The FBAR – Foreign Bank Account Report
In addition to the tax reporting and tax payment obligations, American citizens and permanent residents have an additional reporting obligation – the obligation to submit an FBAR report. There is a great deal of confusion regarding this obligation – is it an independent obligation? Are those who submitted the tax return report exempt from the duty of […]
The FATCA – Foreign Accounts Tax Compliance Act
The U.S. tax legislation is largely incorporated under the Tax Code, which includes tens of thousands of sections of the law. Those who do not work in the fields of accounting and tax consulting, will not be able to keep up with the multitude of rules, sections and guidelines. In truth, familiarity with all the […]
GILTI provisions: The new tax liability you may not have known about
The tax reform of 2018 has created a real revolution – reducing the corporate tax rate, reducing the maximum marginal tax rate, providing tax exemption in the distribution of dividends of a foreign company, and much more. Despite these significant concessions, the tax reform imposed new tax obligations. Among these obligations is the GILTI provision. […]
EBITDA: Limiting tax deductions on interest expenses
On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act. The law has caused a tax revolution not seen in the United States in the past 30 years, creating extreme changes in the taxation of individuals, corporate taxation, and international taxation. In the article here before you, we will deal with one of the changes […]
Tax Return Filing For U.S Citizens Living Abroad
Anyone holding U.S. citizenship is obligated to file a U.S tax report to the U.S. tax authorities using Form 1040. On the form, the applicant reports his income from every source in the world and his marital status. Depending on these two factors, his annual tax obligations will be determined. In addition to this report, […]
The U.S. Tax Reform (BDO)
At the end of 2017, the U.S. tax reform was approved. The main goal of this reform is to strengthen the activities of American companies and encourage companies from abroad to operate throughout the United States. The reform includes a long line of benefits designed to improve competition, such as an effective reduction of U.S. […]
Article Of Organization
Articles of organization are a set of documents that regulate and authorize the status of a limited liability company (LLC). Limited liability companies are not considered corporations. These documents are submitted directly to the regulator and since they are not federal documents, they differ slightly between the county or state in which they were filed. […]
American Accountant
An American accountant also referred to as a CPA, mediates between citizens who hold a green card and the complex tax system. The United States Tax Authority, or the IRS, imposes substantial fines for inaccuracies or late reporting. Also, the IRS system requires any citizen who holds a green card to pay tax. Regardless of […]
Are you filing a U.S. corporate tax return? You should read this
Are you filing a U.S. corporate tax return? On this page you will learn about income tax filing obligations, types of forms, and more. Keep read the following article to fully understand the subject. Expanding business activity to the international level is no longer reserved for tycoons and has long since become a matter of […]
The differences between Israel and United States tax rates
Despite popular belief, the taxation system in each country is very different. Thus, the American and Israeli taxation systems are also distinct from each other. For many people, it is important to know these differences – whether they have dual citizenship or are considering investing in the United States. In this article, we will present […]
IRS fines and penalties
The IRS reporting obligation and the obligation to pay tax, are a very heavy burden on every citizen. These burdens become even heavier in cases where the person in question holds dual U.S. citizenship or in a case where Israeli citizens invest in the United States. The number of intricate reporting forms that need to […]
Advance US income tax: How to make sure you pay your tax liability on time
Do you have to report it to the U.S. Tax Authority? Did you think the tax liability payment would be made in the following year and only after the tax report was filed? Well, think again. The obligation to pay advances to the U.S. Internal Revenue Administration sets very different payment dates. Keep reading the […]
Real Estate Investment in the US and the FIRPTA
In 1980, an act called FIRPTA was enacted in the United States, this act is also known as the Foreign Investment in Real Estate Tax Act. This act taxes foreign Investors seeking to sell their real estate. In order to ensure tax payment to the American tax authorities by foreign investors, in the United States, […]
Estate tax – The Full Guide for the US Investing
Have you decided it’s time to invest your money in assets in the United States? Did you choose the property you’re interested in yourself or did an external company locate one for you? Are you sure the investment is worthwhile and confidant that this is the right move for your heirs as well? Before you […]
Tax refund for students with U.S. citizenship
Most students would be happy to receive a scholarship or any other financial aid to support them while studying. If you are a student with U.S. citizenship, you may be eligible for a scholarship that is a component of the tax refund for students with U.S. citizenship. Keep readin the following article to fully understand […]
U.S. Tax Authority and Israeli Bank Accounts
