The British Royals’ New Irs Troubles

The IRS might soon find out more than it’s ever known about the British Royal Family’s worth. Now that Prince Harry and Meghan Markle are married, the couple will need to file U.S. taxes.

The U.S. is the only major country in the world that taxes its citizens living and working abroad (which, essentially, means double taxation). Markle plans on becoming a British citizen but that process takes years, and it’s unclear whether she’ll give up her U.S. citizenship when she does. Meanwhile, she’s pregnant. So her child will be born a dual citizen—and will remain so until at least 16 years of age—further complicating their tax issues.

So until Markle and the child square away their allegiances, she and Harry will need to file U.S. taxes. But they likely won’t be your run-of-the-mill income tax returns. If the couple has more than $300,000 in assets at any point during the tax year (which is likely), Markle will need to file a Form 8938, which will reveal her financial details. Whatever assets she’s been given by House of Windsor—including foreign trusts—will need to be declared.

Every year, thousands of U.S. citizens living abroad renounce their citizenships thanks to these unforgiving U.S. tax laws. But doing so isn’t cheap, either. To become an expatriate, you must pay a hefty exit tax of $2,350, which is more than 20x the average of other high-income countries and 422% higher than it was in 2012.

Image Copyright: inkdrop

January 7, 2019

Client Spotlight

Under certain circumstances, an S corp election can be great for tax savings, but it’s not always great for growth. Here’s what you should know…
As a business owner, what can you do to eliminate tax surprises? Before jumping on tax liability insurance to insure your tax bill, consider what…
From accountant to owner, and now to a successful exit! Amir Kamel proved that “everything good takes time”—including walking away on your own terms. Read…
After waiting 11 years for his visa, Amir Kamel’s journey from Cairo to building a multi-million dollar Texas business is a true masterclass in grit,…
Used wisely, 100% bonus depreciation can fuel growth and protect cash flow; used poorly, it can create unnecessary debt and future tax friction….
Discover how this San Antonio entrepreneur transitioned from managing communities to constructing them—doubling his commercial construction firm’s size year over year….
In the eyes of the IRS, student-athletes landing NIL deals are now self-run businesses. Learn the tax implications and four golden rules critical to their…
Disputes in closely held businesses rarely stem from simple math errors. Instead, they arise from “creative” accounting that obscures the business’s true economic reality….
While you might not be signing an addendum with the Acting Attorney General, you CAN use closing agreements and statutes of limitation to create your…
When building wealth in Texas, poor planning can result in hefty taxation as you earn your way to the top….
A new precedent is forming in the tax courts that can cost even innocent taxpayers hundreds of thousands of dollars….
George Clooney’s recent relocation to France highlights a complex financial dilemma: maintain dual citizenship and face dual tax systems, or renounce U.S. citizenship and trigger…

Blogs and Articles

Is an S-Corp Election Still Right for Small Business Owners?

Under certain circumstances, an S corp election can be great for tax savings, but it’s not always great for growth. Here’s what you should know...

Is an S-Corp Election Still Right for Small Business Owners?

Read More

Do Businesses Need Tax Liability Insurance?

As a business owner, what can you do to eliminate tax surprises? Before jumping on tax liability insurance to insure your tax bill, consider what...

Do Businesses Need Tax Liability Insurance?

Read More

Princess Professional

From accountant to owner, and now to a successful exit! Amir Kamel proved that "everything good takes time"—including walking away on your own terms. Read...

Princess Professional

Read More

Princess Beauty Supply

After waiting 11 years for his visa, Amir Kamel's journey from Cairo to building a multi-million dollar Texas business is a true masterclass in grit,...

Princess Beauty Supply

Read More

100% Bonus Depreciation: Hits and Misses

Used wisely, 100% bonus depreciation can fuel growth and protect cash flow; used poorly, it can create unnecessary debt and future tax friction....

100% Bonus Depreciation: Hits and Misses

Read More

DJS Resources

Discover how this San Antonio entrepreneur transitioned from managing communities to constructing them—doubling his commercial construction firm's size year over year....

DJS Resources

Read More

College Athlete NIL Tax Implications: When Fantasy Becomes Reality

In the eyes of the IRS, student-athletes landing NIL deals are now self-run businesses. Learn the tax implications and four golden rules critical to their...

College Athlete NIL Tax Implications: When Fantasy Becomes Reality

Read More

Profit-Sharing Disputes: IDing What Went Wrong

Disputes in closely held businesses rarely stem from simple math errors. Instead, they arise from "creative" accounting that obscures the business's true economic reality....

Profit-Sharing Disputes: IDing What Went Wrong

Read More

What’s the Deal with Trump’s Forever Tax-Immunity Loophole?

While you might not be signing an addendum with the Acting Attorney General, you CAN use closing agreements and statutes of limitation to create your...

What’s the Deal with Trump’s Forever Tax-Immunity Loophole?

Read More

Secret Texas Wealth Tax Traps

When building wealth in Texas, poor planning can result in hefty taxation as you earn your way to the top....

Secret Texas Wealth Tax Traps

Read More

How Long to Keep Tax Records? Forever Might Be Best 

A new precedent is forming in the tax courts that can cost even innocent taxpayers hundreds of thousands of dollars....

How Long to Keep Tax Records? Forever Might Be Best 

Read More

George Clooney’s Exit Tax Dilemma

George Clooney's recent relocation to France highlights a complex financial dilemma: maintain dual citizenship and face dual tax systems, or renounce U.S. citizenship and trigger...

George Clooney’s Exit Tax Dilemma

Read More

Avoiding a Business Seizure for Nonpayment of Taxes

A business seizure is a last-ditch effort following many other attempts at tax collections. Here’s what to watch for and how to respond....

Avoiding a Business Seizure for Nonpayment of Taxes

Read More

4NS-Supply

How do you go from zero sales to 800% growth while maintaining a medical career? Dr. Paul Pallan shares his story of dual-career success and...

4NS-Supply

Read More

Better Tax Preparer Oversight May Be on the Way

Tax preparer oversight might soon be getting a rehaul thanks to a bipartisan Senate bill that aims to impose stricter standards and penalties for misconduct....

Better Tax Preparer Oversight May Be on the Way

Read More

Now Accepting New Clients

Let’s Start the Conversation

Let’s take a look at your finances together. We offer a complimentary 1-hour call to review your past tax returns. If we see a way to help you, we will.

Want to receive tax strategies and tips direct to your inbox?

Name(Required)