Financial-advice firms see record 2015 earnings yet slowest growth since crisis, study shows

In The Wall Street Journal article, titled “Voices: Serving International Clients Is a Growing Market”, Steven Giacona, Partner & CEO of Round Table Wealth Management, addresses the benefits and new opportunities that open up when non-U.S. citizens seek out business deals in the U.S., as well as the “complex issues” that arise from these outside investments and ways to overcome them.

As stated in the article, he presents the following issues:

“A foreign person investing in the U.S. isn’t taxed on capital gains but is taxed on U.S. dividend income and certain interest income. When designing a portfolio, you need to have considerations like these in place.”

“Another common issue is real estate. Say non-U.S. citizens want to live or spend time in the U.S. and the clients buy a vacation home. Because of a complex formula based on how many days they’re in this country during each of three years, they may inadvertently be considered residents—the accidental Americans. Then their world-wide income is subject to U.S. taxation. Careful planning and record keeping is required to protect the non-U.S. citizen from substantial taxes.”

“Real-estate purchases are often better made through a trust. When the client wants to sell the property, the trustee sells it, and gains or losses are absorbed inside the trust. Proceeds can stay inside the trust or follow beneficiary designations.”

Steven concludes by saying that taking the time to learn about international clients/countries and the differences they portray and remembering to ask questions when needed, will separate the domestic advisor from the global one and streamline success in the growing international market.

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2019-07-15T22:10:34+00:00

About the Author:

Steven Giacona is a Partner and the Chief Executive Officer of Round Table Wealth Management. Read Steven's Biography >