2017 Tax Reform

By Mary Beth Lougen
Expat Tax Tools

On December 22, 2017, President Trump signed the Tax Reform and Jobs Act of 2017, which will provide the first significant reform of the U.S. tax code since 1986.

If you are a US person living outside the US, it is not likely you will be impacted in any meaningful way this tax season.

If you are residing in the US and itemize deductions, you have an opportunity to act now to lower your taxes this year and take advantage of deductions that will be disallowed in 2018 (see the section on property taxes below). Most of the changes will affect your 2018 tax returns, which leaves precious little time to act on the few provisions that can benefit you in 2017. Please read below and see the attached pdf for some of the key changes.

If you are a nonresident alien filing Form 1040-NR, you should expect to pay more tax starting in 2018 to the US due to the restriction on state and local tax deductions and the repeal of personal exemptions.

Download the CCH handout in PDF format.

Read the full article at American Expat Tax Services.

Consider putting your U.S. home in a cross-border trust

By TESS KALINOWSKI
Real Estate Reporter

It could mean tax savings for your loved ones if you die, said lawyer David Altro, a cross-border specialist.

Dan and Colette Craig have owned a condo in Cape Coral, Fla., for almost a decade. They know better than to talk politics with the neighbours when they visit.

“We tend to avoid conversations with any U.S. folks regarding (U.S. President Donald) Trump. We don’t initiate that. From an outsider looking in, you really don’t know what you’re talking about,” says Dan.

Politics have nothing to do with the Craigs’ enjoyment of their Florida home and they dream of spending more time there in the future…

Read the full article at thestar.com.

Now That The GOP Tax Bill Is Approved, The IRS Gets Busy

By Brian Naylor
NPR

Republicans in Congress are promising that their tax bill will create jobs. One place where we know it’s going to create a lot of work is at the IRS.

That agency will have to figure out how to interpret and implement the hundreds of pages of changes to the tax code that were just passed, at a time when it is already struggling with budget cuts and staff reductions.

The Trump administration says it’s already working with the IRS to update tax forms and withholding tables, promising that most taxpayers will notice a difference in their pay stubs by February…

Read the full article at www.npr.org.

Will your 2018 taxes fit on a postcard? Probably not.

By JANE C. TIMM
NBC News

To hear Republicans tell it, filing your taxes under the new law will be a revelation.

“We’re making it so simple that almost nine out of 10 taxpayers can do their taxes on a form like a postcard,” House Speaker Paul Ryan told NBC News on Wednesday after GOP lawmakers passed a final version of their bill.

Ryan’s promise comes a week after Trump boasted at the White House that one of the families there promoting the bill would “be able to file their taxes on a single, little beautiful sheet of paper.” A month earlier, Trump kissed a prop postcard mocked up to look like a tax return with just a handful of questions.

Read the full article at nbcnews.com.

Fallout from allegations of tea party targeting hamper IRS oversight of nonprofits

By Robert O'Harrow Jr.
WashingtonPost

Years of conservative attacks on the Internal Revenue Service have greatly diminished the ability of agency regulators to oversee political activity by charities and other nonprofits, documents and interviews show.

The fall in oversight, a byproduct of repeated cuts to the IRS budget, comes at a time when the number of charities is reaching a historic high and they are becoming more partisan and financially complex.

It represents a success for conservatives who have long sought to scale back the IRS and shrink the federal government. They capitalized on revelations in 2013 that IRS officials focused inappropriately on tea party and other conservative groups based on their names and policy positions, rather than on their political activity, in assessing their applications for tax-exempt status. Among conservatives, the episode has come to be known as the “IRS targeting scandal.”

Read the full article at washingtonpost.com.

Bitcoin investors beware: The IRS wants its cut and you may not know it

By Sarah O'Brien
CNBC

  • Bitcoin and its brethren are viewed as property, not currency, by the IRS.
  • A U.S. court has ordered Coinbase to turn over identifying information on 14,000 accounts.
  • The onus is on investors to report gains to the IRS.

Roger McNamee: Here’s what matters about bitcoin  12:14 PM ET Wed, 29 Nov 2017 | 03:21
If you’re a bitcoin investor and have cashed in on your gains — or made purchases using the cryptocurrency — don’t forget the Internal Revenue Service is entitled to a piece of the action.

The value of one bitcoin has surged this year to more than $9,000 as of Thursday morning from $997 (and up from less than a dollar in 2010). There’s a good chance if you have cashed out or paid for anything using it, you have capital gains to report to the IRS…

Read the full article at cnbc.com.