October 7, 2013

Nonresident Investors

  • ITIN Submission (Individual Taxpayer Identification Number) what is a ITIN     ITIN Frequently Asked Questions
    Nonresidents are not permitted by the U.S. government to have social security numbers. It is therefore necessary to obtain an ITIN (Individual Taxpayer Identification Number), issued by the United States Internal Revenue Service. It is used for tax and all informational reporting (i.e. 1042, 1040NR, etc.). NTA can assist you in obtaining your ITIN.

 

  • Tax planning including entity structure and design
    NTA provides international tax compliance, consulting, and structural planning to closely held US middle-market companies with international operations abroad. Under the IRS Entity Classification regime is an important aspect of NTA’s international tax planning and structuring including the design, formation and operation of intangible property holding companies.

 

  • Quarterly tax reporting for foreign partnerships and nonresidents rental income

 

  • U.S. real estate Investment and effectively connected income
    The basic rule, in regards to rental income, requires 30% withholding of gross rental income. With the proper tax elections and form submission, income will be considered effectively connected to a U.S. business.

 

  • Effectively connected income elections
    Income that is effectively connected with a U.S. trade or business is taxed on a net basis (income minus allowable deductions) at the same federal income tax rates that apply to U.S. citizens or residents (maximum rate currently 35%). Generally, long-term capital gains rates (assuming the assets are held for at least one year) are currently 15% for individuals. The maximum current corporate tax rate is 35%. State and local taxes may increase the effective tax rate on income from a U.S. trade or business.

 

  • Personal Services
    The performance of personal services within the U.S. during the taxable year will generally be treated as a U.S. trade or business, the determination as to whether a nonresident is engaged in a U.S. trade or business is otherwise a subjective test based on the person’s activities.

 

  • Other trade or business income
    Pursuant to most treaties entered into by the U.S., business profits of a nonresident are not subject to U.S. tax unless attributable to a permanent establishment in this country. Generally, a permanent establishment is a fixed place of business (such as an office, factory, mine or place of management) through which a nonresident wholly or partly carries on its activities.Note—a nonresident will generally not be treated as engaged in a U.S. trade or business merely by trading in U.S. stocks, other securities or commodities

 

  • Annual individual, trust, corporation, and Partnership (LLC) Tax Return Preparation
    NTA can help you determine your filing requirements and residency status. We can than prepare the appropriate U.S., state, and local tax return(s) (individual, trust, corporation, and/or partnership (LLC)). We can also prepare estimated income taxes, if applicable.

 

  • Tax Treaties
    We can determine the effects of any possible tax treaty with your country and the United States.NOTE: State Taxation may not apply: If you have taxable income on your federal return, or state income taxes were withheld from your income, you will have to file a return with the state in which you earned the income. Income Tax Exempt States; Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming

 

  • U.S. Estate and Gift Tax Planning
    In addition to income tax planning and compliance, we can provide full services in regard to U.S. estate and gift tax planning. U.S. estate and gift tax liabilities are impacted significantly by the initial organizational structure design.

 

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