The United States of America is considered the land of endless possibilities, especially when it comes to finance, and it manages to attract many investors in general and specifically many Israeli investors. In order to maximize on the potential of these investments, it is recommended to take into account the subject of taxation on investments, something that could be dealt with through, for example, opening an American investment bank account in the United States.
Tax Considerations and Investments in the United States
The globalization era allows us to diversify our investments and invest in countries overseas as well, and one of the most desired countries for investments, in the private sector as well as the business sector, is the United States of America, which is considered to be one of the bigger financially powerful countries in the world, if not the biggest.
Just as with any other investment, investments in the United States, in the popular field of real estate or any other field, the full scope of the financial considerations and aspects that have to do with the investment need to be taken into account, with one of the main aspects that should be taken very seriously being the aspect of taxation on investments in the United States of America.
A Clever Investment Begins in Early Tax Planning
The many different varieties of tax payments make up a considerable percentage of the United states budget and accordingly, the American tax authority acts within the full power of their authority to make sure that the taxation laws that have been set by law on different investment aspects are being upheld, All the while these tax laws could possibly change between state to state, in a manner that requires early tax planning and consultations with professionals on the subject, who are very familiar with the law and its’ many complexities.
planning the different aspects of the taxation on the planned investment in a wrong or poorly calculated way, could have serious consequences on the profitability of a deal and even create different fines and sanctions.
Accordingly, many investors are looking for the options that has the best value for them, with one of them being opening an American investment account in the United States of America.
When Would We Need to Open an American Investment Account in the United States?
Opening an American investment account in the United States and thus opening a bank account, our actions that can save you a lot of money, from a taxation standpoint as well as a currency exchange cost standpoint, again it is recommended to consult with experienced professionals in the field, who will help you complete the action in the fastest most efficient way, well fully catering to your needs.
Among the main cases for which an American investment account in the United States is needed are:
Real–Estate Investments
One of the most popular investments in the United States is investments in the real estate field, which has become a particularly common investment especially after the subprime crisis in the United States.
After locating the appropriate property that is fit for investment, it is important to examine how you would like to receive rate rent payments on the apartment, when one of the options is by opening an American bank account.
Investing in Foreign Trust Funds (PFIC)
Many Israeli citizens, who also have an American citizenship, might find themselves exposed the higher rates of taxation especially from investments in foreign companies (PFIC companies), that could also be in the form of trust funds, pensions, and Israeli provident funds.
The amount of taxes owed because of such investments could be lowered by opening an American investment account in the United States.
What Are the Advantages of Opening an American Investment Account in the United States?
Opening an American investment account in the United States allows you to complete fund transfers in a quick and comfortable way, without having to pay needless commissions when transferring money from the United States to Israel or from Israel to the United States and could also create an opportunity for you to make more investments, mainly because of the option to build up credit and get an American credit card when opening an investment account.
Opening an American investment account in the United States has another main advantage, having to do mainly with the taxation aspect that we had previously mentioned and is relevant mainly to Israeli investors with an American citizenship, in that when opening an American investment account in the United States, they could invest in the United States and avoid the different taxation limitations that exist when investing in foreign trust funds (PFIC).
How Can You Open a Bank Account in the United States?
Opening a bank account in the United States is made possible, of course, by arriving physically to a branch of the bank where you want to open an account and presenting the relevant documents – a valid visa, passport, and driver’s license.
But, when it comes to opening a bank account in the United States remotely, naturally the mission becomes more challenging, especially in light of the rigid laws that are constantly added and updated.
Therefore, the agreed upon recommendation is to open a bank account in the United States using an experienced and professional company in the field, that is familiar with the different procedures that change between state to state in the United States and the laws and taxation aspects that differ, so that besides the technical procedure of opening a bank account in the United States, you could also be assisted in opening the bank account according to your specific business needs and goals.
Opening a Bank Account in the United States? These Are the Things That You Should Check Out
Commissions
One of the main parameters used to check every bank an investment company, is the subject of the commissions that are charged for many different activities that we are planning on making in the account. In order to avoid surprises, fines, and high interest, it is most recommended to check ahead of time which actions exactly would cost a commission and how much that commission would be.
Digital آctivities
Whether you choose to open a bank account in the United States because of taxation reasons and other amenities or different reasons, we live in a digital world that is meant to allow us to perform different activities at the press of a button and without a real need to physically arrive at a bank branch. This is why it is recommended to find out which digital activities could be done quickly and easily through your intended bank.
Overdraft
Differently from bank accounts that are handled in Israel, an American bank account cannot possibly go into overdraft.
Look Into and Compare the Terms of Service
After doing all the relevant checks in choosing a bank that fits your needs the most in order to open an American bank account in the United States, it would be recommended to check every few years what the terms and conditions are and whether or not it would be worth it for you to move to a different bank account, in order to maximize your rights.
In Summary
Opening an American investment account in the United States allows you to be more efficient in both the comfort and accessibility aspect of managing the activities of your bank account in the United States and the taxation aspects, this being especially relevant to Israelis with an American citizenship.
In today’s digital age, it is possible to open an investment account in the United States without having to physically arrive at the bank branch, and the best way to do this and to complete the process is by using an experienced and professional company specializing in the field, that would help in the technical aspects of opening a bank account and also adjust it in the best way to your needs and your goals.