Before Big Brother was a high-rated TV show, it was a term coined by George Orwell to describe a situation in which individuals live under strict supervision and monitoring. Orwell coined the phrase in a novel he wrote, but did his prophecy come true? We’ll leave you to answer this question. Nonetheless, you should know […]
American Tax Returns – You Might Be Required to Them Without Knowing About It
The scope of the American taxing system, including American tax returns, is a very wide one, and it exceeds the scope that is customary in other countries. As a result, it is possible that as you are reading these lines you might come to discover that you are required to submit tax returns to the […]
US Gift Tax
So, you have decided to give your relatives a gift, you spent many hours choosing the perfect one, and now the tax authorities are demanding tax for this gift you bought them. What is a US Gift tax and When does the tax apply? keep reading. Could it be legit? If you are a U.S. citizen, […]
The U.S. tax audit: When the U.S. Tax Authority comes knocking on your door
One of the most unwanted visits is a visit by a representative of the Israel Tax Authority. The thought of the assessing officer knocking on the doors in a demand to carry out an interrogation is certainly enough to send chills down one’s spine. This is fact is true for any of the tax authorities, […]
Self-Employment Tax
Self-Employment Tax: The Tax Burden on Self-Employed individuals with U.S. Citizenship. Many self-employed people testify that the income tax takes a great portion out of their income. In some cases, this cut is so significant that they struggle to make ends meet. This is especially prevalent due to the fact that the tax rates that […]
Reporting withholding tax for foreigners using 1042 and 1042S Forms
As the boundaries between countries blur and the whole world turn into one global village, especially in the aspect of trade and the economy, the creation of international trade ties was encouraged. Indeed, for the last decade, the United States has been saturated with real estate investors, but also by people from the tech industry, […]
The United States Israel Tax Treaty
The process of globalization, the expansion of international trade, and the high mobility of people, capital, and services have raised many issues in taxation as well. If until now a person’s source of income originated from his place of residence, and all transactions have been done in the same political territory. In this new era, […]
Tax aspects of renting residential apartments in Israel and abroad
Does the instability in the stock market lead you to search for a safer and more stable investment channel? Like many others, you probably think that real estate investments are a safe and stable investment channel. And so, investing in real estate is a common practice both in Israel and abroad. Furthermore, with the expected […]
4 things to know about buying real estate using L.L.C
Using a L.L.C to acquire real estate in the United States has become a common practice in recent years. This popularity can be attributed to the preferred tax rate that the use of such companies often enables, the low cost of establishing and managing such companies and the protection the investor can enjoy by purchasing […]
Types of Real Estate Holding Associations in the United States: A Guide for the Wise Investor
In this article, we will discuss the types of real estate holding associations facing investors, while addressing the main differences between them. Professional tax planning will take into consideration all of those differences alongside the specific circumstances of the investor, in order to choose the option that will minimize the tax burden. So if you […]
U.S. Real Estate – The investors’ Full Guide
The increase in real estate prices in Israel, along with the decline in real estate prices in the United States and the high growth expectations, triggered the interest of many Israeli real estate investors. Thus, many Israelis, whether they have experience in real estate investments or not, have diverted their resources to this investment channel. […]
Real Estate Investing in the United States: Is It Worth It and What Should You Be Careful About?
Real estate investments in the United States have become an investment hit among many Israelis. Despite its increasing popularity, many investors face doubts and raise questions – is it in fact worthwhile? Does it pay off? Is somebody trying to trick us? We will discuss all these matters in the article before you. Real […]
The tax benefit you should know about: Qualified Business Income Deduction
Investing in American real estate? Want to increase profits? You should pay attention to the tax benefit known as QBI (an acronym for Qualified Business Income Deduction), which guarantees you a tax deduction of up to 20% of your income from the investment. What is the benefit, who is entitled to it and how can it be claimed? All this and more in […]
Issuing an EIN number
Have you decided to invest in real estate in the United States through a company? Does your Israeli company want to start an American subsidiary? One of the first things you will be required to do is to issue an EIN number. What is the EIN number? In what cases is it needed and how […]
Taxes of partnerships in the united states – Partnership Form 1065
Using partnerships to make real estate investments in the United States has become extremely popular among many Israelis. The use of partnerships has many advantages, but in order to use them in an optimal manner, close familiarity with the tax burden that applies to them is required, including the annual income tax report. Understanding the […]
Taxations on U.S. CFC’s (Controlled Foreign Corporation)
The tax reform that took place in the United States in 2018 has created extensive changes in the aspect of taxation that applies to individuals, the taxation that applies to companies, and in the aspect of international taxation. In the article before you, we will review the new tax regime applied to shareholders in foreign […]
