December 2024

When it comes to financial planning, few things are as deceptively simple — yet potentially disastrous — as a missing name on a beneficiary form. One client’s experience illustrates how a single blank line on a 401(k) form led to an unexpected $70,000 tax bill, turning what should have been a smooth inheritance into an expensive lesson.

As a tax professional who works closely with real estate agents, brokers, and investors, I’m constantly reminded how even the most successful professionals can lose thousands of dollars in missed deductions — often without realizing it.

Living and working abroad offers exciting opportunities for career growth, lifestyle experiences, and financial diversification. However, for U.S. citizens and green card holders, earning foreign income comes with unique tax obligations that are often misunderstood or overlooked. As a CPA with over 20 years of experience helping U.S. expats navigate complex tax rules, I’ve seen firsthand how even minor missteps in reporting foreign income can lead to penalties, interest, or missed tax benefits. This guide explains what counts as foreign income, how it is taxed, and key strategies for staying compliant while maximizing benefits.

Proper planning and strategic utilization of deductions can save thousands every year. This guide breaks down the most important deductions, eligibility rules, and best practices to ensure you stay compliant while maximizing your tax benefits

When individuals or businesses in Colombia want to protect assets, manage investments, or structure real estate projectsYear-end taxes are sneaking up fast, and if it feels like the calendar just flipped to fall, that’s because it did! Still, the smartest business owners and real estate professionals know: November is the prime time to get ahead of tax season pressure and set up a stress-free year-end finish.

A Colombian Fiduciary (Fiducia) is a popular financial structure used in Colombia for managing assets, investments, and real estate projects. While it might look similar to a U.S. trust, the two are not treated the same—especially by the IRS. For U.S. taxpayers with ties to Colombia, misunderstanding this difference can lead to serious tax reporting issues. This article explains how Fiducias work, how they compare to U.S. trusts, and why the IRS often classifies them as foreign trusts—triggering reporting obligations on Forms 3520 and 3520-A. If you’re investing or managing property in Colombia, understanding the U.S. tax implications of a Fiducia is essential to stay compliant and avoid costly penalties.

Operating across borders brings immense opportunities—but also complex tax challenges. One of the most crucial areas for any multinational business is transfer pricing—the pricing of goods, services, or intangibles exchanged between related entities. Far from being arbitrary, these prices must follow the arm’s length principle, ensuring they reflect fair market value to prevent profit shifting and double taxation. Noncompliance can lead to severe penalties, audits, and reputational damage. Understanding key regulations, documentation requirements, and OECD guidelines is essential for staying compliant. This article breaks down the fundamentals of transfer pricing, its risks, and how to safeguard your multinational operations through robust compliance practices.

Owning property abroad is exciting, but for U.S. citizens, it's a major tax and compliance hurdle. The IRS requires detailed reporting of foreign rental income (Schedule E), and transactions may trigger FBAR (FinCEN 114) and FATCA (Form 8938) filings with steep penalties for non-compliance. Capital gains are taxable, and deductions must be properly managed using forms like the Foreign Tax Credit (Form 1116) to avoid double taxation. The key mistake is relying on domestic accountants; international real estate requires expertise in both U.S. cross-border regulations and local tax laws (like Spain's GILT tax). Working with a specialized CPA before purchasing can save significant time, money, and legal stress by ensuring accurate, timely filings and simplifying multi-layered compliance.

International tax compliance can feel like a maze — especially for CPAs serving clients with overseas businesses or investments. Recently, I helped a fellow CPA navigate complex cross-border reporting for their client, and that collaboration inspired me to formally offer dedicated international compliance support for accountants and their clients.