International Tax Articles
Explore McGowin Tax's articles for the latest in international tax advice. Stay informed on tax solutions and trends relevant to expatriates and multi-national businesses.
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![The Short-Term Rental Loophole: How to Deduct Rental Losses Against Your Income]()
The Short-Term Rental Loophole: How to Deduct Rental Losses Against Your Income
Learn how the short-term rental loophole can help you deduct rental losses against your income, including the 7-day rule and material participation tests.
![Can You Deduct Credit Card Points Used for Business Travel? (And Are They Taxable?)]()
Can You Deduct Credit Card Points Used for Business Travel? (And Are They Taxable?)
Can you deduct credit card points used for business travel? Learn why the IRS treats rewards as neither deductible nor taxable, plus key exceptions to know.
![Side Gig or Hobby? How the IRS Decides Whether You Can Deduct Your Expenses]()
Side Gig or Hobby? How the IRS Decides Whether You Can Deduct Your Expenses
Earning some income from a side gig doesn’t make it a business. Learn how the IRS hobby loss rules work, what the nine profit factors are, and how to protect your deductions.
![RSUs and the Wash Sale Rule: Why Your 1099 Might Be Wrong]()
RSUs and the Wash Sale Rule: Why Your 1099 Might Be Wrong
Brokerages often flag RSU vests as wash sales, disallowing your loss on Form 1099-B. Learn why the rule may not apply and how we correct it on your return.
![Mixed-Use and Converted Properties: How Renting Out Your Home Changes What You Owe at Sale]()
Mixed-Use and Converted Properties: How Renting Out Your Home Changes What You Owe at Sale
Renting part of your home or converting a rental into a residence? How the tax rules split your gain at sale - and why the sequence of those years matters.
![Willful or Just a Mistake? What an Ongoing FBAR Case Teaches Expats About Protecting Themselves]()
Willful or Just a Mistake? What an Ongoing FBAR Case Teaches Expats About Protecting Themselves
A new FBAR case shows how the IRS can call an honest filing mistake willful - and the three practical steps that keep you on the right side of that line.
![SA, SRL, or Direct Ownership? Structuring Costa Rica Property the Right Way]()
SA, SRL, or Direct Ownership? Structuring Costa Rica Property the Right Way
How you hold Costa Rica real estate as a US person changes your tax bill. Compare direct ownership, an SRL, and the check-the-box structure most buyers need.
![How the US-Spain Tax Treaty Actually Taxes Your Interest Income]()
How the US-Spain Tax Treaty Actually Taxes Your Interest Income
Learn how U.S. tax treaties apply to passive income, including the saving clause, foreign tax credits, and double-tax relief for expats in Spain.
![Does Your Foreign Country See Your US LLC the Way the IRS Does?]()
Does Your Foreign Country See Your US LLC the Way the IRS Does?
If you have a U.S. LLC and live abroad, the foreign country may not treat it as a flow-through, costing you thousands.
![How to Renounce US Citizenship in 2026: The Lower Fee, the Exit Tax, and What to Plan For]()
How to Renounce US Citizenship in 2026: The Lower Fee, the Exit Tax, and What to Plan For
Renouncing U.S. citizenship now costs $450 instead of $2,350. Learn about exit tax rules, covered expatriates, compliance, and planning.
![How Depreciation Works on Foreign Rental Properties (And How to Maximize It)]()
How Depreciation Works on Foreign Rental Properties (And How to Maximize It)
Foreign rental properties follow different IRS depreciation rules than U.S. real estate. Learn how ADS works, what cost segregation can still do, and when it's worth it.
![GILTI Is Gone: What the 2026 Tax Law Change Means for Your Foreign Corporation]()
GILTI Is Gone: What the 2026 Tax Law Change Means for Your Foreign Corporation
GILTI is gone. Learn how the 2026 tax law changes impact controlled foreign corporations, what replaces GILTI, and key strategies to reduce your tax exposure.
![Missed International Tax Forms? Here's How to Get Back Into Compliance Without Facing Massive Penalties]()
Missed International Tax Forms? Here's How to Get Back Into Compliance Without Facing Massive Penalties
Missed an FBAR or Form 5471 filing? Panic-filing makes it worse. Learn the IRS programs that restore compliance and eliminate penalties for most filers.
