Real Tax Questions, Expert Answers
Get answers to your foreign-owned LLC tax questions from ForeignLLCTax. Every answer includes IRS source citations and step-by-step guidance.
Why do my Forms 8805 go behind the return while my 1042-S forms go on the front of Form 1040-NR?
I am from India and my Form 1040-NR this year includes partnership withholding on Form 8805 and also platform withholding on Forms 1042-S. The package is not huge, but the assembly instructions feel w...
Our C corporation had under $250,000 of receipts and assets. Can we really skip Schedule L and M-1, or is there another catch?
I run a small Delaware C corporation owned from Germany. We had about $172,000 of receipts and finished the year with around $141,000 of total assets. The return itself is otherwise straightforward an...
Tax Return vs Information Return: What's the Difference? (Ep. 10)
I'm new to U.S. taxes and need to understand: Tax Return vs Information Return: What's the Difference?. Can someone explain this in straightforward terms?
I had ECI but no U.S. wages at all. Is June 15 really the correct due date for my Form 1040-NR?
I am based in South Africa and my only U.S. tax issue is effectively connected business income from services. I had no W-2 wages, no payroll withholding, and no employee status with any U.S. company. ...
I own more than 10% of a foreign partnership, but another U.S. partner is clearly Category 1. Does that mean I am not a Category 2 filer after all?
I am a U.S. investor in a foreign partnership operating in Portugal. My direct interest is about 14%, while another U.S. investor appears to control more than 50% together with related U.S. persons. W...
How exactly does FIRPTA work when my single-member LLC sells property? Who withholds?
I own a single-member LLC in Delaware that holds a rental house in Arizona. I'm a non-resident alien from Australia. I've accepted an offer and we're heading to closing next month. The buyer's agent i...
I'm a U.S. person with a 60% interest in a foreign partnership. Do I need Form 8865?
I'm a U.S. citizen and I have a 60% interest in a partnership organized in Germany. The partnership operates a consulting business there. I've been reporting my share of income on my Form 1040 but was...
Why Tax Filing Requirements Matter: Every U.S. Taxpayer Should Know (Ep. 1)
I'm new to U.S. taxes and need to understand: Why Tax Filing Requirements Matter: Every U.S. Taxpayer Should Know. Can someone explain this in straightforward terms?
Common AMT Triggers: Accelerated Depreciation Explained (Ep. 18)
I'm worried about the Alternative Minimum Tax: Common AMT Triggers: Accelerated Depreciation Explained. How do I know if this affects me and what can I do about it?
Head of Household Decision Tree (Ep. 78)
I need help with my filing status: Head of Household Decision Tree. What are the rules and how do I determine what applies to my situation?
Does holding U.S. real estate through an LLC protect me from FIRPTA? My attorney said it would.
I'm a Brazilian citizen looking to buy rental properties in Miami. My attorney in Brazil recommended I set up a Wyoming LLC to hold the properties, saying it would "protect" me from FIRPTA. But I've b...
Form 8938 FATCA: Detailed Filing Requirements and Thresholds (Ep. 40)
I have income from outside the U.S. and need guidance on: Form 8938 FATCA: Detailed Filing Requirements and Thresholds. What are my reporting obligations and how do I stay compliant?
Stripe Atlas vs manual LLC formation — is the $500 worth it for the banking setup?
I'm a software developer in India planning to sell a SaaS product to U.S. customers. Stripe Atlas charges $500 to form an LLC in Delaware and includes a Mercury bank account, Stripe account, and other...
What Is the Alternative Minimum Tax (AMT)? Complete Explanation (Ep. 15)
I'm worried about the Alternative Minimum Tax: What Is the Alternative Minimum Tax ? Complete Explanation. How do I know if this affects me and what can I do about it?
IRC 6015(f) Equitable Relief Part 1 (Ep. 65)
My spouse and I have a tax issue and I need to understand: IRC 6015 Equitable Relief Part 1. What relief options are available and how do I qualify?
Can my foreign-owned LLC invest in a Bitcoin ETF? What are the tax implications?
Now that spot Bitcoin ETFs are approved in the U.S., I'm thinking of buying shares through my foreign-owned LLC's brokerage account instead of holding actual Bitcoin. I figure an ETF would simplify th...
MFS Calculation with Medical Bills (Ep. 70)
I need help with my filing status: MFS Calculation with Medical Bills. What are the rules and how do I determine what applies to my situation?
QBI Deduction for REIT and PTP Income: Negative Carryover Rules (Ep. 33)
I need help with the Qualified Business Income deduction: QBI Deduction for REIT and PTP Income: Negative Carryover Rules. How does it work and what are the carryover rules?
How do I get an EIN for my foreign-owned LLC if I don't have a Social Security Number?
I just formed an LLC in Delaware and I need an EIN to open a bank account and file taxes. But I'm not a U.S. citizen or resident — I don't have an SSN or ITIN. The IRS online application asks for an S...
How do I calculate FDII for my U.S. corporation that has both domestic and foreign customers?
My U.S. C-corp has $10 million in total revenue — $6 million from foreign customers and $4 million from domestic customers. Our total deductions are $7 million, and we have about $2 million in depreci...
What is IRC 1059A and how does it limit the tax basis of property I import through my U.S. LLC from my foreign company?
I'm a Turkish business owner. My company in Turkey manufactures furniture and my U.S. LLC imports it for resale. My accountant warned me about IRC 1059A — he said there's a limit on the cost basis I c...
How do I report crypto income in my LLC?
My LLC received payments in Bitcoin and Ethereum. How do I report this on Form 5472? Is crypto considered a reportable transaction?
What should an AML compliance program look like for a foreign-owned LLC that is classified as an MSB?
My foreign-owned LLC provides currency exchange services for tourists and has been classified as a Money Services Business. FinCEN says I need a written AML compliance program. I am a small operation ...
Tax treaty between US and UK — does it affect my Form 5472?
I'm a UK citizen with a US LLC. Someone mentioned tax treaties might reduce my filing obligations. Does the US-UK tax treaty change anything about Form 5472?
Can a multi-tier LLC structure reduce NRA estate tax on U.S. real estate?
I'm a non-resident alien from Singapore and I'm buying U.S. commercial real estate worth $5 million. My advisor suggested a multi-tier structure: a Singapore holding company owns a U.S. LLC, which own...
What is Form 3520-A and when does a foreign trust need to file it?
My family has a trust set up in the UK that I'm a beneficiary of. I've been filing Form 3520 to report distributions I receive, but my tax advisor mentioned the trust itself might need to file Form 35...
What AML rules apply when my foreign-owned LLC buys or sells real estate in the U.S.?
I am a Chinese citizen with a U.S. LLC and I want to invest in residential rental properties in California. I plan to buy properties through my LLC using funds from my personal savings in China. I hav...
Can foreign LLC owners use Section 1031 like-kind exchanges?
My US LLC owns commercial real estate and I am considering exchanging it for another property rather than selling outright. I have heard that Section 1031 like-kind exchanges allow you to defer capita...
What Is a CP2000 Notice? IRS Underreported Income Letter Explained (Ep. 5)
I received a CP2000 notice from the IRS: What Is a CP2000 Notice? IRS Underreported Income Letter Explained. What should I do and how do I respond properly?
Do interest limitation rules apply to a foreign-owned single-member LLC with intercompany loans?
My foreign company lent money to my U.S. LLC to fund operations. The LLC pays interest back to my foreign company. Does the Section 163(j) interest limitation apply to a disregarded entity LLC? If so,...
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