Looking Before You Leap

Wealthy foreign nationals looking to relocate to the U.S. need to carefully plan the move with the help of advisors because, whether or not the change of address is permanent, it can have significant tax ramifications.

A nonresident alien generally is taxed in the U.S. only with respect to income from a U.S. business, including wages, and other income from U.S. sources. However, when foreigners become U.S. citizens or residents, they are taxed on income from all sources, both domestic and foreign (possibly offset by credits for foreign taxes paid). They may have to pay additional taxes on self-employment and net investment income.

To continue reading Dahlia Doumar and Carl Merino's article in the March 21, 2016 edition of Private Wealth Magazine, please click here.