![Courts Rule Against Taxpayers on Form 5471 Penalties: What the Farhy and Safdieh Cases Mean for You]()
Courts Rule Against Taxpayers on Form 5471 Penalties: What the Farhy and Safdieh Cases Mean for You
Form 5471 penalties are now fully enforceable after key court rulings. Learn what the Farhy and Safdieh cases mean, your risk exposure, and how to handle delinquent filings.
![Retirement Planning for Self-Employed Expats: IRAs, SEPs, and the Solo 401(k) Explained]()
Retirement Planning for Self-Employed Expats: IRAs, SEPs, and the Solo 401(k) Explained
Retirement planning for self-employed expats: compare IRA, SEP, and Solo 401k strategies, avoid tax pitfalls, and maximize your savings.
![Paid Back a Bonus? Here's How the IRS Makes It Fair (Claim of Right Doctrine Explained)]()
Paid Back a Bonus? Here's How the IRS Makes It Fair (Claim of Right Doctrine Explained)
Paid back a signing bonus or income? Learn how the IRS Claim of Right Doctrine helps you recover taxes through a deduction or credit - and avoid costly mistakes.
![Why the Self-Rental Strategy Won't Increase Your Foreign Housing Exclusion]()
Why the Self-Rental Strategy Won't Increase Your Foreign Housing Exclusion
The Foreign Housing Exclusion requires a genuine out-of-pocket expense. Renting your property to yourself doesn't qualify. Learn why the substance-over-form doctrine kills this strategy, and what expats can do instead.
![Why Your Foreign Rental Property Probably Isn't Giving You the Tax Deductions You Expect]()
Why Your Foreign Rental Property Probably Isn't Giving You the Tax Deductions You Expect
Foreign rental property tax deductions are more limited than most investors expect. Learn the IRS rules for passive losses, personal use limits, and STR loopholes.
![How to Deduct Travel Expenses for Your Foreign Rental Property]()
How to Deduct Travel Expenses for Your Foreign Rental Property
Foreign rental property owners often miss legitimate travel deductions. Learn what qualifies, how to allocate expenses, and why documentation is everything.
![The Camp Housing Deduction: A Commonly Misused Rule That Could Cost Expat Taxpayers]()
The Camp Housing Deduction: A Commonly Misused Rule That Could Cost Expat Taxpayers
The camp housing deduction and foreign housing exclusion aren't the same. Learn which rule applies to your situation - and what's at stake if you get it wrong.
![The South Dakota Trick: How US Expats Can Avoid Unnecessary State Taxes]()
The South Dakota Trick: How US Expats Can Avoid Unnecessary State Taxes
Moving abroad doesn't end your state tax obligation. Learn how the South Dakota Trick helps US expats legally establish driver's license residency and avoid costly state tax notices - before they start.
![What US Expats Need to Know About Filing Their 2025 Tax Returns]()
What US Expats Need to Know About Filing Their 2025 Tax Returns
Learn about 2025 tax changes for US expats: FEIE increased to $130K, new $40K SALT cap, car interest deduction, and no tax on tips. File smarter this year.
![ChatGPT Just Cost Me $20,000: The Hidden Risks of AI Tax Advice]()
ChatGPT Just Cost Me $20,000: The Hidden Risks of AI Tax Advice
ChatGPT gave confident tax advice that would've cost my client $20,000. See the transcripts and learn why AI tools can't replace experienced professionals when it comes to the Foreign Earned Income Exclusion.
![Can You Deduct Educational Expenses? What Business Owners Need to Know]()
Can You Deduct Educational Expenses? What Business Owners Need to Know
Not every educational expense qualifies as a business deduction. Learn the IRS rules that determine if your courses, certifications, and professional development costs are truly deductible - including real examples and documentation requirements.
![What Ellen DeGeneres's UK Move Teaches Us About International Tax Planning]()
What Ellen DeGeneres's UK Move Teaches Us About International Tax Planning
Ellen DeGeneres' UK move reveals 3 critical tax traps when selling property abroad: principal residence exclusion timing, currency exchange gains, and dual tax systems.
![The FEIE Stacking Rule: Why Your Excluded Income Still Affects Your Tax Rate]()
The FEIE Stacking Rule: Why Your Excluded Income Still Affects Your Tax Rate
The FEIE stacking rule can cost expats thousands in unexpected taxes. Learn how excluded income affects capital gains rates and NIIT thresholds - real examples inside.
