How to avoid taxes reasonably when immigrating to the United States
Reasonable tax avoidance and protection of personal assets are normal in foreign countries. However, in the face of the perfection and complexity of tax laws in some immigrant countries, how to avoid taxes is also a difficult problem for new immigrants. Taking the United States as an example, WTO immigration experts will introduce you to five ways for new immigrants to avoid taxes. Strategy 1: Two Ways to Avoid Inheritance Tax Americans mainly use two methods to avoid inheritance tax, one is the shel-tertrust, and the other is the family limited partnership. Shield trust effectively avoids the uncertainty of who dies first. It sets up a trust for each husband and wife, and part of the assets of which will be transferred to the children's trust. In this way, the tax reduction for both husband and wife will not be wasted. A family that establishes a family business can set up a family limited partnership, preferably in middle age, with parents as general partners, and then transfer assets to children's accounts little by little. Finally, all children have a small part. For Chinese families who like to buy commercial properties, it is very suitable to use family limited partnership to transfer assets. Strategy 2: Before emigration, the principle of cashing in the book value in the United States is to tax only the realized income, that is, the property is taxed only when it is bought, sold or transferred. If the property has not been transferred, the value-added tax is not levied on the book. There are many unrealized cases of book appreciation, such as the price increase of real estate, the appreciation of stocks, bonds and jewelry. New immigrants are likely to encounter the problem of property appreciation tax in the United States when dealing with their property. Because when you become an American resident, you don't have to pay taxes on the property brought in from abroad, the simplest way is to cash in the income that has not been realized by book appreciation, such as selling stocks and transferring real estate. After obtaining the identity, you can use your cash to invest in new stocks and real estate. In this way, you don't have to pay taxes on these value-added properties. On the other hand, if you have a loss-making investment, you don't have to sell it in a hurry. You can wait until you get a green card, so you can get a tax credit later. Strategy 3: Working overseas, the United States is tax-free. For immigrants, green cards, citizenship and taxes are contradictory. American immigration law stipulates that green card holders must stay in the United States for more than half a year, otherwise their green cards may be confiscated. However, if there are reasonable reasons why you can't return to the United States within six months, you can apply for a return permit (white paper), and the validity period of the return permit is 2 years. In addition, naturalized American citizens must stay in the United States for more than two and a half years within five years of holding a green card, and they must file tax returns honestly. However, more and more new immigrants return to work in China after getting green cards, and only report to the United States symbolically every year, nicknamed "trapeze". "trapeze" overseas labor income is tax-free. However, the tax law stipulates that you can only enjoy this allowance if you stay overseas for more than 330 days in a year, that is, you can only stay in the United States for 35 days a year. This is in contradiction with the condition that the immigration law stipulates that you can stay in the United States for half a year before you can keep your green card. However, if you apply for a US Re-entry Permit (White Paper), you can legally stay overseas for 1-2 years by combining the green card with the US Re-entry Permit, and your green card will not be confiscated when you re-enter the customs. It not only meets the requirements of immigration law, but also enjoys a certain amount of tax exemption stipulated by tax law. Strategy 4: Overseas accounts are located in "tax havens". According to the Bank Secrecy Law of the United States, anyone who has bank accounts, brokerage accounts, * * * mutual funds, unit trust funds and other financial accounts overseas, and the accumulated funds in these accounts exceed 1 10,000 US dollars, must fill in the foreign bank and financial rights form TDF 90-22.1(Reporter of However, if the account is located in Puerto Rico, Northern Mariana Islands, American Guam, Samoa and Virgin Islands and other world-famous "tax havens", you can enjoy tax-free treatment. Strategy 5: Make good use of gifts. In the United States, a person can only give others1million dollars in his life, and each person can give 1. 1 million dollars every year. If the gift in 1 year exceeds this amount, you must report to the tax bureau, or you can choose not to pay the gift tax, that is, deduct the gift from the future1500,000 estate allowance, but let the government know. But gifts sometimes pay more taxes. For example, a pair of parents gave their children a house with a purchase price of100000, and now the market value of the house is 700000. Two years later, I sold the house and got10 million dollars. However, the cost price of this house is still100,000 USD, and if the children gain 900,000 USD, they have to pay capital income tax. Because it is a gift, the base is calculated from the original purchase price. If other methods are adopted, the tax amount will be different. For example, parents don't give it now, but as an inheritance after death. If the market price of the house is1million dollars, the base of the house is1million dollars. If the children are sold after living for 2 years, they will get1200,000 US dollars, and the value-added US$ 200,000 will be taxed. In the case of inheritance, the base is the market price at the time of the death of the asset owner.