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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Tax Law

Date & Time
  • event Date

    Thursday, June 6, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

  • BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$347.00
CLE
CPE
ALL

This CLE/CPE webinar will provide tax counsel guidance on the U.S. tax treatment of foreign rental income and international real estate investments. The panel will discuss U.S. sourcing of income rules, exemptions, and reporting requirements. The panel will also provide insights into typical structuring options for investors purchasing real estate abroad for purposes of short term and vacation rentals, potential tax implications, and pitfalls to avoid.

Faculty

C. Edward Kennedy
Managing Director
C Edward Kennedy Jr, PC

Mr. Kennedy has more than 42 years of experience dealing with a variety of international tax matters, specializing in tax consulting services to a wide variety of clients ranging from closely held companies to multi-national businesses. His expertise includes domestic and foreign income and social security tax planning, tax compliance for individuals and corporations, tax treatment of incentive compensation plans, international assignment program administration, and international assignment policy design. Mr. Kennedy has also served as the U.S. practice leader for international social security matters for a Big 4 accounting firm. He is a frequent speaker in the areas of international tax compliance and reporting obligations U.S. information reporting requirements for foreign assets and foreign entities, U.S. tax implications of foreign pension and social security plans, and U.S. income and social tax treaty planning. Mr. Kennedy is a member of the Texas Bar and is licensed as a certified accountant in Georgia and Texas. He has a B.A. from Furman University and a J.D. from Vanderbilt University School of Law.

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Patrick J. McCormick
Partner
Rimon, P.C.

Mr. McCormick specializes in the areas of international taxation and multinational trusts and estates. He has published assorted national articles and given innumerous national and local presentations on assorted areas of international tax. He is licensed to practice in the State of New Jersey and the Commonwealth of Pennsylvania.

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Description

Taxpayers renting a vacation property, a residence, or other rental property located in foreign jurisdictions to supplement their income are required to report such income. Tax counsel must recognize the tax planning, reporting, and other issues stemming from foreign rental income received by U.S. taxpayers.

Many taxpayers have found renting a vacation property, residence, or a room a reasonable way to supplement their income. However, for foreign rental income, the taxes imposed and methods of applying these taxes are astounding, forcing taxpayers and tax counsel to carefully consider various taxes based on the location of the property.

Foreign tax credits may help alleviate the resulting double-taxation of income for U.S. residents but are only available on foreign-sourced income. In addition, other applicable regulations and tax treaties can be used to accurately assess taxes and credits for taxpayers.

What is certain is that there are significant penalties for failing to comply, and ultimately the owner is responsible for the calculation and timely remittance of these taxes.

Listen as our panel discusses U.S. sourcing of income rules, exemptions, and reporting requirements for foreign rental income. The panel will also provide insights into typical structuring options for investors purchasing real estate abroad for purposes of short term and vacation rentals, potential tax implications, and pitfalls to avoid.

Outline

  1. Source of income rules: an overview
  2. Taxes on short-term rentals: an introduction
  3. Rental income issues
  4. Other income
  5. Federal tax issues
  6. Treaty exceptions
  7. Occupancy and other jurisdictional taxes

Benefits

The panel will cover these and other critical issues:

  • International taxation of vacation, short-term, and other rentals
  • Federal tax rules and reporting requirements
  • Impact of U.S. tax rules on non-U.S. Airbnbs, VRBOs, and other rentals owned by U.S. citizens
  • Impact of treaty clauses on general income sourcing rules

NASBA Details

 

Learning Objectives

After completing this course, you will be able to:

  • Identify general rules for sourcing of income
  • Understand the impact of U.S. tax rules on foreign income stemming from offshore vacation rentals owned by U.S. citizens
  • Ascertain when standard treaty clauses may affect general income sourcing rules
  • Determine how sourcing certain income impacts foreign tax credits
  • Decide when a taxpayer might meet the de minimis exception to sourcing service income

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite:

    Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of international taxation including residency determination, foreign entity classifications, application of treaty benefits, as well as GILTI, Subpart F, and the related Section 250 deductions.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).