We Get Questions…
by Mark Nestmann: Why
Offshore Investors Are Like Osama bin Laden
was going through some blog archives and picked out some of the
most interesting questions Ive received. Hope that you enjoy,
and profit from the answers!
Q. Are there
any pitfalls to be aware of as a dual citizen of the United States
and Canada? Plus, any recommendations for residence?
the United States and Canada recognize dual nationality so you wont
be required to choose between U.S. and Canadian citizenship. However,
dual citizenship wont eliminate your obligation to comply
with U.S. tax filing and reporting requirements. These apply to
all U.S. citizens, no matter where they live or whatever additional
nationalities they possess. Also, if you have children, Uncle Sam
may require them to serve in the U.S. military for whatever future
wars our esteemed leadership wishes to involve us.
As for residence,
a lot depends on whether you have income coming from sources in
the United States or Canada. If you do, you may want to reside in
a country with a tax treaty with one or both countries so as to
benefit from reduced withholding taxes. You need to review the terms
of the actual treaty, though, to see how the income will be taxed
in your new country of residence.
Q. My brother-in-law
in Japan has purchased seven bars of silver (140 oz in all) in the
United States. He wants us to bring them from the United States
to Japan when we visit him later this month. What preparations do
I need to make in advance in order to avoid any complications at
the U.S. border?
bars are not monetary instruments. That means that when
you depart the United States, they need not be declared on Treasury
Form 105, Report of International Transportation of Currency
or Monetary Instruments. However, you will need to complete
Census Bureau Form 7525-V, Shippers Export Declaration.
Form 7525-V is required only for exported commodities with a value
exceeding $2,500. At current silver prices of $35/oz., the bars
would be worth well over this reporting threshold.
also be reporting formalities, and possibly customs duties payable,
when you enter Japan. I am not familiar with these rules. You should
contact Japanese customs authorities before you leave to determine
how they deal with silver imports.
you should also bring proof of ownership of the silver bars with
you. Since your brother-in-law purchased them it may also be helpful
to have a letter from him authorizing you to transport them to Japan
on his behalf.
Q. I have a
GoldMoney account. Is this reportable as a foreign account?
it is reportable. In February 2011, the Treasury Department issued
regulations that require U.S. persons to report an account
with a person that is in the business of accepting deposits as a
financial agency. The rules are effective for 2010 and thereafter.
A financial agency is a person acting for a person as a financial
institution, bailee, depository trustee, or agent, or acting in
a similar way related to money, credit, securities, gold, or in
a transaction in money, credit, securities, or gold. Basically,
what the financial agency obligation means is that if you entrust
a foreign person or entity not just a bank with your
money, securities, or gold, the U.S. Treasury wants to know about
it. For instance, if you buy gold overseas and pay a custodian a
fee for safekeeping it, that custodian is probably acting as a financial
agency. This is part of what GoldMoney does, and for this reason
I would consider the account reportable on Schedule B of your personal
tax return and on Treasury Form 90-22.1.
Q. If I give
up U.S. citizenship and later change my mind, can I get my passport
of U.S. citizenship is generally irrevocable. However, you could
apply for residence in the United States like any other foreigner
and potentially acquire permanent residence and eventually, a passport.
I personally know someone who expatriated, and later successfully
applied for a green card. He is now living in the United States
and after five years permanent residence will be eligible to reacquire
U.S. citizenship and passport.
I also have
a client who lost his U.S. nationality twice! He lost it the first
time involuntarily after serving in the military forces of a foreign
country, and reacquired it once he was discharged from that military.
Many years later, he voluntarily expatriated a second time.
questions coming! And if you dont want to wait for me to answer
them, I recommend you consult my newly updated book, The Lifeboat
Strategy, for the answers. Click here
for more information!
with permission from The Sovereign
Mark Nestmann is a journalist with more than 20
years of investigative experience and is a charter member of The
Sovereign Society’s Council of Experts. He has authored over a dozen
books and many additional reports on wealth preservation, privacy
and offshore investing. Mark serves as president of his own international
consulting firm, The Nestmann Group, Ltd. The Nestmann Group provides
international wealth preservation services for high-net worth individuals.
Mark is an Associate Member of the American Bar Association (member
of subcommittee on Foreign Activities of U.S. Taxpayers, Committee
on Taxation) and member of the Society of Professional Journalists.
In 2005, he was awarded a Masters of Laws (LL.M) degree in international
tax law at the Vienna (Austria) University of Economics and Business
© 2011 Mark
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