What are the insurance tax plans to consider when immigrating to the United States?

Hello, we are KEDP Anzhi Qinzi, and we will answer your questions below.

Before emigrating, the first thing you should do is to figure out why you want to emigrate. Only by clarifying the clear immigration motives can we solve the problem of real estate planning, and then we will consider the issue of substantive taxation.

In view of the above factors, it is necessary to discuss with professional accountants to draw up the current property distribution table, the capital budget table for the next ten years, and the possible timetable for disposing of the property before investing in immigrants, so as to formulate a perfect immigration property plan.

Pre-immigration tax planning methods are as follows:

Method 1: the spouse who wants to live in the United States for a long time is a green card applicant, and the other party does not apply for EB-5 for the time being.

Those who apply for investment immigration with EB-5 should make a good plan before investing. When couples plan to apply for immigration, spouses with low income and little property are the main applicants for green cards. If only the wife applies for a green card, there will be no overseas income tax problem for her husband's assets outside the United States. At the same time, the property under the wife's name should be planned before immigration, because according to the requirements of American tax law, green card holders must disclose the company shares they hold overseas, and at the same time, they must declare their overseas financial accounts, including bank accounts, investment accounts, insurance accounts and companies they control. Therefore, low-income applicants can reduce the income tax in the United States, while applicants with less property can reduce the gift tax or abandonment tax and simplify the content of tax returns.

Method 2: consider the difference between property disposal and non-property disposal before immigration.

After obtaining a temporary green card, if you sell real estate or stocks outside the United States, even if it is a long-term capital gain, the income may still be paid in the United States? 20% of federal capital gains tax and state tax, and 3.8% of net investment income tax (NIIT) if it exceeds a certain income.

If you make tax arrangements before emigration, you can sell your property or stock in advance, buy it back after emigration, or give it to your family before emigration to avoid related tax problems. But you can consider not selling your own house, because if you sell it after immigration, you can enjoy the tax allowance of $250,000 (individual) or $500,000 (husband and wife) for your own house. Of course, if you own a house overseas, you should also consider the local disposal cost.

Mode 3: Giving gifts before emigration.

If the property of immigrants exceeds $654.38+0.654.38+0.4 million, what will they do when they become American tax residents in the future? 20 19? The annual allowance for lifetime gift tax and inheritance tax is only? 65,438 dollars+65,438 dollars+400,000 dollars. Once the property held exceeds this amount, it will be donated later, or unfortunately there will be inheritance problems, the US federal inheritance and gift tax rate will be as high as 40%.

Therefore, if you do not formally enter the United States through immigration registration, you can be a non-tax resident of the United States in principle, and you can be exempted from the gift tax of the United States regardless of the amount of the gift and the object of the gift.

Method 4: Prepare the net asset value report at the time of immigration, which is used to declare abandonment tax.

When submitting the property declaration documents to the Immigration Bureau, it is necessary to keep a copy for the reference of tax agents in the future, so as to know which properties have been declared to the Immigration Bureau. In addition, in order to avoid the trouble of calculating capital gains when renouncing nationality in the future, it is best to declare all the properties under the name of the applicant and the accompanying applicant at the time of immigration registration, and ask an impartial third-party evaluation agency to issue a net asset report, so as to confirm the cost of immigration when renouncing nationality in the future, so as to clearly calculate the abandonment tax. This appraisal report is only applicable to abandoned projects. If the property is actually sold, the cost of the property is still the original purchase cost.

Method 5: Avoid becoming a tax resident before getting a green card.

Before obtaining a temporary green card, if you often visit the United States on a business visa (B 1, B2). According to American tax law, you stayed in the United States for more than 65,438+083 days in the last year or 65,438+083 days in the last three years. According to the American tax law, you will become a tax resident of the United States and pay taxes like an ordinary American citizen, so be careful.

Method 6: after immigration, establish living trust or ILIT trust insurance in the United States for tax planning.

After arriving in the United States, a living trust or ILIT can be established, which can effectively avoid future inheritance disputes, reduce or delay the tax burden in the United States, and shorten the processing time in estate distribution. In addition, if both husband and wife are American citizens, giving gifts to each other is tax-free.

Mode 7: overseas work is tax-free in the United States.

According to the US tax law, American residents who have worked overseas for more than one year can enjoy the overseas labor tax exemption of US$ 65,438+005,900 (2,065,438+09), that is, they can only enjoy this tax exemption if they stay overseas for more than 330 days in a year, and it is only applicable to labor income. But for green card holders, this is contradictory, because green card holders need to show their willingness to live in the United States for a long time, otherwise their green cards may be confiscated. If the green card holder cannot return to the United States within six months, but can provide reasonable reasons, he can apply for a "white paper" valid for two years. Therefore, if you apply for a re-entry permit and use a green card and a re-entry permit, you can legally stay overseas 1 to 2 years, which not only meets the requirements of the immigration law, but also enjoys tax exemption as stipulated in the tax law.

Method 8: Make good use of non-American overseas gifts and American gift tax allowance.

If overseas non-Americans donate more than $654.38+million to Americans every year, Americans only need to declare Form 3520 after obtaining it, so there is no need to pay taxes at all. In addition, the donation of US$ 654.38+0,654.38+04,000 (2065,438+09) to others by US tax residents in their lifetime is tax-free, and the annual donation of US$ 654.38+05,000 (2065,438+09) by each recipient is also tax-free, but if the donation is made within one year,

Mode 9: After immigrants report, non-US tax residents set up trusts in the United States, and the beneficiaries are US tax residents.

The American trust system has a history of 100 years. After new immigrants move to the United States, the next generation or generation may settle in the United States. If the previous generation left their property abroad, it may not be managed or used by the next generation in the future. Therefore, if the previous generation does not have American identity and has no plans to acquire American identity in the future, overseas assets can be passed on to the next generation who have settled in the United States by establishing an American trust. In principle, non-US tax residents can set up American trusts in Delaware, Nevada and other states with relatively perfect trust systems. Can be divided into revocable trust and irrevocable trust. Considering tax saving and overseas property disclosure, the overall plan is as follows:

1. Revocable trust: mainly used for holding property outside the United States. Before the establishment of the trust, the revocable trust belongs to the "trust outside the United States" because its founder is a non-US tax resident. However, if the trust only holds overseas assets and the overseas income it generates, there will be no problem of US overseas asset disclosure and US income tax declaration. However, once the founder dies, the trust will be automatically converted into an irrevocable trust. In addition, this trust asset does not have the gift tax and inheritance tax in the United States, and the value of the trust asset will automatically increase from the value at the time of establishment to the value at the time of the founder's death. In the future, if the beneficiary obtains the beneficial assets and sells them, not only the long-term capital gains tax rate can be lower, but also the tax revenue may be reduced.

2. Irrevocable trust: mainly used for holding assets directly in the United States. After the establishment of the trust, the trustor directly remitted the trust assets from outside the United States to the entrusted account in the United States. Because the donor is a non-US tax resident and the donated assets come from outside the United States, there is no US gift tax problem. In the future, this asset will be held by American Trust until it is distributed to beneficiaries. This will have an absolute effect on the protection of the beneficiary's assets, and the creditor or spouse of the beneficiary will not be able to easily obtain the principal from the trust assets, thus achieving the purpose of property inheritance and protection.