International and business taxation issues are many. Our best advice is to keep all records up-to-date, and get things right the first time, when it comes to taxes of any kind, but especially when it involves foreign activities. Consider some more specifics you should be aware of and get professional assistance with:
The area of international taxation requires specialized knowledge of both accounting and the tax code. Whether you are a foreign or domestic business or individual, you need to be accurately advised, in areas such as foreign tax credits, cross-border transactions, and tax system coordination, including treaties that may exist between the US and other countries, and more.
A qualified accounting firm, with specific expertise in international tax matters can help ensure compliance, whether you are a foreign national or native-born American with financial interests abroad. If you have assets, if you do transactions of a foreign nature, the complexity around taxation can become exponentially greater. What you want is a firm with specific knowledge in these areas of tax, whereby you maximize your tax efficiency, stay compliant at all times, and preserve your wealth. We are in such a position – equipped with this unique skill set, to be able to advise our clients on all aspects of international transactions, accounting, and taxation.
One More Quick Point – the Foreign Earned Income Exclusion in California
One question we get all the time is whether or not California allows the Foreign Earned Income Exclusion, the way the Internal Revenue Service does federally. The answer is no.
If you claim the FEIE on your IRS return, then you will be required to claim the same amount as income on your California state return. The only exception is the “safe harbor” provision for non-residents of California.
We would be happy to go into more detail on the FEIE, or any other international taxation question or issue you may have.