Expatriation Declaration and Form 8854: Case Study

International Taxes. Today we share a very interesting case involving tax expatriation, something many of our clients are beginning to consider in an increasingly globalized world. Case Study: Diego, the Expatriated Entrepreneur.Diego, a successful Argentine entrepreneur, decided to move to Europe after living several years in the United States. When he made the decision to expatriate, he realized that he not only had to fulfill the typical tax obligations of a U.S. citizen or resident, but also had to file Form 8854, essential to certify his departure from U.S. tax residency. This process requires not only a deep understanding of expatriation concepts but also a thorough knowledge of key dates and tax regulations applicable to residents and non-residents.At FINANCERS, we guided him through this process, ensuring that his expatriation declaration met all IRS requirements, including the proper compilation and submission of Form 8854 and other international tax documents. What is Form 8854?Form 8854 is the document that certifies tax expatriation. For anyone who has been a U.S. citizen or resident for a considerable period, this form is mandatory to formalize the exit from the U.S. tax system. Key Concepts:• Critical dates: Identifying when tax residency ends is key to determining tax obligations.• Rules for residents and non-residents: These rules vary depending on status in the year of expatriation, influencing what taxes must be paid.• Additional information: Often more information than usual is required, such as global assets and details about investments. If you find yourself in a situation similar to Diego’s, or if you are considering expatriating from the U.S., at FINANCERS we help you navigate this process efficiently so you can comply with all your tax obligations without wasting time or resources. Remember, key dates are essential to avoid penalties. If you have questions or want to learn more about our expatriation services, don’t hesitate to contact us. We are here to help you work peacefully and comply with all your tax obligations in a simple and effective way.

How Foreign Trusts Are Taxed and Their Fiscal Implications

Technical Wednesday. Hello, I’m Cr. Maximiliano Mira Salas, and today in our Technical Wednesday we’ll talk about Foreign Trusts and their tax implications. If you have an international trust structure or are considering creating one, this topic is essential for you! What is a Foreign Trust? A trust is a legal entity where a trustee manages assets to benefit others. The classification of a trust as domestic or foreign directly affects its tax treatment. 📌 A trust is considered foreign if: If it fails either criterion, it is classified as a Foreign Trust and has specific tax obligations. Key Tax Obligations Foreign Trusts must comply with strict IRS rules to avoid severe penalties: • Form 3520: Reports transfers to the trust and distributions received. • Form 3520-A: Filed by the trustee, reporting the trust’s income and expenses. 💡 Important fact: Failure to comply can result in fines up to 35% of the value of the transferred assets. Grantor Trust vs. Nongrantor Trust • Grantor Trust: The grantor reports the trust’s income as their own, even if no distributions are received. • Nongrantor Trust: The trust pays taxes, and distributions to beneficiaries are subject to additional taxation. 👉 Foreign Grantor Trusts are useful tools but must be structured carefully to comply with regulations. Real Case: Consequences of Not Reporting Imagine transferring assets to a foreign trust and failing to file Form 3520. The IRS can impose a 35% penalty on the transferred amount. Additionally, distributions to beneficiaries in the U.S. may be heavily taxed. 📌 Conclusion: Foreign Trusts offer advantages in tax planning but require strict compliance. Proper filing of forms is key to avoiding penalties and optimizing tax burden. At FINANCERS, we handle your tax compliance so you can focus on what matters: your business. 👉 If this applies to you or you know someone who needs it, share this information and work peacefully! Cr. Maximiliano Mira SalasInternational Tax Advisor | FINANCERS

What Are the ITIN and EIN and Why Do You Need Them to Operate in the U.S.?