![The QBI Deduction Surprise That Catches Every Business Owner Moving Abroad]()
The QBI Deduction Surprise That Catches Every Business Owner Moving Abroad
Moving your business abroad? The 20% QBI deduction often disappears when you relocate overseas. Learn why it happens and how to preserve this valuable tax break.
![Form 1099-K: New Rules, Old Problems for Expats with Foreign Rentals]()
Form 1099-K: New Rules, Old Problems for Expats with Foreign Rentals
Learn how Form 1099-K rules impact US expats with foreign rental properties - and how to avoid IRS penalties when using Airbnb or VRBO abroad.
![Digital Nomads and the FEIE: Do You Really Qualify for the Foreign Earned Income Exclusion?]()
Digital Nomads and the FEIE: Do You Really Qualify for the Foreign Earned Income Exclusion?
Digital nomads: the 330-day test isn't enough for FEIE qualification. Learn the tax home and abode requirements most people miss - and how to document your position.
![Mel Gibson's International Tax Strategy: Lessons for Everyday Expats]()
Mel Gibson's International Tax Strategy: Lessons for Everyday Expats
What would I do as Mel Gibson's tax accountant? Analyze his dual citizenship, $30M Costa Rica property, and potential expat move - plus how these strategies apply to you.
![The PFIC Trap: How Foreign Mutual Funds Can Devastate Your U.S. Tax Return]()
The PFIC Trap: How Foreign Mutual Funds Can Devastate Your U.S. Tax Return
Foreign mutual funds can trigger devastating U.S. tax consequences through PFIC rules. Learn how mark-to-market elections and strategic planning can save you thousands. Real case study included.
![When AI Tax Planning Goes Wrong: The Hidden Dangers of DIY International Tax Structures]()
When AI Tax Planning Goes Wrong: The Hidden Dangers of DIY International Tax Structures
A U.S. logistics company used ChatGPT to plan their Singapore expansion - the AI-generated structure would have cost thousands with zero tax benefit. Learn why complex offshore structures often fail and what actually works for international tax planning.
![FEIE for Digital Nomads: How to Protect Your $130,000+ Exclusion]()
FEIE for Digital Nomads: How to Protect Your $130,000+ Exclusion
Digital nomads and remote workers without clear foreign home bases risk losing their $130K+ Foreign Earned Income Exclusion. Learn how the IRS challenges itinerant workers, what tax home and abode requirements mean, and how to build an audit-proof FEIE case before it's too late.
![Maximizing Your FEIE with the Foreign Housing Exclusion]()
Maximizing Your FEIE with the Foreign Housing Exclusion
Discover how the Foreign Housing Exclusion can add $20,000-$50,000 to your FEIE. Learn which expenses qualify, how the calculation works, and why most expats miss this valuable tax benefit.
![Canada's Departure Tax: Avoid the 'Last Shot' at Taxation for US-Bound Expats]()
Canada's Departure Tax: Avoid the 'Last Shot' at Taxation for US-Bound Expats
Canada's departure tax hits appreciated assets when you move to the US. You need the tax treaty's step-up election to avoid double taxation.
![The Hidden FEIE Trap That Could Cost Product-Based Businesses $70,000]()
The Hidden FEIE Trap That Could Cost Product-Based Businesses $70,000
Learn how capital intensive business rules can slash your Foreign Earned Income Exclusion by 70%. Discover the hidden FEIE trap affecting e-commerce and product-based expat businesses, plus strategic solutions to maximize your tax savings abroad.
![Crypto Taxation for Expats: How to Structure Trading, Mining, & the FEIE]()
Crypto Taxation for Expats: How to Structure Trading, Mining, & the FEIE
Learn how crypto mining and trading are taxed for US expats. Discover why the FEIE doesn't apply to most crypto income and how to structure your income correctly.
![The Short-Term Rental Loophole: How Foreign Property Owners Can Unlock Tax Savings]()
The Short-Term Rental Loophole: How Foreign Property Owners Can Unlock Tax Savings
Learn how the short-term rental loophole unlocks tax savings on your foreign property. Discover the 7-day rule, personal use traps, and strategic planning tips.
![Navigating IRS Form 5471 for US Expats with Foreign Corporations]()
Navigating IRS Form 5471 for US Expats with Foreign Corporations
Master Form 5471 requirements for your foreign corporation. Learn who must file, key deadlines, and strategies to minimize tax impact. Expert guidance for US expats.
