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There are many different
systems worldwide. Individuals may have difficulties interpreting what tax system is a work. Uncertainties of the common tax systems or what tax system should be used if you are a dual citizen often lead to questions like the ones answered below by the thousands of Experts.
What are the most commonly used tax systems worldwide?
Virtually every country in the world has some form of taxes. The primary tax system worldwide are personal
, social security and
, domestic goods and services taxes, trade taxes,
, property taxes, import and
, and nontax revenues from seigniorage and public enterprises.
Items that will change depending on what country would be things like the percentage of tax, the mix of the tax, and what they deem as taxable. Addition they may call a certain tax by a different name.
might be called a VAT (
value added tax
) in some countries.
If I work on an unincorporated territory. Do I have to pay into the federal tax system?
U.S. possessions are islands that the U.S. owns but have not made into a State of the United States. U.S. possessions are divided into two groups. One group has their own governments and tax systems. This group includes the possessions; Puerto Rico, U.S. Virgin Islands, Guam, American Samoa, and The Commonwealth of the Northern Mariana Islands. The second group does not have their own government or their own tax systems. This group consists of; Midway Island, Wake Island, Palmyra Island, Howland Island, Johnston Island, Baker Island, Kingman Reef, Jarvis Island, and some other U.S. owned islands.
People who are in the second group that do not have their own tax system are subject to the income taxes and
of the U.S. federal income taxes.
Does the Trust have to pay Federal and State Estate Income Taxes at the time of death on the value of transferred assets contained within the Trust?
It is possible that two different tax systems would be in the mix. If it is an irrevocable trust and has its own tax Identification number then it pays its own income taxes per the tax rates created for trusts. If it is not an irrevocable trust then the income, gains, etc. go through to the grantor.
are transfer taxes that are due from the estate.
How does dual citizenship of the United States and Brazil affect taxation of earned income in the United States?
Dual citizenship does not affect
of earned income in the United States. Any income earned in the U.S. is taxable in the U.S. even if you are a non-resident alien. If you are trying to figure out which country of your dual citizenship is considered your primary regarding taxations of all your income then you would typically refer to the mutual bi-lateral tax treaty. Currently the U.S. and Brazil are still in negotiations of this treaty.
One of the items considered when a country deems themselves as primary would be where the individual has their primary home. This would surround determinations like vital interests and where the habitual home is. Often times the amount of years in the primary home comes in to play as well.
If I exercise stock options and end up triggering Alternative Minimum Tax (AMT) for 2011, how does that impact deductions?
What you are referring to are two separate tax systems. The regular tax system and the AMT tax system. They each have their own
of what is included into the
as well as what can be deducted.
Obtaining correct information and insight about tax systems can help when faced with circumstances involving one or more tax systems. Experts can helps answer what kind of tax systems are used worldwide or if wages working in a possession of the U.S. is taxed under the
system. Get the answers fast and affordably by asking an Expert.
Recent Tax System Questions
I'm a naturalized US Citizen, living in Florida, and
Hello, I'm a naturalized US Citizen, living in Florida, and all my family is in Brazil. My parents are planning the disbursement of their Estate. I would like to know what are the tax implications for: (1) bringing money received there as a gift into the US, (2) receiving money transferred directly from them into the US, (3) bringing money inherited upon death into the US.
This is an estate question , my family has a family llc . opened
this is an estate question , my family has a family llc . opened in 2006 . original membership 40/40/20 myself, my sister, my father . about 4 months ago my dad gifted his 20% of the llc to a gst trust with my sister and i beneficiaries . there is approx 2 million dollars in the llc now . his estate will be over the 5.4 mil Federal estate exemption. i understand about the fair market value discount on the llc considered by the IRS on the shares of the llc could be up to 30% . what i am struggling with is how this LLC counts against his 5.4 mil gift ot estate exemption . the shares are ow my sister and i only and only 20% was an actual gift ? does the whole value of the family LLC minus the FMV discount count against the 5.4 mil. if so why if the LLC is owned by my sister an i ? is it because the shares of the LLC were considered a gift ? help un confuse me thank you !
Can u explain #2) Taxable gain? That's good ?
Can u explain #2) Taxable gain? That's good for her? ....why?..... Is this what happens after a death occurs(taxable gain)?
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