Technical Wednesday. Hello, I’m Cr. Maximiliano Mira Salas, and this Technical Wednesday I want to tell you something fundamental if you are a freelancer, entrepreneur, or investor operating with the United States. What is the ITIN? ✔️ It is the Individual Taxpayer Identification Number. Issued by the IRS for those who do not qualify for an SSN but have tax obligations in the U.S. 💡 Who needs it?• Foreigners with income in the U.S.• Partners in international companies.• Investors seeking to benefit from tax treaties. 👉 Example: If you provide services to a company in the U.S., you need an ITIN to correctly file your taxes and avoid penalties. What is the EIN? ✔️ It is the Employer Identification Number, necessary for any business that wants to operate formally in the U.S. 💡 What is it used for?• Opening business bank accounts.• Filing company taxes.• Complying with IRS requirements. 👉 Key fact: If you are a foreigner, you must request it with Form SS-4 and send it to the IRS. The process can take a few business days. 🚨 Why is it important? Without an ITIN or EIN, you cannot operate legally, and you could lose up to 30% of your income due to unnecessary tax withholdings. 📊 Practical example:If you work as a freelancer and do not file Form W-8BEN, the IRS may automatically withhold 30% from you. Avoid this with the right strategy! At Financers, we take care of everything for you: ✅ Obtaining ITIN and EIN.✅ Complete tax filings.✅ Tax optimization for international businesses. Work peacefully and focus on your business.If you relate to this or know someone who needs it, share this post.

How Do Non-Resident Aliens (NRAs) Pay Taxes in the United States?

Technical Wednesday. Hello, I’m Cr. Maximiliano Mira Salas, and today in our Technical Wednesday we will explore how Non-Resident Aliens (NRAs) pay taxes in the United States. This topic is essential for freelancers, entrepreneurs, and Latin American investors who work or invest in the U.S. market. If this applies to you, keep reading! What is an NRA? A Non-Resident Alien (NRA) is anyone who is neither a U.S. citizen nor a tax resident under U.S. government criteria. This means you are not subject to worldwide taxation like residents, but only on income that comes directly from activities or investments in the United States. For example, if you work from your country for a U.S. company or invest in a fund operating in the U.S., you will only pay taxes on those specific incomes according to applicable rules. LLCs: A Flexible Tool LLCs (Limited Liability Companies) are very popular legal structures among foreigners operating or investing in the U.S. As an NRA, the tax treatment of your LLC depends on the number of members: For example, if you operate an LLC to invest in real estate or financial funds in the U.S., the income derived from those activities will determine whether you must pay taxes or not. Types of Income: What is Taxed? The U.S. tax system distinguishes between two main types of income affecting NRAs: 1️⃣ Effectively Connected Income (ECI): Income directly related to a business or activity conducted in the U.S. For example, if you have a physical store or provide consulting directly in the country, this income is connected to economic activities there. 2️⃣ Fixed, Determinable, Annual, or Periodical Income (FDAP): This technical term includes passive income, such as interest, royalties, or dividends. For example, if you invest in a U.S. company that pays you dividends, this income is subject to specific rules, even if you have not performed any activity directly in the U.S. Practical Case: An LLC for Investing Imagine you decide to create an LLC in the U.S. to invest in stocks or funds. If that investment generates income, such as dividend payments, you will be subject to U.S. regulations, but in a much clearer and direct way than if you invested without a formal structure. Also, depending on how you configure the LLC and your activities, you could simplify your tax compliance. Why is it Important to Understand This? Understanding tax rules for NRAs is crucial to avoid problems and seize opportunities. A well-designed structure can help you optimize your operations and reduce risks. At FINANCERS, we handle these matters so you can focus on growing your business or investment. 👉 If you relate to this topic or know someone who might need this information, share this content and work peacefully! Cr. Maximiliano Mira SalasInternational Tax Advisor | FINANCERS

Prepare Your Tax Return with FINANCERS!

Technical Wednesday. Hello, did you know the tax return form for this year is already available? 📋If you work or invest in the United States, completing the form is the first step to fulfilling your tax obligations. Access the form here Frequently Asked Questions: 1️⃣ How do I download bank statements?• RelayFi: Go to the «Transactions» or «Statements» tab, select the date range, and download in PDF or CSV format.• Mercury: Go to «Banking,» select «Statements,» and download them in PDF.• Other banks: If you use other banks, make sure to download bank statements for all your accounts for the fiscal year in PDF format and attach them to the form. 2️⃣ What is a RA and where do I find it?It is your Registered Agent, who receives official documents on behalf of your company. Check your incorporation documents or the last state renewal. 3️⃣ What address do I declare for the partners?Declare the actual address: where they usually reside, receive services, or have official documentation. 4️⃣ What tax information do the partners need?• In the U.S.: ITIN or SSN.• In other countries: Tax identification number, such as CUIT in Argentina. 5️⃣ Why is information about travel, green cards, or citizen partners requested?This is key to determine your company’s tax status and comply with applicable rules. 🕒 Deadline: Complete the form before February 10 to avoid delays. 💬 Have questions? We’re here to help:• Email: admin@financers.com.ar / bookkeeping1@financers.com.ar• WhatsApp: Click here to write to us 📢 Share this information and help more people work peacefully 😊 Cr. Maximiliano Mira SalasInternational Tax Advisor | FINANCERS

Attention all LLC partners in the United States!

