Deductions For US citizen living in Ecuador - Expert Income Tax help on cross Border tax and immigration and divorce and RRSP
On 11/09/2010 12:35 PM, XXXXX wrote:
David; XXXXX suggested that you might be able to answer the question below. Would appreciate your comments on this. XXXXXX Subject: Re: Deductions I am not sure about that. That is a good question to ask David Ingram. On Sep 11, 2010, at 11:57 AM, XCXXXXX wrote:
In your letter today, you said this fellow would have a $92,000+ deduction against his SS, annuity and Interest/dividends. I was under the impression that the foreign residency deduction was only usable against earned income not investment income. If that is so, then the fellow would not have to pay Ecuador tax, but still would have to pay US income tax on his unearned income. Is this incorrect?
david ingram replies:
I am walking into the middle of something without the whole question.
However I will wade in.
Ecuador taxes "assessable" which income includes business income, employment income,
certain capital gains, rent and interest.
Deductions include interest and other expenses paid in gaining the assessable income
and gifts to some specified bodies.
The Tax rate is progressive from 5 to 35%.
If your question was not answered fully or you wish to go further, I am available for individual consultations by phone or email or in person for $450 per professional hour.
Please also note that we prepare Canadian, US, Australian, UK and New Zealand returns on a mail in, email, fax, snail mail or couriered basis. At any time, our clients are in 40 countries or more. They have every occupation from nuclear Submarine captains to FedEx pilots to Major Bank officers to Politicians, Diplomats and border patrol officers. My favourite, however, is a penguin catcher in Antarctica among others there..
If you 'really' only have a single question requiring a 'couple' of minutes, you can try phoning me for free as part of the following.
- For a quick free question
You might try calling Fred Snyder's radio program for an answer on a Sunday Morning..
Fred Snyder's "IT'S YOUR MONEY" radio show. on CISL, 650 AM on the dial in Vancouver from 9 to 11:00 AM every Sunday (604) 280-0650 or (877) 280-0650 - You can listen live from anywhere in the world at www.am650radio.com from anywhere in the world. click on the button in the top left hand corner.-
- You might try calling Fred Snyder's weekly radio programs for an answer.
Circular 230 Disclosure: Pursuant to recently-enacted US Treasury Dept. regulations, we are now required to advise you that, unless otherwise expressly indicated, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the internal revenue code or (ii) promoting, marketing, or recommending to another party any tax-related matters addressed herein.
Privileged and Confidentiality Notice: This electronic transmission (and/or the documents accompanying it) may contain confidential information belonging to the sender. The information is intended only for the use of the individual or entity to which it is addressed. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution, electronic storing, or the taking of any action in reliance on the contents of this information is strictly prohibited. If you have received this transmission in error, please immediately notify the sender by reply e-mail and immediately delete this record from your computer system.
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office) expert US Canada Canadian American Mexican Income Tax service help.