Tax planning before American investment immigration

1. Choose a spouse with low income and little property as a green card applicant.

If one spouse has low income and little property and applies for a green card, the assets of the other spouse outside the United States are not taxed. In addition, if the green card applicant holds property outside the United States, he must also disclose his overseas assets, including company shares and financial accounts, to the IRS in accordance with laws and procedures.

2. Avoid becoming a taxpayer before getting a green card.

If the applicant stayed in the United States for more than 183 days in the last year, or according to the US tax law, the weighted calculation of the first three years exceeded 183 days.

3. Consider property disposal before immigration.

You can sell your own property or stock before emigration, buy it back in cash after emigration, or give it to your family, thus avoiding related tax problems.

However, if you own your own house in the United States and have lived in the past five years and sold it two years later, you can enjoy a tax allowance of 250,000 (single person) to 500,000 (couple).

4. Make good use of the tax-free quota for foreign gifts and American gifts.

If the overseas assets donated by foreigners to Americans exceed $654.38 million per year, the donee only needs to declare after obtaining them, and has no obligation to pay taxes at all.

5. When preparing for immigration, you should report your net assets.

6. Establish LivingTrust, ILIT Trust Insurance or IDGT Trust in the United States for tax planning after immigration.

7. If you choose to work overseas (outside the United States), you can enjoy the US tax exemption policy.

In addition to the above tax planning methods, some suggestions are added: in the foreseeable time, the property with appreciation potential can be arranged in the names of children, spouses or other relatives, while the disposal of those depreciated property can be delayed, resulting in capital loss in tax law, and other capital surpluses can be hedged in one time or future capital surpluses can be hedged in stages.

Decentralized disposal of property is entirely possible to greatly reduce tax costs. When investors have the motivation to emigrate and decide to emigrate, they should start sorting out their property, consult professional financial consultants or certified public accountants, draw up a property disposal plan for themselves and list a timetable, apply for emigration step by step according to the timetable and specific conditions, and ensure that the property under their name is included in the scope of the US tax law as little as possible when they get a green card.

It can be seen that before preparing to immigrate to the United States, we must consult professional lawyers and certified public accountants who are proficient in American tax planning, properly handle property, and reasonably avoid or reduce various tax expenses after immigration, so that we don't have to worry that assets will become the object of taxation by the US Inland Revenue Department.