Tax reform for dual citizens in the age of Trump
Swedish income and assets - how are they taxed in the USA? How are you taxed in the U.S. if as a citizen or green card holder you move back to Sweden? How does Trump's tax reform affect your personal U.S. tax return? These were some of the questions at a recent meeting of SWEA New York with the international tax advisor Ann-Christine Westerlund of Westmusa, Inc.
The informal evening held at the Swedish Church in Manhattan was well attended with at least half the audience being dual citizens of Sweden and the USA. Not surprisingly, Westerlund faced ample questions regarding everything from how to deal with regular income from Sweden, different retirement incomes, rental income and the capital gains tax, to how to handle inheritance and gifts from abroad.
U.S. nationals and residents have always had an obligation to report foreign financial assets but increased efforts to fight money laundering or the financing of terrorism have increased the oversight by the IRS while such agreements as the bilateral FATCA (The Foreign Account Tax Compliance Act) put more responsibility on foreign banks to report holdings by U.S. residents to the IRS. All U.S. taxpayers with an aggregate value of foreign financial assets of more than the reporting threshold (at least $50,000) are required to report this on Form 8938, which must be attached to the annual income tax return. The same is true for an individual U.S. taxpayer holding more than $10,000 in cash on any single foreign account. The sale of real estate in Sweden is as a general rule taxed in Sweden and through the double taxation agreement between Sweden and the U.S. then reported and deducted from any equivalent taxes on the sale in the U.S.
Every personís situation is different but the individualís legal obligation to report has become much more stringent and the financial systems much more transparent in recent years. For more info on SWEA (Swedish Womenís Educational Association) New York, see www.newyork.swea.org, or on Westmusa, see www.westmusa.com

If youíre anywhere near New York City, youíll have another opportunity to hear the presentation by Westmusa at a SACC New York breakfast seminar on Feb. 19, 8-9:30 a.m. at SACC/Gateway, 900 3rd Avenue, 29th floor. For info, see www.saccny.org