust A and Trust B will also be transferred to the ultimate beneficiary as agreed.

In the United States, if a person buys life insurance before his death, his life insurance compensation will be included in the insured's estate for taxation after his death, but an irrevocable life insurance trust can be established by combining insurance and trust to save inheritance tax. This trust structure must be irrevocable. If the trust is revocable, the beneficiary is still regarded as the owner of the trust, so the income from the policy is still regarded as a part of the estate, and the trust has no tax-saving significance.

Also, the insured cannot be a trustee, but must be a legal adult or an institution as a trustee, usually a relative, lawyer or accountant. It should also be noted that this trust must be established three years before the death of the insured. If the insured dies less than three years after the establishment of the trust, the trust does not have the effect of tax saving, and the final insurance claim is still subject to inheritance tax.

Because there are too many uncontrollable factors in this trust, I strongly suggest that it must be established as soon as possible if there is a demand in this area.