American expat tax planning

By Peggy Creveling, CFA, and Chad Creveling, CFA

This article is for general informational purposes only and is not intended as specific legal or tax advice. Please consult your legal or tax advisor for advice relevant to your situation.

At this time of year, many Americans living overseas are collecting the various documents needed to file their 2018 U.S. taxes. This year, in addition to the sometimes obscure U.S. tax forms that U.S. citizens living overseas are required to file, expats need to be aware of a number of changes from the Tax Cuts and Jobs Act (TCJA) enacted at the end of 2017.

By Peggy Creveling, CFA, and Chad Creveling, CFA

This article originally appeared in the American Chamber of Commerce of Thailand (AMCHAM)’s T-AB Magazine 5/2016 and has been shared with permission.

For many employed expats in Thailand, Thai Long-Term Equity Funds (LTFs) and Retirement Mutual Funds (RMFs) can provide worthwhile Thai tax benefits. This article discusses the merits of both types of investments, and highlights an important 2016 change to the LTF holding period. For a period of time U.S. citizens were unable to invest in LTFs and RMFs due to FATCA legislation; however, some Thai asset management companies are again accepting U.S. citizens.

By Peggy Creveling, CFA and Chad Creveling, CFA

This article is for general information purposes only and is not intended as specific tax advice. Please consult your tax advisor for advice relevant to your situation.

If you're an American working overseas who's a contractor, sole proprietor, or small business owner, you may think that there are few U.S. tax-advantaged choices available to help you save for retirement. Those expats not working for U.S. firms are often unaware that they could be eligible to contribute to U.S. tax-advantaged retirement plans. Depending on your situation, however, there may be several alternatives from which to choose. The solo 401(k)―sometimes referred to as the single 401(k) or individual 401(k)―is one that can be a powerful retirement savings tool for some U.S. expats who are self-employed or who own a small business.

By Chad Creveling, CFA and Peggy Creveling, CFA

While most expat Americans are aware of the Foreign Account Tax Compliance Act (FATCA) and the increased reporting requirements for foreign holdings, many are still unaware of the IRS’s particularly harsh tax treatment of foreign-incorporated investments such as overseas mutual funds and pension plans. As a direct consequence of increased reporting from FATCA, we are also likely to see more rigorous enforcement of the IRS’s Passive Foreign Investment Corporation (PFIC) rules. This article is intended to help you understand PFIC rules so that you can minimize the U.S. tax consequences of investing overseas and avoid penalties, both now and over the long run.