Foreign Tax Advisory for Coral Gables Residents
Coral Gables has long been home to an internationally connected community. Many residents maintain financial ties to their countries of origin – bank accounts, real estate, business interests, pensions, or family trusts abroad. These foreign assets and income sources create U.S. tax reporting obligations that require specialized knowledge to handle correctly.
As a foreign tax advisor with decades of experience serving the Coral Gables community, E Alex Ortiz, CPA, PA helps clients understand and meet their U.S. reporting obligations for foreign assets and income while taking advantage of every available credit, exclusion, and treaty benefit to reduce their tax burden.
Foreign Bank Account Reporting (FBAR)
U.S. persons – including citizens, green card holders, and tax residents – must file an FBAR (FinCEN Form 114) if the aggregate value of their foreign financial accounts exceeds $10,000 at any time during the calendar year. This includes checking and savings accounts, brokerage accounts, mutual funds, and certain foreign insurance policies.
Many Coral Gables residents have family bank accounts in Latin American countries that trigger this requirement, sometimes without realizing it. We help clients identify all reportable accounts, file current and delinquent FBARs, and establish a process to stay compliant each year. If you have unfiled FBARs from prior years, we can guide you through the appropriate compliance procedures to minimize penalties.
Foreign Income Reporting
All worldwide income must be reported on your U.S. tax return, regardless of where it was earned or whether it was taxed by another country. This includes foreign employment income, rental income from overseas properties, foreign pension and social security payments, interest and dividends from foreign accounts, gains from selling foreign real estate, and income from foreign trusts or estates.
We ensure all foreign income is properly reported, converted to U.S. dollars using the correct exchange rates, and that applicable credits or exclusions are claimed to prevent double taxation.
Tax Treaty Benefits
The United States maintains income tax treaties with over 60 countries. These treaties can provide reduced withholding rates on investment income, exemptions for certain types of income, and mechanisms to resolve double taxation disputes. Properly claiming treaty benefits requires understanding the specific provisions of each treaty and how they interact with domestic tax law.
We analyze each client’s situation to determine which treaty benefits apply and ensure they are properly claimed on the return. For Coral Gables clients with ties to Latin American countries, we are particularly familiar with the tax treaties and information exchange agreements relevant to that region.
Foreign Real Estate & Property
Owning real estate abroad creates multiple U.S. reporting obligations. Rental income must be reported on your U.S. return, and gains from selling foreign property are subject to U.S. capital gains tax (with a foreign tax credit for any local taxes paid). Additionally, foreign real estate held through a foreign corporation or trust may trigger additional information return requirements (Forms 5471, 3520, 8865).
We help Coral Gables clients properly report foreign real estate income and transactions, claim applicable deductions (including depreciation on rental properties), and navigate the complex interaction between U.S. and foreign tax rules for real estate.
Bilingual Foreign Tax Consultation
Dealing with foreign tax matters often involves reviewing documents in Spanish or coordinating with financial institutions in Latin America. Our bilingual team communicates fluently in both English and Spanish, which makes the process smoother and ensures nothing is lost in translation. We also help clients understand foreign-language tax documents and coordinate with foreign tax advisors when needed.
ITIN Applications – Certified Acceptance Agent
As an IRS Certified Acceptance Agent (CAA), we are authorized to process ITIN applications at our Coral Gables office. You can apply for or renew an Individual Taxpayer Identification Number without mailing your passport to the IRS – we verify your documents in person and return them immediately. Learn more about our ITIN services.
Get Expert Foreign Tax Guidance
If you have overseas assets, foreign income, or questions about your international tax obligations, contact our Coral Gables office for a consultation.