Articles by Nick Hodges on ArticleSnatch.com

Expat Taxes: How the Death of Swiss Bank Secrecy Laws Impacts U.S. Expatriates

Mon, 21 Sep 2009 00:20:21 -0400

The IRS announced the resolution of IR-2009-075 on August 19, 2009, forever changing the international banking and investing practices of US Expatriates! Aggressive IRS pressure caused the multinational brokerage firm UBS and the Swiss government to cave in to account disclosure demands. The result of this victory is much worse than you think: not only will UBS be providing the IRS with the names of Americans that hold Swiss accounts at UBS, but the Swiss Government agreed to process additional IRS requests relating to OTHER Swiss banks. This is an international victory for the IRS over another country's sovereign rights. It also sends a clear signal to US Expatriates that the IRS is intent on finding your money abroad. So your money isn't hidden in a Swiss bank? If the IRS can get the Swiss to break their bank secrecy laws, what country do you think they will go after next? So you've been filing a tax return? Did you know that the Report of Foreign Bank and Financial Accounts (FBAR) form is NOT part of your tax return? Did you know that it isn't even filed with the IRS, but the US Treasury? **End Summary** Topics: Nick Hodges]]> ExPatCFO]]> swiss banking]]> swiss banks]]> swiss government]]>]]> About the Author: ]]> Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at =======> ExPatCFO.com

ExPat Finances: Three Key Strategies for Building a U.S. Expat's Financial World

Tue, 01 Sep 2009 01:18:31 -0400

Sean is living a very exciting life. At the ripe old age of 27, Sean, has a sky-rocketing career, annually earning in excess of six-figures. He sees the world as an international stage for his career success. Recently, Sean met Amber, and they plan to marry and start a family. By his own admission, it's time for Sean to clean up some of his financial mistakes. While Sean has focused intently on developing his earning potential, he let other issues tarnish his credit report, missed important tax deductions, and spent his money as quickly as he earned it. I interviewed Sean and Amber for nearly an hour, reviewing their financial details and talking with them about their goals for the future. Since they are just starting to build their financial world, the three important points emerged: They are not as organized as they need to be for financial success. They are not receiving good tax and planning advice. They do not understand how to plan for their financial future. After they deal with these issues they can focus on growing their financial world and protecting what they're working so hard to achieve. **End Summary** Topics: Expat]]> Expat Tax]]> Foreign Earned Income Exclusion]]> Financial planning]]> income]]> tax deductions]]> Nick Hodges]]> ExPatCFO.com]]>]]> About the Author: ]]> Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at =======> ExPatCFO.com

ExPat Finances: 3 Secrets to Keeping Your Expat Finances in Order

Mon, 31 Aug 2009 08:18:13 -0400

At the outset, Kathy and John look like the average young family. They both work full time while raising their two children, ages five and six. Kathy worries about having enough life insurance in place, funding their children's education, saving for retirement, and taking care of her aging mom in New Jersey. They own rental property in Florida and want to buy another home in New York. However, Kathy and John's world is more complicated than that. They are expatriates from different countries: John is from Ireland and Kathy is from the U.S. They have lived and worked abroad for over 12 years. Kathy hasn't filed her U.S. tax return in a couple of years because the tax professional she used closed the practice. They have bank accounts in U.S. dollars, Euros, and Dhs. Kathy's career changed this year when she moved from the non-profit sector into the corporate world, increasing her income three-fold. Neither of their employers sponsors a pension or retirement savings plan. 1. Taxes. For U.S. Expats, it always starts with taxes. **End Summary** Topics: Expat]]> Expat Taxes]]> Americans abroad]]> Foreign Earned Income Exclusion]]> reduce taxes]]> savings]]> Nick Hodges]]> ExPatCFO.com]]>]]> About the Author: ]]> Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at =======> ExPatCFO.com

ExPat Tax Tips: The Death of Foreign Earned Income Exclusions?

