When it comes to determining if a person is considered a "US domiciliary" for tax estate and gift tax purposes, the decision hinges on both their physical presence in the US and their intent to remain indefinitely. The IRS examines the following non-exhaustive factors to discern this intent:
Duration and frequency of stay: The length and regularity of stays in the US are scrutinized.
Home and dwellings: The IRS considers the location, size, value, and nature of an individual's homes or dwellings, including whether they are owned or leased.
Location of personal belongings: Where valuable and sentimental items are kept can signal a person's intended place of residence.
Family and friends: The whereabouts of family members and close friends can indicate an individual's preferred domicile.
Community involvement: Engagement in local activities, including church and club memberships, can reflect where a person intends to live.
Business and professional ties: The location of work and professional relationships, such as with lawyers, accountants, and financial advisors, may suggest a preferred domicile.
Formal declarations: Statements made in documents like visa applications, wills, trusts, and even verbal assertions are taken into account.
Personal motivations: Factors like health reasons, seeking pleasure, or avoiding political turmoil can also influence domicile decisions.
It's important to note that these factors are collectively considered, and no single aspect is conclusive. The IRS evaluates the overall circumstances of an individual to determine their domicile status. Green card holders, legally recognized as “lawful permanent residents” of the US, often face challenges in arguing a non-US domicile status due to the implications of their green card. Therefore, involving US tax advisors is crucial for complex and high-liability cases.
Connect
Want to chat more about US tax? Find a time to connect with Tim here.
--- DISCLAIMER: EVERYTHING YOU READ ON THIS BLOG IS PURELY FOR YOUR INFORMATION AND ENTERTAINMENT. IT IS NOT MEANT TO REPLACE PROFESSIONAL LEGAL, TAX, OR ACCOUNTING ADVICE. SO, BEFORE YOU MAKE ANY BIG MOVES BASED ON WHAT YOU'VE READ HERE, PLEASE CHAT WITH YOUR OWN LEGAL, TAX, OR ACCOUNTING ADVISOR TO GET THE REAL DEAL ADVICE TAILORED JUST FOR YOU.
コメント