Foreign corporate tax
The hope of increasing their market and plenty of possible collaborations encourage many Israeli companies to move or expand their operations to the United States. Operating using an Israeli company, as opposed to a local subsidiary, may have many advantages, but also quite a few disadvantages. In the following article, we will elaborate more about […]
Creating an LLC
When investing in the United States, the first step is to decide how to carry out the investment – directly as an individual or indirectly by one of the associations recognized by U.S. law. For the most part, Israelis seeking to make real estate investments in the United States prefer to make their investment indirectly […]
The process of establishing a C-Corporation in the United States
In this article, we will describe the process of establishing a C-Corporation in the United States, as many Israeli companies, including Israeli start-ups, seek to expand markets through operations in the United States. For the most part, Israeli companies prefer not to operate through the existing Israeli company but to establish a local American company and […]
Starting fresh with the IRS all there is to know about the IRS’s voluntary disclosure plan
It is no longer a secret that our private financial information is being passed between the tax authorities in the world. This exchange is done within the framework of the tax standards set by the OECD, and within the framework of the Financial Information Exchange Treaty that Israel has signed with the United States. The increasing […]
American Tax And Forms
For many of us the phrase “income tax” might cause feelings of discomfort and maybe even fear that stem from the complex unpleasant task of facing the tax authorities. Thus, the thought alone of the need to submit a detailed and legally binding tax report can seem like a dreadful mission for most of us. […]
Establishing an investment company in the U.S.
Many Israelis choose to make investments in the United States, whether it is investments in the field of finance, real estate, retail, etc. Some investors do not know that it is possible to save and facilitate the operation of the business, by opening an investment company. Which companies can be established and how to do […]
Taxation of PFIC investments in The United States
Due to the scope and complexity of taxation provisions, many Israelis with dual U.S. citizenship may find themselves submitting an incomplete or inaccurate tax report to the U.S. Internal Revenue Service thus exposing themselves to extremely heavy tax burdens. This is all the more true when it comes to investing in passive foreign investment companies […]
Taxation of capital gains and dividends in the United States
Each transaction that takes place contains numerous complicated tax components. When examining the tax aspects related to the transaction, the type of the incorporation in question, the structure of the activity, the nature of the activity, the reporting obligations and the taxation threshold that may apply to the transaction are only some of the influencing […]
Corporate tax
The world today can be described as a global village, and thus, cross-continent business activities are quite common. Many Israeli businessmen choose to expand operations or copy the center of their operations overseas – both in a desire to conquer new markets and in the hope to enjoy many new business opportunities. This practice is […]
Federal Tax in the United States
Any American citizen or resident is required to file a U.S. federal tax return on their income from any source worldwide This obligation applies even if the person does not live within the U.S. The U.S. Constitution authorizes each federal government to collect different types of tax from him. What are the most common […]
The actions that can be taken through the IRS website
The IRS is the U.S. Tax Authority. The IRS website is used to manage and collect funds from all citizens working in the country. Using an advanced computer system, and an accessible and user-friendly website, the website manages to help many people exercise their rights and know the exact extent of their duties and their […]
U.S. IRS
In Israel, on a given day, the acronym “IRS” is entered thousands of times into various search engines. The extensive amount of these searches indicates that the IRS is one of the most significant (and somewhat intimidating) authorities, for American citizens and some Israeli citizens who invest in the United States or conduct any business […]
Form 1099
There is an infinite amount of forms intended for the various tax reports to the U.S. Tax Authority. Each form has a numbering and a unique purpose, intended for various matters. Many may find themselves completely helpless in light of the many different instructions and forms. One of the most common and frequently used forms […]
Form W-9 and Form W-8: What does the bank want from me?
In the article before you, we will discuss the main idea of Form W-9 and Form W-8, their actual meaning, and address the question of their relevance to your bank and the American citizenship that you have (or might not have). So, if you are reading this article, you probably recently received a request from […]
Annual Tax Reporting in the United States – Form 1040 & Form 1040NR
In a famous quote Benjamin Franklin said that there are only two things that are certain in life: taxes and death. Indeed, from our birth to our death (and sometimes even after), the tax provisions accompany us every step of the way. This is all the more true when it comes to the American taxation […]
How will you know if you need to submit Form 8938 – Statement of Specified Foreign Financial Assets?
