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Recent Foreign Tax Credit questions

Taxpayer, a -time US citizen, married a citizen of France on

Taxpayer, a long-time US citizen, married a citizen of France on 8/13/15. She arrived in the US on June 24, 2015. She is in the process of applying for a Green Card and has an ITN for tax filing purposes. She also filed a 2015 French tax return and paid taxes on the income that was taxed. Her husband had US source income only. How should they file; is she eligible for a foreign income exclusion and credit for the taxes that she paid in France?What is the correct tax filing procedure for the couple based on this scenario?Does it matter if her income was from self employment and if so how would this scenario differ from the previously detailed scenario?I greatly appreciate your expedite resolution to my question, thank you and God bless!

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Robin D.

Vocational, Technical or Trade School

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Canadian Retirement - I am working with a married couple to

Canadian Retirement -I am working with a married couple to prepare a tax projection. One spouse is receiving a private and public pension from Canada. Both are US Citizens.Questions:1) is this Canada retirement taxable to US and if yes, is the only credit the foreign tax credit?2) when considering AGI for ACA purposes, would this income be included?3) would he be required to complete some Canada tax return?Thanks,JW

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

4,650 satisfied customers
Income of a US citizen taxed in India, will be taxed again

income of a US citizen taxed in India, will be taxed again in US? Is there a dual tax system?The expenses were done (i.e. Air ticket, house rent, food expenses paid in India) to visit India to control themoney and for Indian taxation purpose will be allowed by US tax department to claim in my US tax returns?.US citizens residing in India for a long time and gaining income there from investments, will need to come back to the US to file IRS returns every year?Or, can it be done from India?Or, CPA in the US would be able to file my taxes thru mail correspondence from India?Thank you

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Robin D.

Vocational, Technical or Trade School

21,814 satisfied customers
I need an expat tax pro for my question. I'm planning to use

Hello. I need an expat tax pro for my question. I'm planning to use the "Streamline - offshore" program to bring my dad into compliance. He has always lived and worked in Mexico City but has a U.S. greencard. He didn't know until recently that he had to file anything in the USA.My question is: Will he owe any tax? Given that 1) He makes an average of $690K per year before taxes, 2) He's married but has to file separately because my mom does not qualify for neither of the Streamline programs, 3) They withhold around 34% of his wages in Mexico.Would the $100K "Foreign earned income exclusion" offset any difference in the tax rates? If not, around how much would he owe?Thanks!

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Robin D.

Vocational, Technical or Trade School

21,814 satisfied customers
My daughter is a US citizen, married to a citizen of the UK.

My daughter is a US citizen, married to a citizen of the UK. She has lived in the UK for nine years. He started a business in 2010. It now includes sales of computer equipment and service bureau which provides computer services. They both receive yearly incomes and dividends which are taxed at UK rates. They are both 50% owners of the business. He is currently negotiating the sale of the entire business. The UK will tax proceeds as a capital gain (at 10% entenpreneur rate). How can they minimize the US and Ohio capital gains tax for her ?JA: The accountant will know how to help. Is there anything else important you think the accountant should know?Customer: Her share of the proceeds may exceed $400k. As an asi9de, a ;local tax accountant advised me that she did not have to file a federal od state return for the dividend and salary she has been receiving for the past five years. While doing research fot this capital gains situation I have determined that the advise I was given was incorrect. He dividends have averaged about $17,000 pounds, her salary about $7,000 pounds.The sale price is in pounds.

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Robin D.

Vocational, Technical or Trade School

21,814 satisfied customers
If a US company makes a sale in Belgium, how does it avoid

If a US company makes a sale in Belgium, how does it avoid double taxation (i.e. in Belgium and the US)?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: That'JA: Is there anything else important you think the Accountant should know?Customer: That's all I know right now.

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Barbara

Enrolled Agent, Paralegal

5,662 satisfied customers
How does this work? I would like to know if the foreign tax

hi how does this work?JA: The Accountant will know how to help. Please tell me more, so we can help you best.Customer: I would like to know if the foreign tax paid to the UK can be deducted in the NY State returnJA: When we are ready I'll take you to the appropriate web page.Customer: thanks,JA: Is there anything else the Accountant should be aware of?Customer: this client paid tax in the UK for a bonus received in 2015 and is filing the 1116 with the 1040 form, however, I don't know if I can take the same deduction with the state

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Robin D.

Vocational, Technical or Trade School

21,814 satisfied customers
I am preparing a S Corp tax return. The S Corp provides

Hi,I am preparing a S Corp tax return. The S Corp provides services to German company.The work in done completely in the USA for a company that is located in Germany. Since the client is located in Germany, the money is paid from Germany. Moreover, Germany withholds 30% taxes before the money comes to the USA.The S Corp has one individual which receives a W2 and K1 from the S Crop.I have a couple questions:1. Where do I report the money that comes from Germany? Is it considered as a foreign transaction even if the work is done in the USA? Or the foreign transaction is determined based on the source of the income (which is Germany)?2. How do I claim a credit for the taxes paid in Germany? Is it claimed on the S Corp level or on the individual level ?I would appreciate your help on the matter

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Mark Taylor

Certified Public Accountant

Masters

1,966 satisfied customers
What is a conversation statement. I file an foreign tax

what is a conversation statement. I file an foreign tax credit Form 1116. the diagnostic indicate the following " a foreign currency conversion statement is required for foreign taxes reported as paid in foreign currency

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Barbara

Enrolled Agent, Paralegal

5,662 satisfied customers
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