Mel Whitney
Articles
What is FIRPTA? A guide for foreign sellers and US buyers
The Foreign Investment in Real Property Tax Act of 1980 sets the rules for foreign people who sell a home in the US. Many sellers wonder, What is FIRPTA? And why does it matter during the sale of their property? So this guide explains it in very easy words. It also shows how a tax obligation works and when FIRPTA exceptions can help. ...
How to avoid paying capital gains tax on inherited property
Inheriting property comes with significant tax implications when you sell. Capital gains tax (CGT) on inherited property can substantially reduce your inheritance value—but several legal strategies can help you minimize or eliminate this tax burden entirely. This guide covers six proven methods to avoid capital gains tax on inherited proper...
FBAR vs. Form 8938: a detailed guide to key differences and filing thresholds
Handling foreign financial exposure as a US expat means getting FBAR and Form 8938 right, not just hoping you’ll be safe. We lay out the firm requirements for each, walk through threshold triggers in straightforward language, and compare both paths so you know your filing strategy. It’s designed for clarity, not tax-jargon overload.</...
Understanding the foreign tax credit: A comprehensive guide for US taxpayers abroad
Years of careful saving abroad can lose their shine when the same income is taxed twice – once overseas and again by the IRS. That moment of frustration has a fix, known as, foreign tax credit, which bridges two tax systems, cutting what you owe to the IRS and protecting the value of your foreign income. From a single dividend to complex ov...
Foreign rental income tax guide: how to report, deduct expenses, and stay compliant
If you earn foreign rental income – whether from a vacation apartment in Spain, a family home in Mexico, or a long-term lease in Canada – you must report it to the Internal Revenue Service (IRS). Many Americans believe that paying taxes in the country where their property is located exempts them from US reporting requirements, but tha...
IRS Form 8840: closer connection exception to avoid US taxation
If you spend significant time in the United States but consider another country your home, you might be surprised to learn that the Internal Revenue Service (IRS) could still classify you as a US tax resident – even without a green card. This often happens to business travelers, seasonal or temporary workers, and individuals who spend long ...