Sat, 18 Jul 2009 00:00:00 -0400

President Obama is tagging your Foreign Earned Income Exemption to help pay for huge federal budget deficits. He thinks to hide this motive behind recent White House announcements about U.S. companies, providing smokescreens such as: "I want to see our companies remain the most competitive in the world," and "...the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens." The reality is that with tax gaps estimated in the $400 billion range, this administration is hard-pressed to come up with new sources of revenues to fill the deficit. It is estimated that offshore tax abuses cause the United States to lose approximately $100 billion each year in tax revenues. Recovering these funds represent a substantial portion of the annual U.S. tax gap, which is why President Obama has authorized an additional $128 million for the 2010 IRS budget, which includes the addition of 800 new IRS agents. Do not be fooled, they have declared war on YOU and are coming after YOUR money. **End Summary** Topics: Foreign Earned Income Exemption]]> budget deficits]]> overseas tax havens]]> tax]]> offshore income]]> Nick Hodges]]> ExPatCFO.com]]>]]> About the Author: ]]> Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at =======> ExPatCFO.com

How U.S. Expatriates Can Avoid the 13 Most Common Expat Tax Traps

Fri, 03 Jul 2009 00:00:00 -0400

While the expat experience can be an exciting an exhilarating adventure, there is no greater frustration and disappointment than having the IRS ruin your experience by auditing your tax return while away, calculating additional taxes due, penalizing and charging you interest during the process, and even perhaps suggesting jail time for your mistakes. That's why it is so important to avoid these 13 common expat tax traps. 1. Foreign earned income exclusion. Many expats believe that because their foreign earned income is below the exclusion limit they do not need to file a return. The exclusion can only be taken by filing a return and completing Form 2555. If this is not done timely, the expat will NOT be able to use the exclusion. 2. Foreign bank accounts. An Expat opens a foreign bank account and does not file treasury form TD.90-22.1. Any US citizen with a financial interest in or who can sign on a foreign bank account with a value of more than $10,000 must file this form. 3. Foreign tax credit. Expats may also be entitled to a foreign tax credit by filing Form 1116. **End Summary** Topics: US expatriate]]> expat]]> expat tax advice]]> tax traps]]> foreign earned income exclusion]]> foreign tax credit]]> foreign housing exclusion]]> Nick Hodges]]> ExPatCFO.com]]> ]]> About the Author: ]]> Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at ExPatCFO.com

How Does Updating Our Family Trust Affect Our Existing Assets?

Tue, 30 Jun 2009 00:00:00 -0400

This article is in response to a question recently asked by one of my tax clients, Jim, which was, "How does updating our family trust affect our existing assets?" I'm going to start by establishing some basic disclaimers and ground rules regarding my comments below. I am not an attorney, nor do I want to provide legal advice. I work with a number of great attorneys that practice in this area. My focus in responding to this question will be from a tax professional's standpoint, based on my practical knowledge gained from working with thousands of clients over many years that have (correctly and incorrectly) handled their estate issues with a living trust. A LITTLE HISTORY A living trust is considered to be a separate tax entity, originally created for people who were still living, but could no longer handle their financial affairs. The trust document would identify the participants: --the Grantor - the person whose affairs needed to be handled --the Trustee - the person or business that would be handling said affairs, and --the Beneficiaries - the people or causes that would receive any remaining assets in the event of the Grantor's passing. **End Summary** Topics: Estate]]> living trust]]> Trust document]]> Estate taxes]]> Retitling assets]]> Beneficiaries]]> Amendment]]> Tax professional]]> Nick Hodges]]> ]]> About the Author: ]]> Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at ExPatCFO.com

Recession Busting 101: Change Your Consumer Fear to Consumer Confidence

Mon, 29 Jun 2009 00:00:00 -0400

As my clients' trusted advisor, I know that they depend on me to sort through the breadth of information in the marketplace and report that which I believe to be the most important to them and their loved ones. Recently I had the opportunity to participate in the cutting-edge, day-long Securities Industry and Financial Markets Association (SIFMA) Annual Meeting in New York City. Given these historic times and volatile markets, I felt very fortunate to be able to attend this prestigious event and hear directly from the country's premier industry speakers on the very topics most on our hearts and minds today: the state of the market and our economy. However, before the conference kicked into full swing, I had the chance to pay a personal visit to the Wall Street Bull to let it know just how ready we all are for another Bull Market. I want everyone to know that I am willing to go straight to the "source" for my clients. The SIFMA conference included top industry executives from every financial and governmental arena. We started the day attending an early breakfast meeting with Michael Bloomberg, the Mayor of New York City. **End Summary** Topics: recession]]> consumer fear]]> consumer confidence]]> tax professional]]> Nick Hodges]]> ExPatCFO.com]]>]]> About the Author: ]]> Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at ExPatCFO.com

