Mel Whitney

Tax equalization is an employer policy that keeps a US employee on a foreign assignment paying roughly the same income tax they would have paid at home. The company withholds a “hypothetical tax” from the paycheck and then covers the actual US and host-country tax bills the assignment generates – making tax equalization for US e...

The Internal Revenue Service introduced the ...

Form 8288 is the US Withholding Tax Return for Certain Dispositions by Foreign Persons. The withholding agent, typically the buyer of a USRPI, withholds 15% of the amount realized (IRC § 1445(a)) and remits the tax with Form 8288 to the IRS within 20 days of the tra...

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The US foreign tax credit is a nonrefundable credit that can reduce your US tax when you pay qualifying foreign income taxes on foreign-source income that is also subject to US tax. It is calculated on Form 1116 for most filers – though small amounts may qualify for a simpler path. The FTC is nonrefundable: it can reduce your US t...

Foreign rental property depreciation requires the use of ADS – the Alternative Depreciation System, which is one of the two systems within MACRS. Here is what that means in practice: Foreign residential rental property used predominantly outside the US must be depreciated under ADS. ADS uses straight-line deprec...