Archive | Domicile

Rate and Calculation of Tax

July 08, 2013  |   Posted by :   |   Domicile   |   0 Comments

Rates. For nonresident alien decedents dying after November 10, 1988 (the date of enactment of the Technical and Miscellaneous Revenue Act of 1988 (“TAMRA”) the estate tax rates are the same as for U.S. citizens. Credits available to offset the tax include: (a) IRC § 2102(b): Unified credit of $13,000 is equal to an exemption […]

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Property Subject to Tax

July 08, 2013  |   Posted by :   |   Domicile   |   0 Comments

U.S. Property for estate tax purposes includes: (a) Real property located in the United States; (b) Tangible personal property located in the United States (except works of art on loan for an exhibition); (c) Stock of domestic corporations; (d) Debt obligations of U.S. persons except obligations which qualify as “portfolio interest” obligations under § 871(h)(4). […]

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U.S. Estate, Gift, and Generation Skipping Transfer Taxation of Non-Resident Aliens

July 07, 2013  |   Posted by :   |   Domicile   |   0 Comments

U.S. Estate Tax 1. Taxation based on citizenship and residence. 1.1 U.S. citizens and residents are subject to estate tax on all interests in property wherever located owned or controlled at death. 1.2 Individuals who are neither U.S. residents nor U.S. citizens (“non-resident aliens”) are only subject to U.S. estate tax on: (a) Interests in […]

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Applicability of U.S. Transfer Tax to Nonresident Aliens

July 07, 2013  |   Posted by :   |   Domicile   |   0 Comments

Scope of U.S. Estate Taxation U.S. estate and gift taxation applies to non-resident alien transferors who have property located in the United States (referred to here as foreign clients) in addition to citizens and residents of the United States. For nonresident aliens, the gross amount subject to U.S. estate tax can be determined by reference […]

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U.S. Gift Tax

July 06, 2013  |   Posted by :   |   Domicile   |   0 Comments

U.S. Gift Tax 1. U.S. citizens and residents are subject to gift tax on all direct or indirect transfers of property, wherever located, for less than full and adequate consideration. 2. Non-resident aliens are subject to gift tax only on gifts of tangible personal property and real property located in the United States. IRC § […]

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Double Taxation (Domicile) — Tax Treaties

July 06, 2013  |   Posted by :   |   Domicile   |   0 Comments

In many instances the adverse tax consequences of a determination of double domicile have been alleviated by tax treaties between the contending jurisdictions. U.S. estate tax treaties vary. They generally provide that in the event the contracting parties both claim the decedent as a domiciliary for estate tax purposes, a credit will be given against […]

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Joint ownership of property

July 05, 2013  |   Posted by :   |   Domicile   |   0 Comments

Joint ownership of property. Property held in the United States may have been acquired with the proceeds of joint funds, but the technical property ownership may only be reflected in the name of an individual foreign client. For example, property held in the United States may have been acquired with foreign-source funds that really constitute […]

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Identifying Property Economically Owned by the Nonresident Alien Decedent

July 05, 2013  |   Posted by :   |   Domicile   |   0 Comments

Nominal but not substantive ownership. The foreign client may be only the nominal owner and may hold the property on behalf of some other person. For example, the foreign client could hold the U.S. property as an agent for other parties, including for a corporation, or the foreign client could hold the property in some […]

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Property of Nonresident Alien Treated as Located in the United States

July 03, 2013  |   Posted by :   |   Domicile   |   0 Comments

Property Situs Rules – U.S. Estate Tax Treatment For U.S. estate tax purposes, the gross estate of a deceased nonresident alien is that part of his estate that at the time of death is deemed located in the United States. (IRC § 2103.) The primary rules for determining the situs of specific assets are included in […]

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Domicile v. Residency

July 03, 2013  |   Posted by :   |   Domicile   |   0 Comments

1. An Individual can have more than one place of residency 2. An Individual can have only a single domicile at one time 3. In Elkins v. Moreno (435 U.S. 647 (1978)) the IRS revoked its prior ruling and held that a non-immigrant alien who entered the United States with a G-4 Visa, formed the […]

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