PRE-IMMIGRATION U.S. TAX PLANNING
Tax Solutions for Clients Relocating to the U.S.
For foreign nationals looking to relocate to the U.S., Dilendorf Law Firm designs pre-immigration planning structures and solutions that substantially minimize U.S. taxation.
Given the worldwide reach of the U.S. income and transfer-tax systems, timing a non-resident’s status is essential.
Once an individual becomes a U.S. resident for U.S. tax purposes, he or she will be exposed to U.S. income taxes on worldwide income and estate and gifts taxes on worldwide assets.
With proper planning, client’s exposure to these taxes can be minimized.
Years of representing foreign individuals in connection with U.S. business, tax and immigration matters allowed Dilendorf Law Firm to develop various pre-immigration tax planning solutions that allow our clients to significantly reduce exposure to U.S. taxes.
Represented a leading global gold retailer in connection with planned relocation to the U.S. and advised on corporate restructuring, asset restructuring and tax optimization of worldwide operations
Represented a client in connection with planned relocation to the US and designed a two-tier Maltese operating structure in order to defer U.S. income taxation and ensure preferred dividend distribution rates
Advised a foreign client on establishing an irrevocable trust structure to purchase and hold $12.5 million in Manhattan real estate for the benefit of the investor’s family members prior to U.S. tax residency
Minimizing U.S. Income Taxation:
- Exploring strategies to benefit from the step-up in basis of assets to their fair market value so that only appreciation will be taxable once client becomes a U.S. tax resident
- Accelerating income and accelerating recognition on account receivables prior to becoming a U.S. tax resident
- Accelerating gain in appreciated assets (real estate assets, artwork, corporate stocks, options, etc.) prior to becoming a U.S. tax resident
- Deferring losses until after a client becomes a U.S. tax resident
- Disposing or restructuring foreign corporations with passive income to avoid “Subpart F” and other applicable regimes
- Planning with trusts as a non-resident can make irrevocable gifts to non-U.S. persons in trusts with proper structuring and avoid U.S. income taxes on future income earned by the trust and U.S. gift and estate taxes on transfer of such assets
Minimizing Exposure to the U.S. Gift & Estate Taxation:
- Planning with irrevocable discretionary U.S. trusts for the benefit of taxpayer or family members to ensure that assets will not be subject to U.S. estate tax on the taxpayer’s death (life insurance could be purchased to minimize income tax as well)
- Planning with foreign irrevocable trusts
- Planning with gifts to U.S. persons and between spouses prior to becoming U.S. tax resident
Pre-Immigration Tax Planning Resources:
- Pre-Immigration U.S. Tax Planning for High-Net-Worth Individuals & Families
- Introduction to Residency Under U.S. Tax Law
- IRS: Taxation of U.S. Residents’ Worldwide Income
- Reporting Foreign Income: Eight Tax Tips from the IRS
- Pre-Immigration Tax Planning: Income, Estate, and Gift Tax Planning for the Nonresident Alien Moving to the United States
- Taxation of U.S. Resident Aliens
- FAQs About International Individual Tax Matters
- Cross-Border Taxation of Stock Options
- United States Income Tax Treaties
- Critical Analysis of the Immigrant Investor Visa