If you hold dual U.S. citizenship, or hold permanent resident status in the United States (green card holders), you should be familiar with the Foreign Financial Assets Declaration Form – Form 8938. This form is part of the annual tax report and includes information regarding financial assets you hold – in Israel or anywhere else […]
Types Of Forms
Should I file form 1040? Or maybe form 1120F is the right choice for me? Do you need to submit a tax report to the U.S. Tax Authority and cannot decide which forms to submit and what should be included with them? The following manual will guide you through all the important forms of the […]
Who is Entitled to Get Social Security Benefits?
Like the National Insurance Institute in Israel, the American Social Security Administration also referred to as the SSA, provides a variety of benefits to citizens, including those who live overseas. The following article will help you determine if you are entitled to retirement, disability, or survivor benefits. Getting to know the United States Social Security […]
Obama care – The US health insurance obligation
The American Health Care Reform, which came into effect in 2010, has succeeded in reducing the number of uninsured citizens. However, the insurance of temporary and permanent residents of the United States, who are not citizens of the United States, is not regulated by law. This means that such residents can be left uncovered, and […]
The services of the United States Embassy in Israel to American citizens
Part of an embassy’s role is to assist citizens of the country of origin when necessary. The U.S. Embassy in Israel is no different. And so, the U.S. Embassy in Israel provides many different services to American citizens, including assistance in times of trouble, issuing passports, handling naturalization procedures, and so on. In the following […]
The rights of an American citizen in Israel – The 6 rights
Across the globe, many people dream of possessing American citizenship. The fact that the United States of America holds immense amounts of power ensures that its citizens will enjoy political stability and economic and physical security. These are just some of the reasons why American citizenship is a sought-after commodity. Besides the stability of having […]
The Rights of American citizens
Unlike the rest of the world, the U.S. Tax Authority, the IRS, requires every citizen to report their income. While the conditions are strict, these come with a series of benefits, such as coronavirus grants, which are currently relevant, study grants, and even children’s grants, which are several times higher than those provided in Israel. […]
Renunciation of U.S. Citizenship – Taxation Aspects
Do you hold dual citizenship and are thinking of renouncing your U.S. citizenship to avoid the tax liabilities and reporting obligations that apply to American citizens? You should think again. Renouncing U.S. citizenship is serious and irreversible. Before starting this procedure, you must receive comprehensive professional advice that will ensure that you have seriously and […]
U.S.A Citizenship
The 21st century has brought diversity and variance that has never been seen in human history. The term “Global Village” is no longer just a futuristic descriptive phrase but an accurate description of the current culture. This diversity did not skip the civil affiliation of individuals to countries either and many people have dual citizenship. […]
Real estate taxation in the united states
The repercussions of the sub-prime crisis on real estate prices in the United States, along with the ever-increasing real estate prices in Israel, have made the American market a hub for real estate investments for many Israelis. And so, the Bank of Israel estimates that approximately 3 billion NIS will be invested by Israelis in […]
Income Tax in the USA
Income tax in the USA is a critical component in the federal financial system, which affects individuals, businesses and foreign investors equally. Understanding these foundations could provide a strong base for receiving intelligent investment decisions and for planning tax obligations efficiently – especially for foreign investors planning to find their way in the complexity of […]
Local Taxes in the USA
Being acquainted with local taxes in the USA can save expenses of both investors and residents of the USA. With MasAmerica’s accounting services in the USA it will be it will certainly be easier for you to save time and a lot of money. What Are Local Taxes in the USA? Understanding the local […]
Tax Planning and Obedience in the USA
Tax planning and obedience in the USA are a wide and complex part of taxation yet they are extremely important to the understanding for local and international investors. This comprehensive guide aims to shed light about the central aspects of navigating the USA tax system, focusing on strategies to make tax obligations more efficient, as […]
Taxation of American Citizens
Taxation of American citizens is a wide and multifaceted which includes different types of taxes on a federal, state and sometimes even local level. The USA operates a progressive tax system for the taxation of individuals’ income, which means the higher the income is the higher the tax rate is. This system is meant to […]
Tips for Handling the Taxation Process in the USA
Both residents and foreigners should know the characteristics of the taxation process in the USA in depth to save unnecessary expenses, without getting into trouble with the authorities. This article aims to provide important tips that will help Israeli investors manage their tax obligations in the USA efficiently while ensuring obedience to the rules and […]
LLC Taxation in the USA and Israel
Whereas LLCs both in Israel and the USA offer certain flexibility and advantages, their tax structure are significantly different. In the USA, the transfer taxation may help preventing double taxation, while in Israel LLCs handle company taxation with a potential for double taxation at the individual level. LLCs in the USA LLCs in the […]
Green Card Holders Are Considered American Citizens for Tax Purposes