7 Tips to Protect Your Parents from Unscrupulous Advisors

Wed, 24 Jun 2009 00:00:00 -0400

Rose is a 71 year-old widow. She has raised three wonderful, successful children. Rose has lived a very independent life and has been very secret about her money matters. Her problem? Rose was about to get SCAMMED! And none of her adult children knew enough about what was happening in her financial world to help her. Rose has been a tax client of mine for almost 20 years. Last March, Rose called me in a panic, describing a situation that caused me great concern, she said: "My financial advisor assigned me to a young man in his office about a year ago. I do not know him real well, but he just called me and told me that my retirement investment has just come "due" and that I MUST roll it over right away. He told me that I had to come to his office TODAY to sign the paperwork." I had never heard of a retirement investment like Rose's as having a "due" date requiring immediate rollover. I knew that Rose did not have her retirement funds in a CD, which does have a maturity date necessitating reinvestment. **End Summary** Topics: Aging parents]]> Income tax. elder scams]]> Elder care]]> financial planning for seniors]]> what to do with Mom]]> Nick Hodges]]> ExPatCFO.com]]>]]> About the Author: ]]> Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their expat taxes and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at ExPatCFO.com

25 Questions U.S. Expatriates MUST Ask to Choose the RIGHT Professional to Manage Expat Taxes

Fri, 05 Jun 2009 00:00:00 -0400

The Internet super-highway opens up marvelous opportunities for expatriates to harvest expat tax advice and information from some of the greatest minds at reasonable prices from anywhere in the world. But it also emphasizes a crucial question: How do you know whom to trust? Sharing your intimate, personal financial information with a stranger is problematic at best. Here are 25 questions to help any expat choose a tax and financial professional you can trust. 1. Physical office. Do they have a physical office in the US that you can visit? Even if you never have to meet them face-to-face, the professional integrity required of a firm conducting a bona fide business should be considered. 2. Reachable contact person. Is there an actual person who will be ultimately responsible to take care of you and your financial world? 3. Valid licensure. Does their home state licensing board affirm that the tax professional you would like to use has an active license in good standing? 4. FINRA background check. If the tax professional is also Series-7 licensed, do they and their broker dealer and have a clean history with FINRA? http://www.finra.org/Investors/ToolsCalculators/BrokerCheck/index.htm 5. Active insurance license. **End Summary** Topics: US expatriate]]> expat]]> expat tax advice]]> FINRA]]> Form 1116]]> Form TD. 90-22.1]]> Nick Hodges]]> ExPatCFO.com]]> NCH Wealth Advisors]]>]]> About the Author: ]]> Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at ExPatCFO.com

Expat Tax Lesson Learned From the Gorillas of Ruanda

Thu, 04 Jun 2009 00:00:00 -0400

I recently went to Africa with my son to see the gorillas of Ruanda. We had the privilege to be with a gorilla family for over an hour. The total number of gorillas in the family was nineteen, including infants. After trekking on foot through a thick bamboo forest at an altitude starting at 8,000 feet, we were awed and amazed at the sight. I must confess, however, that we did not start this adventure on our own. When we came upon the gorilla family, we had been well-prepared by our guide, François. He understood the realities and the apprehensions associated with visiting the gorillas. He had been here before; he knew this particular gorilla family well. Because of his expertise, we were able to observe a mother gorilla and her baby from a distance of only five feet! Instead of being frightening, it was wonderful. The mother lovingly held her child as the child reached his arm out to us to play. The mother was not afraid; after all, she held her child and we were with François, our guide and her trusted friend. Shortly thereafter, we spotted Lucky, the dominant male silverback of the family. **End Summary** Topics: US expatriate]]> expat]]> expat tax advice]]> ex pat tax professional]]> gorilla]]> Ruanda]]> Nick Hodges]]> ExPatCFO.com]]> NCH Wealth Advisors]]>]]> About the Author: ]]> Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at ExPatCFO.com