US Tax Provider

[richsadams]

I'm no tax advisor, and the situation with the US tax code is pretty horrendous, but looking at Section 965 it shouldn't be too painful if you don't already have any established foreign corporate presence. If you were considering being self-employed the situation could be worse if you're not operating under the construct of an LLC.

What you definitely want to ask your tax advisor about is hazards with the PFIC (Passive Foreign Investment Company), Form 8621, which can affect your filing and tax liability in the US if you have any "passive foreign investments," which could be as simple as a Kiwisaver or other PIE. It's a massively costly and time consuming pain.

But, again, I'm not a tax advisor.

Good info, thanks!

[richsadams]

Good Morning All!

Funnily enough Diallta, that is one of the things I'm meeting with Dave about next week! I sold my fidelity investment last year and have put it into a MILFORD fund here. Dave has discussed with me that I have a PFIC, so now I'll be getting some advice from him on how to mitigate the issue.

He tells me that an article about PFICs is scheduled on their website some time later this month. But I'll update you all on progress and how the meeting goes next week.

Cheers

Much appreciated Brian. Looking forward to your "free" advice. Kidding. Whatever you can share will be helpful that's for sure though.

Thanks again!

[bcarter77]

Howdy Y'all!

I've had my meeting with Dave today. I will say, I was impressed, but also a little daunted. I didn't realise how much of a mess you can get yourself in over here. We discussed PFICS and Form 8621, it sounds like a real nightmare. Lucky for me, Dave explained that my MILFORD investment can be reported in a less complex way (Mark to Market I think), because it will only be reported on an up to date return instead of a delinquient one.

We also went over my IRA and withdrawal. He agreed maybe it was best to take advantage of a transition period in NZ where the IRA can be brought over tax free in the first four years. He suggest I wait until year 3 to withdraw, just incase we move back home. I'll have the early withdrawal penalty right now. I have another IRA, but this is from when I worked in the Police Dept. so it won't be taxed in NZ anyway.

Overall, I've been really impressed so far.

They gave me a 15 page guide on working with them, which explains everything really well. Communication has been quick, and overall I'm very happy with US Global Tax so far

[Juniper]

Thanks for reporting back!

[richsadams]

Howdy Y'all!

I've had my meeting with Dave today. I will say, I was impressed, but also a little daunted. I didn't realise how much of a mess you can get yourself in over here. We discussed PFICS and Form 8621, it sounds like a real nightmare. Lucky for me, Dave explained that my MILFORD investment can be reported in a less complex way (Mark to Market I think), because it will only be reported on an up to date return instead of a delinquient one.

We also went over my IRA and withdrawal. He agreed maybe it was best to take advantage of a transition period in NZ where the IRA can be brought over tax free in the first four years. He suggest I wait until year 3 to withdraw, just incase we move back home. I'll have the early withdrawal penalty right now. I have another IRA, but this is from when I worked in the Police Dept. so it won't be taxed in NZ anyway.

Overall, I've been really impressed so far.

They gave me a 15 page guide on working with them, which explains everything really well. Communication has been quick, and overall I'm very happy with US Global Tax so far

Awesome! Thanks so much for the feedback.

Although we lived, worked and owned a business in NZ previously, we're now retired and dealing with a whole other world of "what-ifs". Our laundry list of things to ask is getting longer.

Sounds like these folks know their stuff though so that's a huge step forward for our decision-making process. When the time comes we'll be posting our experience. In the meantime any additional info (from everyone here of course) is always welcome.

Thanks again Brian!

[bcarter77]

Happy New Year all!

Thought I'd come on here and let you all know that I've just had my tax return finished by US Global Tax. They've been really great to work with. I did my usual task of stalling for a while, but once I got them the information they asked for, they got my return complete quick. I've had a few meetings with David now, and he has been really helpful with explaining my return and other advice. I'm happy with the service I've had, a lot better than my old CPA back in the states.

2018 Tax return next, it comes too soon!

[Juniper]

Good to hear!

[richsadams]

Happy New Year all!

Thought I'd come on here and let you all know that I've just had my tax return finished by US Global Tax. They've been really great to work with. I did my usual task of stalling for a while, but once I got them the information they asked for, they got my return complete quick. I've had a few meetings with David now, and he has been really helpful with explaining my return and other advice. I'm happy with the service I've had, a lot better than my old CPA back in the states.

2018 Tax return next, it comes too soon!

Thanks very much for the update! Excellent to hear about your experience with US Global.

Curious, is any of your declared income derived from U.S. investments, retirement accounts, Social Security, that sort of thing? The whole "double taxation" is our biggest concern now. I know we'll need to set up a conference call to talk to David eventually but I'm just wondering if you're in that boat. I don't mind paying appropriate taxes (much), but if we're going to have to pay tax on those sorts of things in the U.S. as well as NZ it could be a deal breaker for us.

TIA!

[bcarter77]

Howdy Rich,

We don’t have any income from our US investments at right now, but we will in future. We had some investments with Vanguard, and sold them out before putting them into NZ investments. There was no tax to pay in NZ on this, but US Global advises me on how these would be treated. Dave explained the main time we’ll pay double tax is on certain NZ investments, and on self-employment (which we don’t do anyway!).

Let me know if you have any other questions.

Cheers all!

[richsadams]

Howdy Rich,

We don’t have any income from our US investments at right now, but we will in future. We had some investments with Vanguard, and sold them out before putting them into NZ investments. There was no tax to pay in NZ on this, but US Global advises me on how these would be treated. Dave explained the main time we’ll pay double tax is on certain NZ investments, and on self-employment (which we don’t do anyway!).

Let me know if you have any other questions.

Cheers all!

Much appreciated and understood.

Since all of our income will be from Social Security and U.S. investments it sounds like we'll need to spend a little time on the phone with Dave to sort things out.

Thanks again and hope all is well!