Last week, my friend suddenly called to say that one of his rich relatives from Shanghai was going to immigrate to the United States, but I heard that the taxes in the United States were very high and complicated, and I wanted to come over to talk to me about the fiscal and taxation issues that should be considered when immigrating while people were in new york. Because he will return to China the next day, see if I have time to meet him that day. I quickly rearranged my schedule and set aside an hour for him ... After this Mr. Liu sat in my office, the first sentence began to worry about whether he had to pay a lot of American taxes on his domestic assets after immigrating to the United States, and what methods could be avoided. I told him about the taxation of different types of assets in the Chinese and American tax laws, and asked about his domestic industries, current asset portfolio and his expected lifestyle in the future. After understanding, I thought that if he made some asset adjustments and arrangements in response to American taxes before immigrating, his identity would be far less than he expected. Since this summer, there has been an endless stream of rich people from China who are interested in immigrating to the United States, taking advantage of the summer vacation to take their children to explore new york first, and come to my office to consult on immigration investment and property tax planning. Among them, there are gold-collar executives, small and medium-sized business owners and even billionaires with huge careers from all over the country: the same anxiety begins, and then it continues with a little relief ... However, there are also some people who have not made any asset adjustments before immigrating, and only after settling in the United States suddenly find that some property with substantial value-added will be heavily taxed in the United States. In addition, it may be because we can't find professional consulting services that are truly proficient in fiscal and taxation between China and the United States in China, and many people have misunderstood the tax differences between the two countries and produced many ridiculous ideas. Once, a customer from Northeast China asked him whether most of his bank deposits in China were turned over to the US government after emigration, and he was greatly relieved when he learned that only the interest was taxed. In fact, the tax differences between China and the United States are really great, and the tax methods and regulations of each asset type are different. For example, the bank interest tax in China is generally 5%, and it will be automatically deducted from everyone's bank account, while the bank interest in the United States is also subject to tax, but this tax will not be automatically deducted. Instead, every year when people file tax returns, they will add the bank interest to their own income to calculate the tax rate to be paid, so the final tax to be paid for the same interest will vary greatly depending on the total income of individuals. Another example is the property that Chinese people like. If it is held in China for more than five years, even if it appreciates a lot, the tax rate is basically low when it is sold, which is quite simple to calculate. However, the calculation of real estate value-added tax in the United States is very complicated. Individuals who own their own houses for more than five years can have a tax allowance of $25,, while couples can have a tax allowance of $5,. The excess depends on the actual increase and then the federal and local state and city tax rates are calculated separately. For a couple living in new york, if they want to sell a house that they bought four years ago and now live in, and the value of it has increased by 5, dollars, they will not enjoy the tax allowance of 5, dollars, and the value of this 5, dollars will be taxed at a rate of more than 3%, which means that their after-tax profits will be reduced by more than 1, dollars. In addition, if the house is used for investment and rental, the algorithm will be different. From the above two different asset classes, you can see the great differences between Chinese and American tax laws. Generally speaking, the tax provisions in the United States are numerous and complicated in Qian Qian, and the enforcement ability of the IRS is extremely high, which is far from the relatively simple tax laws and law enforcement methods that Chinese people are used to, so we can't take any chances. However, there are many tax deductible or even tax-free items in the American tax law, such as medical expenses of self-employed, child allowance, and even past stock losses, which can also be used to deduct taxes. In addition, some asset types, such as insurance annuity products, can greatly reduce or even eliminate the need to pay taxes through clever design. Therefore, if the overall assets can be arranged and adjusted in advance according to the American tax law before immigration, the possibility of heavy property losses caused by the strong impact of American tax after changing identity can be avoided, and the American tax law can be used to reduce taxes for the adjusted asset portfolio. Skillful transnational asset allocation can even make the total assets continue to be effectively enlarged and preserved without increasing the original domestic tax. The answer is because he has extremely professional financial management and tax/law experts behind him to advise him and use various favorable financial tools, tax and legal provisions to achieve the purpose of saving taxes and preserving and increasing assets. The United States is such a country that relies on professionals! (The author is a senior partner of Sequoia Wealth Planning in the United States and a certified wealth planner in the United States. E-mail: smak@eswpinc.com) (Editor: Gu Beibei) Author: Mai Huiqi from Caishang)