06 Feb e-Council Inc. Announces a New Strategic Partner

“Individuals seeking U.S. residency should take the proper steps, while they still can, to decrease potential tax liability in the United States. My knowledge as a tax professional adds another important alliance to e-Council’s strategic partnerships.” – Jason Brown

We are happy to announce that Jason Brown, CPA, has recently joined the ranks of e-Council Inc.’s team of strategic partners. Jason’s expertise in pre-immigration tax planning enhances e-Council’s multi-disciplinary team approach of incorporating a suite of complementary EB-5 services.

Jason Brown is the founder and owner of Foresight Financial, a CPA firm. He has over 16 years of national and regional firm experience specializing in federal, multi-state, and international taxation.  Mr. Brown is a member of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. Additionally, he has published several articles and is a frequent speaker at industry events and on expert business panels.

Mr. Brown’s background will be extremely helpful for our clients, especially during the pre-immigration tax planning phase. There are many potential tax issues that visa applicants need to be aware of before immigrating to the U.S.  In order to determine how U.S. tax laws will be applied in a given case, a tax planner must assess the visa applicant’s unique situation.

Most importantly, a preliminary analysis of the tax treaty between the U.S. and the individual’s country of origin needs to be conducted to determine which provisions apply. This initial analysis is extremely important because in certain situations – such as personal services, royalties, and capital gains – tax liability can be eliminated or substantially reduced depending on the applicable treaty.

Next, the tax planner must determine when the individual is considered a U.S. resident for tax purposes. The IRS uses the “substantial presence test,” which employs a complicated formula to assess whether an individual is a resident for tax purposes.[1]  Even if an individual meets the “substantial presence test,” he could still be treated as a nonresident if he is in the U.S. for fewer than 183 days per calendar year.[2]

Furthermore, it is important to determine when an individual will be considered a U.S. resident for Estate and Gift Tax purposes.  The test for this differs from the “substantial presence test” in that the person must be both present in the U.S. and have the intent to remain there permanently.

Additionally, in the case of the sale of a foreign corporation by the individual, the tax planner must analyze the benefit of electing a stepped-up tax basis for the assets under IRC § 338(g). Sec. 338 allows a corporation making a “qualified stock purchase” of another corporation to elect to treat it as an asset purchase rather than a share acquisition for U.S. tax purposes. The deemed sale of assets by a foreign corporation without U.S. operations is not subject to U.S. tax. So, making a §338(g) election in such a case would allow the individual to recognizes gain on the deemed sale of its assets.[3]

Another area of consideration is a preliminary analysis of the timing of income and deductions prior to becoming a U.S. resident, including an analysis of foreign tax credits. If an individual owns a business in his home country, it may be in his best interests to change the structure of the company. U.S. tax laws allow for a credit on U.S. tax if foreign tax has already been levied against the entity. Clearly this involves careful planning with a knowledgeable tax professional.

Considering all of the potential issues in pre-immigration tax planning, it is obvious that professional advice is necessary.  The e-Council Inc. team of highly qualified professionals offers a wide range of EB-5 strategies and visa business plan solutions designed for success.

To find out about professional, comprehensive Business Plans, whether for E-1, E-2, or any other business-related Visa, as well as a variety of complementary services designed to specifically address USCIS’s requirements, contact e-Council Inc.com at info@ecouncilinc.com.

e-Council Inc.com’s website, newsletter and other forms of communication contain general information about legal matters. The information is not legal advice, and should not be treated as such. You must not rely on the information on this website as an alternative to legal advice from your attorney or other professional legal services provider. If you have any specific questions about any legal matter you should consult your attorney or other professional legal services provider.

[1] http://www.irs.gov/Individuals/International-Taxpayers/Substantial-Presence-Test

[2] Id

[3] http://www.valuationresearch.com/assets/kb/Section%20338%20elections.pdf