Technical Wednesday. If you have an LLC in the United States, it’s time to file your tax return. At FINANCERS, we are ready to support you throughout this process and ensure you meet your tax obligations efficiently, paying only what is fair. 💡 Access the form here ☑️ How to get started?Complete the form at the link provided and follow these steps:1️⃣ Enter your company’s basic information, such as name, phone, and contact email.2️⃣ Indicate if you have completed the form before:• Yes: We will work with the previous information to make the process easier.• No: We will request important data like your registered agent’s address and bank statements.3️⃣ The form will guide you step by step automatically. Just follow the instructions to complete it easily. 🗓️ Important deadlines:✅ March 15: For Multi-Member LLC (Form 1065).✅ April 15: For Single-Member LLC or Sole Proprietorship (Form 1040 with Schedule C). ❓ Frequently asked questions:💬 Are you a U.S. citizen? If you are Argentine, mark “No.” Only mark “Yes” if you have U.S. citizenship.💬 What if I don’t have an SSN or ITIN? Leave that field blank unless the form marks it as mandatory with an asterisk.💬 What should I put in the TAX ID? Enter your CUIT (Argentina). If they ask for EIN, provide the one assigned to your company.💬 Which bank statements should I upload? Include all your account statements from January through December 2024, either monthly or in an annual document.💬 Should I include savings or broker accounts? Yes, add statements from savings accounts and investments in platforms like Interactive Brokers, Schwab, or Ameritrade. 🚀 Don’t leave this to the last minute!Complete the form today and let’s work together so your tax return is a success. At FINANCERS, we make this process simple and effective.

LLC vs. C-Corp: Which One Should You Choose If You Own Property in the U.S.?

If you own property in the United States 🇺🇸, deciding whether it’s better to be taxed as an LLC or as a C-Corp is key to optimizing taxes and protecting your investment 🙌🏼 ➡️ Watch the video until the end to learn about their characteristics and the most important deadlines. ⚠️ Important to note: If you filed Form 7004, the deadline to file your tax return with the IRS is automatically extended. 📆 Deadline dates with approved extension:• September 15: Multi-Member LLC (Partnership)• October 15: Single-Member LLC At FINANCERS, we are leaders in U.S. Tax Returns and take care of everything. 🚀 Don’t let taxes catch you by surprise!If you need advice, at FINANCERS we are here to help you.

Tax Structuring for Real Estate Investment in the United States

Dear reader, I am CPA Maximiliano Mira Salas, partner at FINANCERS, and on this occasion I want to explain how proper tax and corporate planning can optimize the taxation of real estate investments in the United States, while mitigating succession risks such as the Estate Tax. Tax Context: Direct real estate investment in the U.S., made either personally or through a disregarded entity LLC, exposes the foreign investor to:• Estate Tax: federal inheritance tax applicable to assets located in the U.S., with a marginal rate that can reach up to 40% on the gross value of the property at the time of the owner’s death.• U.S. source income tax: income from rentals or real estate capital gains is taxed as Effectively Connected Income (ECI), with progressive rates up to 37% if the LLC retains its tax transparent status. Limitations of a “stand-alone” LLC: Contrary to what many investors believe, forming an LLC without a superior corporate structure does not eliminate exposure to the Estate Tax, nor guarantee income tax optimization. Also, if no tax election (check-the-box election) is made to treat the LLC as a corporation (C-Corporation), the entity remains disregarded and the income is taxed directly in the hands of the foreign owner. Recommended Strategy: LLC Owned by an Offshore Entity An advanced and legally valid strategy for non-resident investors is to form a foreign entity (for example, a Limited Company in the BVI) that owns 100% of the shares of the U.S. LLC. This allows to: Aspects to Consider: Despite the benefits mentioned, this structure:• Does not exempt payment of federal and state taxes on real estate income generated in the U.S., which will still be taxed as ECI through the U.S. taxable entity.• Does not eliminate the application of local taxes (property tax, transfer tax, etc.) at the state and municipal levels.• May require additional compliance, such as filing reports with the Financial Crimes Enforcement Network (FinCEN) via the Beneficial Ownership Information (BOI) Report, and regulatory compliance of the offshore country. Legal Considerations: This communication is for informational purposes only and does not constitute legal or tax advice. Each case must be evaluated individually, considering the tax specifics of the investor’s country of residence, global estate, and applicable international treaties. At FINANCERS, we provide comprehensive professional advice to design corporate and tax structures tailored to each investor, ensuring regulatory compliance and international tax efficiency. If you want to explore how to structure your real estate investment in the U.S. with criteria of tax and succession efficiency, schedule a personalized consultation with our technical team. CPA Maximiliano Mira SalasInternational Tax Advisor | FINANCERS

