Foreign Tax Info

[Terry D EA]

Can anyone lead me to some tax information for Bermuda? I have a couple that the husband has dual residency status with the US and Bermuda. Both want to live here and do currently own a home locally and a home in Bermuda as well. I need US tax requirements for income earned from renting the home in Bermuda. To complicate things a little further, the spouse owns the home in Bermuda and a small business as well. She would be a non US citizen and is applying for citizenship. I have told them this is not my area of expertise but they want me to try. Any help will be appreciated.

Terry D.

[jainen]

>>US tax requirements for income earned from renting the home in Bermuda<<

I have no idea what you mean by "dual residency," but a U.S. citizen is taxed on world-wide income in the ordinary way. You might find something in the British tax treaty on the IRS web site.

[ed_accountant]

Jainen is correct. Worldwide income is taxable to US citizens. Having a home in Burmuda and US will not change the taxability of income in either location.

However, the foreign income deduction for federal purposes may help. With the foreign income deduction you must be out of the country for 330 days out of 12 consecutive months.

Burmuda appears to have no income tax, capital gain or corporate tax. Burmuda appears to be one of those offshore foreign tax havens that the IRS is always investigating..

Try googling or searching on the following:

"us expatriate burmuda income tax"

"US Expatriate Burmuda"

Good info link:

http://www.expatcpa.com/expat.htm

I personally would pass on this and suggest they seek another expert.

good luck