Entries by Manager

Foreign Earned Income Exclusion: 2011

Under I.R.C. §911, if certain conditions are met, a qualified individual can exclude his foreign earned income from taxable gross income for the U.S. income tax purposes. This income may still be subject to U.S. Social Security taxes. The income exclusion amount for 2011 has increased to $92,900 (in 2010, it was $91,500). Remember, if […]

IRS Increases Deductions and Exclusions for the Tax Year 2012

The Internal Revenue Service recently announced that for tax year 2012, personal exemptions and standard deductions will increase, and tax bracket thresholds will rise because of inflationary effects. This article will explain some of these changes. Personal Exemptions, Standard Deductions and Tax Bracket Changes The increased amount of each personal and dependent exemption will be […]

Form 5471: General Overview of the Required Information

The individuals who fall within the four categories of U.S. persons who are required to file Form 5471 find out very fast just how incredibly complex this Form is. In addition to various problems associated with GAAP compliance, tax year adjustments, understanding very complex corporate tax and accounting rules (as well as the difference between […]