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6 common questions and their answers Hosted on Acast. See acast.com/privacy for more information.

When your clients plan an expansion into the US, they will most likely ask you how to structure this. Should they just trade through their Australian entity? Or set up an entity in the US? Hosted on Acast. See acast.com/privacy for more information.

How you structure into US public and private markets depends on whether you invest for cash flow or capital growth. How should you structure your passive investments in the US? Set up a US entity or trade through your Australian entity? Hosted on Acast. See acast.com/privacy for more information.

There is a sharp distinction between the econcomic nexus for sales tax and the one for state income tax. Hosted on Acast. See acast.com/privacy for more information.

We already mentioned PL 86-272 a number of times in past episodes. Frances Ellington mentioned it and then also Ed Antolin. Today let’s drill deeper because losing the protection that PL 86-272 grants you, can cost you a lot of money in state income taxes. While PL 86-272 is federal law and so applies to all 50 states, let’s discuss the technical a…

Let’s talk about state tax sourcing rules. How do you determine which income is taxable in which state? If you sell into California but also into lots of other states, how do you determine what is taxable in California and what is taxable in other states? That is the question that Ed Antolin of Vallejo Antolin Agarwal Kanter, or in short VAAK in Wa…

In US update 24 Frances Ellington already gave you a first overview of Californian income tax. In this update let’s drill deeper with Ed Antolin of Vallejo Antolin Agarwal Kanter, or in short VAAK in Walnut Creek, California. Just like with federal income tax, you have to distinguish between individual and corporate state income tax. So the first q…

Until June 2018 US sales tax was relatively straight forward. States could only charge you sales tax if you had a physical presence in the state, like a shop or a warehouse. But then came the famous court case South Dakota v Wayfair, and there the Supreme Court decided on the 21st of June 2018 that the states were not limited to physical presence a…

In this episode let’s look at California state taxes. Frances Ellington of GHJ Advisors in Los Angeles will give you a very helpful insight about Calfiornia sales and use tax, income and franchise tax. And listen out for Public Law 86-272. That law might exempt your clients from Californian state income tax, if they don’t have a warehouse in Califo…

For your Australian clients there is a high chance that US federal taxes are zero thanks to the double tax agreement with the US. But most US states don't consider these agreements, so while your client doesn’t pay any federal taxes in the US, they most likely still pay state taxes. So for your Australian clients US state taxes are often much more …

No tax administration system works without tax identifiers. The ATO uses ACNs, TFNs and ABNs. The US uses SSNs, ITINs and EINs. Social security numbers (SSN) are used for tax purposes but also for social security. A social security number in the US is like an individual TFN plus a Centrelink’s CRN in Australia. SSNs are not relevant for us in Austr…

As a multi member LLC, you have to file 1065, 5472, K1, K2, K3 as well as 8804 and 8805. For a foreign member of a multi member LLC there is 1065 and K1 and then possibly also K2 and K3 listing the income allocated to the partners and then 8804 and 8805 listing any tax that has been withheld. The speaker in this episode is Alex Oware of O & G Accou…

Let’s look at s882 and 864 one more time. The term ‘limited force of attraction’ would make a good movie title, maybe a sequel to ‘The Accountant’. But putting Hollywood aside, The Limited Force of Attraction rule in s864 (c) (3) says that if you have a US Trade or business, then all your US sourced income is ECI. The speaker in this episode is Ale…

In the last episode, we looked at s882 of the Internal Revenue Code which covers foreign corporations with a US Trade or Business. Today let’s look at s864 (c ) of the Internal Revenue Code, which defines effectively connected income (ECI). s864 is the definition section, and for us it is s864 (c ) that is particularly relevant since it defines eff…

The answer is that US-sourced income that is not effectively connected and not FDAP - so-called 'Non-ECI non-FDAP income' - is not taxable in the US if derived by a foreign person. US Sourced Non-ECI Non-FDAP income is not taxable in the US. But the question in this episode is: Why? How can US-sourced non-ECI non-FDAP income not be taxable in the U…

Multi member LLCs - LLC’s with 2 or more partners - why this fear of multi member LLCs? f you have a multi member LLC, you have all the filing obligations, 1065, K1, K2, K3 and so on, but in addition - if your multi member LLC has a US trade or Business and hence effectively connected income, then you also have 37% withholding on any profits to ind…

Non-ECI Non-FDAP – how is US sourced income that is neither ECI nor FDAP taxed in the US if derived by a non-resident? This is the point of contention. One school of thought says that all US-sourced income is taxable in the US unless there is a specific exemption. But this is the minority. The majority - and the speaker in this episode is one of th…

Three factors determine how US primary tax law taxes LLC income – disregarding any treaty position: 1 – Source of Income: US or foreign-sourced? 2 – Business: US Trade or Business or not? 3 – Tax residency of partners: US persons or non-resident alien / foreign corporation? Learn more about this in this episode with Gary Carter of GW Carter in Edin…

A single-member LLC is a popular way to sell from Australia into the US through a 3PL service. In this episode, Ross Treeby of Treeby Tax Limited will walk you through the US tax side of single member LLs. Hosted on Acast. See acast.com/privacy for more information.Por numba Australia Pty Ltd

