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Showing posts from January, 2014

Filing Thresholds 2014

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Even if you don’t have to file a tax return, there are times when you should. Here are five good reasons why you should file a return, even if you’re not required to do so:

1. Tax Withheld or Paid.  Did your employer withhold federal income tax from your pay? Did you make estimated tax payments? Did you overpay last year and have it applied to this year’s tax? If you answered “yes” to any of these questions, you could be due a refund. But you have to file a tax return to get it.

2. Earned Income Tax Credit.  Did you work and earn less than $51,567 last year? You could receive EITC as a tax refund if you qualify. Families with qualifying children may be eligible for up to $6,044. Use the EITC Assistant tool on IRS.gov to find out if you qualify. If you do, file a tax return and claim it.

3. Additional Child Tax Credit.  Do you have at least one child that qualifies for the Child Tax Credit? If you don’t get the full credit amount, you may qualify for the Additional Child Tax Credit. To c…

China's Century?

Last week my cousin Sherwyn and I were, as we do from time to time, FB chatting about the issues facing the "West" and I was trying to explain to him just how different things are in Asia.  From my point of view, issues of social stability aside, I feel an overwhelming sense of optimism in the economic outlook for Asia.  It is hard to ignore just how much China's position in particular, has changed in the past decade or two.

Before moving to Singapore, I would have course read about what was happening in Asia.  But reading something is very different from seeing or experiencing it first hand.  Another "Westerner" living here in Asia is James Corbett.  James is a Canadian who now lives in Japan and he is an open source journalist.  I subscribe to his news program and last week's e-newsletter seemed particularly poignant.

The title was - 5 Signs China is Taking Over the Earth (and what it all really means).  Here are the five key points from his piece...



#1: …

Thinking about Obamacare

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So a Democrat President promotes a healthcare plan at the Federal level, that was first initiated by a Republican Governor at the state-level. For those that argue that American politics is more divisive than ever, one of the easiest examples to consider is Obamacare.  The propaganda from both sides of the aisle is nothing short of fascinating.
For those who think it is a good thing, no proof is needed.  For those who don't like it, no proof is possible.
Regardless, here're the facts.  On June 28, 2012, the Supreme Court, in a five to four decision, held the insurance mandate and, thus, the Affordable Care Act (ACA) to be constitutional.  The Treasury Inspector General calls this the biggest tax act in 20 years.
The Affordable Care Act (P.L. 111-148), signed by the President on March 23, 2010, as amended by the Health Care and Education Reconciliation Act of 2010 (P.L. 111-152) and signed by the President on March 30, 2010, implements fundamental health care reforms and requ…

Can a UK Taxpayer claim double tax treaty protection while using a Delaware LLC

After a conversation last weekend, I have been thinking about the extent to which a UK taxpayer who earns income in the US, would benefit from using a Delaware Corp (i.e. a limited liability company or LLC).  I stumbled across this useful case which is cited at length below (some parts were underlined by me).

It seems that one should not automatically assume that double tax relief (typically in the form of foreign tax credits) is available.  To make the case for double tax relief, a structure may wish to consider demonstrating that -
1. The source of the profits or income in each jurisdiction is the same; and
2. The taxpayer became entitled to the profits of an entity because of some contractual arrangement to which he is a party.  Furthermore, he must show that the contract is actually the source of the profit, rather than a mechanism to secure a right to a profit derived from another source. This will in general mean that, as the judge held, he has to show a proprietary right to th…