Tax Reform 2025: How Does It Affect Your Business or Property in the U.S.?

Technical Wednesday. Hi, I’m CPA Maximiliano Mira Salas. Today we analyze the “One Big Beautiful Bill,” a new tax law passed by the U.S. Congress on July 4th. This regulation — one of the most comprehensive reforms in recent years — introduces key changes for companies, property owners, freelancers, and professionals with structures in the U.S., directly impacting how income, deductions, and tax obligations are calculated. At FINANCERS, we’ve selected the most relevant aspects for our clients. Below is a technical summary of the key points and how to act on them. 🏠 Single Family Rentals 100% Bonus Depreciation: Starting January 2025, you can deduct 100% of improvement costs (HVAC, appliances, flooring, landscaping) in the first year. ➡️ Consider a cost segregation study if the property is worth more than USD 250,000. 23% Business Income Deduction (QBI): The active rental deduction increases from 20% to 23%. ➡️ Make sure your activity qualifies as an operating business (management, maintenance, contracts). Energy Efficiency Credit (§45L): Up to USD 5,000 per unit for newly built or remodeled properties certified as energy-efficient. ➡️ Ideal for full-scale developments or series renovation projects. Opportunity Zones: This regime becomes permanent and allows capital gains taxes to be deferred or eliminated if reinvested in designated zones. ➡️ Contact us to verify whether your properties qualify or if you plan to sell and reinvest. 📊 C-Corporation Structur Corporate Tax Rate Increase from 21% to 25%: Affects companies taxed as separate entities. ➡️ Time to review whether your current C-Corp structure remains efficient or a switch is advisable. 15% Minimum Tax on Book Income (GAAP): Applies to companies with book income over USD 10 million, even if their taxable income is lower. ➡️ We analyze the differences between your financial and tax accounting to mitigate the impact. Depreciation and R&D Expenses: 100% bonus depreciation is reinstated for new assets, and R&D expenses within the U.S. are now fully deductible. ➡️ If you’re investing in technology, systems, or machinery, this is a strategic fiscal window. Qualified Small Business Stock (QSBS – Section 1202): The capital gains exclusion benefit expands to USD 15 million if held for at least 5 years. ➡️ If you’re planning a startup or raising capital, consider structuring as a C-Corp under this rule. Higher Business Interest Deduction: Limits on deducting interest from corporate loans are eased. ➡️ If you’re planning to expand or refinance, take advantage of this fiscal benefit. 🔍 What Can You Do Now? Request a full tax review with our technical team to determine how this reform affects you based on your current structure. If you rent properties, check whether your operation qualifies as an active business and plan your improvements strategically. If you operate through a C-Corp, evaluate whether it’s still the most efficient model or whether restructuring makes sense. If you’re about to build, sell, or develop, consult available tax benefits and how to document them properly. 📌 Legal and Accounting Disclaimer This communication is for informational purposes only and does not constitute legal or tax advice. Each case should be evaluated individually, taking into account the taxpayer’s country of residence, global assets, and applicable international treaties. Implementation of these reforms must be conducted under the supervision of a CPA specialized in U.S. GAAP and federal/state tax obligations. At FINANCERS, we support Latin American companies and investors in the U.S. in proactively adapting to the new tax landscape. Our team analyzes how this reform affects your current structure and helps you optimize deductions, adjust accounting records, and make strategic decisions within the current legal framework. CPA Maximiliano Mira Salas International Tax Advisor | FINANCERS