Many people dream of an American citizenship and for that there are many good reasons. But besides the many upsides that exist for those who have citizenship to one of the most powerful countries in the entire world, there are also many requirements, one of the main important ones being the requirement to submit tax […]
Opening an American Investment Account in the United States
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, […]
Opening an American Bank Account
Opening a bank account in the United States of America has many different advantages: starting with tax refunds through saving on commissions or receiving quarterly payments from real – estate investments. But how do you do this in the correct way and who can you consult with? Here are all the answers Opening an American […]
Blocked stocks – Everything You Need to Know About the Difference Between Israel and the United States
Blocked stocks can be part of an incentive program for employees, but it is important to consider aspects of taxation and their impact on the net profit. In addition, it is advisable to know the difference between the way that these stocks are taxed in the United States compared to Israel. Blocked stocks, or as […]
The tax consequences of implementing options on shares given by the employer in the United States
Employees with stock options who submit tax reports in the United States need to take taxation considerations into account. In addition, knowing the amount of tax that needs to be paid when selling stocks is advisable. The option to buy stock is referring to a future date when it could be utilized in order to […]
Taxation in the United States for Individuals Who Are Not Citizens
When starting to discuss taxation in the United States for individuals who are not citizens, it is important to make the distinction between two types of income for foreigners in the United States: income generated from some form of business transaction, and income that is not generated from some form of business transaction. Each case […]
American Estate Tax on Shares
Many Israeli businesspeople know that the United States is heaven for investments if they are done right. It is true that the American taxation system can be problematic especially in subject of estates in the field of shares, something that can cost a lot of money for those who do not have an American citizenship. […]
Taxation on selling an apartment in the United States
Selling an apartment in the United States requires paying a tax on selling an apartment in the United States. In this framework there is a capital gains tax to pay for the rise of the value of the property. Of course, there are ways to avoid payment or lower the tax. For this it is […]
Inheritance Tax in the United States
Inheritance tax in the United States is a tax that must be paid from the estate of the person who has passed away, when the departed’s properties are outside the United States. Since paying inheritance tax in the United States can reach significant amounts, it is recommended to be familiar with the field, and in […]
Report Dates to the IRS – Corporate Reports
Similar to what is standard in Israel, active businesses that operate in the American market are required to submit tax reports in the United States. Although there are some differences between corporate tax reports in Israel and the United States, especially when it comes to taxation percentages. In the following article we will expand on […]
Report Dates to the IRS – Personal Reports
The tax authorities in the United States are considered to be among the most organized in the world and every American citizen is required to submit tax reports in the United States every year. Failing to submit these personal reports could lead to sanctions and even legal repercussions. In the following article we will lay […]
What is Tax ID?
Work or owning a business in the United States require a yearly tax report to be submitted on income in the United States. In the following article we will explain what a tax ID is and about the process of submitting the report. When Does the Need for a Tax ID Arise? One of […]
An S Corporation in the United States
During the last few years many Israelis are discovering the investment market in the United States, while most of the investments Israelis make in the United States are made through S corporations, also known as LLC companies. In the following review we will explain the meaning of the term, whether it is beneficial tax – […]
An Abridged Guide to Capital Gains Tax
Capital gains tax in the United States is a rated tax, decided based on the total income level of the tax – payer along with other characteristics of the profits such as the source of the amount received and the kind of income. In order to understand if these are funds that will be taxed […]
Tax Brackets in the United States
Tax brackets in the United States are a complicated matter, and it is important to consult with an American accountant in order to make wise financial decisions. In the United States, there are seven tax brackets at the following rates: 10%, 12%, 22%, 24%, 32%, 35%, and – 37%, and the tax rate for taxpayers […]
How Does Acquisition Tax Work in America?
Today the purchase of profit yielding properties in the United States does not include an acquisition tax charge. This is in contrast to what happens in Israel when purchasing a house or an apartment. There is no doubt that this is a major benefit for Israelis who are considering investments in American real – estate. […]
How Does Negative Tax Refunds Work in the United States?
Negative tax refunds in the United States, similarly to negative tax refunds in Israel, is available to different demographics in the United States subject to compliance with some eligibility criteria. In this breakdown, we will discuss the common cases where there is the possibility of eligibility for tax refunds in the United States and explain […]
What is ITIN? A Full and Comprehensive Guide
The definition of an ITIN number is the number of the American taxpayer (Individual Tax Identification Number). This is in reference to an identification number that is assigned for each person who is not an American citizen, in order to identify them when reporting to the authorities. In fact, any person with investments or who […]