For US citizens living in Australia, the US taxation of Australian SMSFs is a huge question. Unfortunately, there is no easy answer. The US taxation of Australian SMSFs is complicated. In this episode, Marsha Dungog of Withersworldwide in San Francisco will walk you through the issues your Australian SMSFs face in your US tax return. Hosted on Acas…

For an expansion into the US is it best if your Australian trust holds LLC interests directly? Rather than going through a C-Corp? Australian Trust Holds LLC Interests When you expand into the US, you very quickly look at significant tax leakage and double taxation. And this despite potentially enjoying zero withholding tax (WHT). And despite poten…

Should an Australian loan to US operations go to your US blocker? Or directly to your US trading entity? Let’s say your Australian holding wants to give a loan to its US operations. How should you structure this loan? Should the Australian holding loan to your US blocker or directly to your US trading company? That is the question Marsha Dungog of …

Using an LLC plus blocker is a popular setup among Australian businesses entering the US market. In this episode, Marsha Dungog of Withers in San Francisco will tell you how and why. Hosted on Acast. See acast.com/privacy for more information.Por numba Australia Pty Ltd

You either just show dividends paid or you have to use a look-through approach for Australian companies in US returns. How are Australian companies picked up in US returns? So-called 1040s? Do you just record the dividend as income when paid? Or is it a look-through approach and you recognise income based on attribution? These are just some of the …

As a non-US tax resident, should you run your US business through an LLC or C-Corp? If you use a C-Corp blocker, should your trading entity sit within an LLC or C-Corp? This is the questions Alfonso Nuñez of Andersen in San Francisco will discuss with you in this episode. Here is what we learned but please listen in since Al Nunez explains this muc…

When you expand your business into the US, what types of US corporations are there to choose from? When your clients expand their business into the US, you will need one or two US corporations to optimise their US tax affairs. But what type of corporation? That is the question Al Nunez of Andersen in San Francisco will discuss with you in this epis…

In March and December 2020 all eligible US residents received US stimulus cheques. How do you treat those in Australian tax returns? For US purposes stimulus cheques are refundable tax credits and as such are not recognised in Australian tax returns. But don’t take our word for it. Seth Hertz of Expat US Tax will explain all this in much more detai…

How do you ‘read’ an US individual tax return for Australian tax purposes? Your US clients will probably give you their US individual Tax Return – also referred to as Form 1040 – which you then build into their Australian tax return. But how do you ‘translate’ this form into an Australian tax return? This is the question we asked Seth Hertz of Expa…

US v Australian tax for individuals – how do you ‘translate’ a US tax return into an Australian tax return? US citizens living in Australia are tax residents and hence assessable on their world-wide income in both countries. But what does this look like in practical terms? How are Australian franking credits and super guarantee payments treated in …

Whenever your client is a US citizen or Green Card holder, you will probably need to consider the rules around US tax for individuals. To help you look after your US clients, we asked Seth Hertz – Tax Director of Expat US Tax – for a general overview of US tax for individuals. Hosted on Acast. See acast.com/privacy for more information.…

Aliens do exist. There are around 7 billion aliens living all over the world. In fact you are probably one of them. And not just any alien, but a nonresident alien, maybe even a nonresident alien spouse. “But I am Australian and live in Australia,” you might object. “I have never been out of space, let alone overseas. How can I be an alien?” This i…

Are you or your client a US American living in Australia? There are over 100,000 US Americans living down under. Not a huge number compared to other nationalities migrating to Australia, but still a big group and rapidly increasing. As a US citizen or resident alien, the US will tax your worldwide income even while you live in Australia. So you got…

The tax system is broken. Here's how to fix it.

In this episode, Rik Thakrar and Lee Wilson discuss the federal taxation of medical marijuana dispensaries. This episode discusses two Tax Court cases - Californians Helping to Alleviate Medical Problems, Inc. v. Commissioner, 128 T.C. 173 (2007) and Olive v. Commissioner, 139 T.C. 2 (2012)- as well as the history leading up to these cases.…

In this episode, Rik Thakrar and Lee Wilson continue their discussion of deference to treasury regulations. They discuss several cases, including Loving v. U.S., 742 F. 3d 1013 (D.C. Cir. 2014) and King v. Burwell, 576 U.S. ______ (2015).Por Rik Thakrar and Lee Wilson

In this episode, Rik Thakrar and Lee Wilson continue their discussion of deference to treasury regulations. Cases discussed include Mayo Foundation v. U.S., 131 S. Ct. 704 (2011); National Cable & Telecommunications Association v. Brand X Internet Services, 545 U.S. 967 (2005); and United States v. Home Concrete & Supply, LLC, 132 S. Ct. 1836 (2012…

In this episode, Rik Thakrar and Lee Wilson discuss deference to treasury regulations. Cases discussed include Skidmore v. Swift & Co., 323 U.S. 134 (1944); Chevron, U.S.A. Inc. v. NRDC Inc., 467 U.S. 837 (1984); Smiley v. Citibank, 517 U.S. 735 (1996); and United States v. Mead, 533 U.S. 218 (2001).…