Tuesday, June 17, 2008
1) India does not have an estate or an inheritance tax;
2) There is no treaty with respect to the US and India on Estate and Inheritance Taxes;
3) As a US citizen, all of your assets, worldwide, will be subject to an estate tax;
4) If you are also a NJ domiciliary; all of your assets in NJ will be subject to both NJ Estate and Inheritance taxes. Note, New Jersey also has the right to tax some worldwide assets for estate and inheritance tax purposes);
5) There IS a treaty between the US and India with respect to income taxes (see: http://www.unclefed.com/ForTaxProfs/Treaties/india.pdf) Tax returns need to be coordinated and you will receive a deduction for income taxes paid in India. This may still result in higher taxes as you must report income on worldwide profits.
6) You can do planning to minimize the estate tax burden.
Monday, June 9, 2008
All U.S. Citizens can vote in a general election, regardless of where they live.
YES, you can vote in the
Please consider forwarding this to all citizens you know who are living abroad. Many do not realize that they can vote or how the deadlines for registering.
Questions regarding the above which cannot be answered locally may be referred to the
Director, Federal Voting Assistance Program
Department of Defense
1155 Defense Pentagon
Washington DC 20301-1155
Wednesday, June 4, 2008
Under the current federal estate tax laws, a person is allowed to pass on up to $2,000,000 to anyone they choose plus an unlimited amount to a surviving spouse (as long as he or she is a citizen). In 2009, this "exemption amount" is supposed to go up to $3,500,000 per person. In 2010, the federal estate tax is theoretically supposed to disappear, and in 2011, it goes back to the pre-Bush era exemption amount of $1,000,000.
In all likelihood, no one in their right mind will support any exemption amount of less than $2,000,000. In my personal opinion, the exemption amount will settle somewhere between $3,500,000 and $5,000,000 for the years 2010 forward.