By Jay Forte, Contributing Reporter

RIO DE JANEIRO, BRAZIL – Many United States citizens living overseas are unaware of the potential tax liabilities they could be facing in near future. To help out the Rio-based firm Ipanema Wealth, which is operated by British expatriate Amit Ramnani, offers financial and tax planning considerations.

With FATCA, U.S. individual taxpayers must report information, Rio de Janeiro, Brazil, Brazil News
With FATCA, U.S. individual taxpayers must report information about certain foreign financial accounts and offshore assets, image recreation.

The main concern is complying with FATCA (Foreign Account Tax Compliance Act), which mandates that U.S. individual taxpayers must report information about certain foreign financial accounts and offshore assets if the total asset value exceeds a specific reporting threshold.

Mr. Ramnani explains, “U.S. citizens have a permanent obligation with the IRS to file an annual tax return and a foreign asset statement (above a certain threshold).”

The FATCA regulations have resulted in many financial institutions closing their doors to U.S. citizens due to concerns about increased reporting to the U.S. tax authorities, even though many such institutions do not operate on U.S. soil.

Therefore U.S. citizens find themselves in an unsettling situation when trying to open accounts overseas. U.S. citizens also include Green Card holders and ‘Accidental Americans’ – either born in the U.S. or born to a parent who was naturalized in the U.S.

Many U.S. citizens, seeking global investment exposure, innocently invest in mutual funds and pension plans outside the U.S. However, such assets may be subject to unfavorable taxation, based on PFIC rules whereby the capital gains could be taxed at the highest rate of U.S. income tax.

Mr. Ramnani explains, “We recommend that U.S. citizens seek financial and tax advice together rather than risk making a careless investment decision and facing the potential tax implications in the future.” Adding, “We offer a select few overseas solutions, suitable for U.S. expatriates, which offer U.S.-compliant reporting, global investment exposure and secure asset protection. Our recommendation of investment vehicle and underlying asset strategy is tailored to the profile and objectives of each client.”

It is important to note that Ipanema Wealth provides an advisory service and does not engage in capital markets or the selection of financial instruments. If you would like to understand more about the U.S.-compliant solutions, please submit a specific inquiry via their web site here.

* This is a Sponsored article Ipanema Wealth.


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