![Unlocking Export Tax Savings: Understanding the IC-DISC Tax Strategy]()
Unlocking Export Tax Savings: Understanding the IC-DISC Tax Strategy
Discover how the IC-DISC can save U.S. exporters thousands in taxes annually. Learn qualification requirements, calculations, and real examples from tax experts.
![Rosie O'Donnell's Ireland Move: Your Politics Can Ruin Your Taxes]()
Rosie O'Donnell's Ireland Move: Your Politics Can Ruin Your Taxes
Rosie O'Donnell's move to Ireland to escape Trump created a complex tax nightmare. Learn why celebrity relocations abroad often backfire financially and what Americans considering international moves need to know about citizenship-based taxation, double tax burden, and IRS reporting requirements.
![Viable CFC Planning: Strategic Ownership Transfers to a Nonresident Spouse]()
Viable CFC Planning: Strategic Ownership Transfers to a Nonresident Spouse
Avoid costly CFC tax mistakes with nonresident spouse ownership strategies. Plus discover substance over form requirements that protect you from IRS challenges.
![The American Pope's International Tax Problem]()
The American Pope's International Tax Problem
When American-born Pope Robert Francis Prevost was elected, it raised unique international tax questions. Explore the fascinating U.S. tax implications of having an American Pope.
![One Big Beautiful Bill's International Tax Changes]()
One Big Beautiful Bill's International Tax Changes
The One Big Beautiful Bill Act (OBBBA) reshapes GILTI, FDII, Subpart F, BEAT, and more. See how these 2026 tax changes impact U.S. businesses abroad.
![How the Short-Term Rental Loophole Turns a Passive Property into a Powerful Tax Deduction]()
How the Short-Term Rental Loophole Turns a Passive Property into a Powerful Tax Deduction
Discover how the short-term rental loophole can unlock trapped rental losses for US expats. Real Costa Rica case study reveals strategies to turn passive properties into powerful tax deductions.
![US Tax Residency: Quick Guide For New US Immigrants]()
US Tax Residency: Quick Guide For New US Immigrants
Essential US tax residency guide for immigrants of the most overlooked factors. Substantial presence formula, dual status returns, & tax-saving opportunities.
![Understanding The Impact of US Expatriation]()
Understanding The Impact of US Expatriation
Explore the tax implications of U.S. expatriation, who qualifies, potential costs, and essential steps to renounce your U.S. citizenship.
![Transfer Pricing: A Practical Guide to International Tax Optimization]()
Transfer Pricing: A Practical Guide to International Tax Optimization
Transfer pricing isn't just for big corporations. Small businesses save $1,000s using these international tax strategies. Step-by-step guide + real case studies from McGowin Tax experts.
![The Top 3 Tax Traps U.S. Real Estate Investors Face Buying Foreign Rental Properties]()
The Top 3 Tax Traps U.S. Real Estate Investors Face Buying Foreign Rental Properties
Learn the 3 critical tax traps that cost U.S. real estate investors thousands when buying foreign rental properties. Expert guidance on entity classification, personal use rules, and passive loss limitations from international tax specialist Alex McGowin.
![PFICs: The IRS's worst tax provision]()
PFICs: The IRS's worst tax provision
Discover how to avoid the punitive PFIC tax trap that affects US expats and international investors. Learn identification strategies, mitigation options, and proactive planning approaches from international tax experts.
![Foreign Earned Income Exclusion for Partnerships: An Expat Tax Guide]()
Foreign Earned Income Exclusion for Partnerships: An Expat Tax Guide
US expats can maximize the Foreign Earned Income Exclusion on partnership income. Discover two practical strategies to keep your $125K tax break when working with US-based partners.
![Married to a Non-Resident Alien? What You Need to Know For Filing U.S. Taxes]()
Married to a Non-Resident Alien? What You Need to Know For Filing U.S. Taxes
Married to a non-resident alien and living abroad? Learn how to navigate U.S. tax filing options, including joint returns, Section 6013(g) elections, and smart cross-border strategies to reduce your tax burden.
![The True Cost of Cheap Tax Preparation: Why International Tax Expertise Matters]()
The True Cost of Cheap Tax Preparation: Why International Tax Expertise Matters
What's the risk of using H&R Block or Turbo Tax for your international taxes? Discover the DOs and DONTs of low cost tax prep services for expats & immigrants.
![Does Foreign Earned Income Exclusion Cover Severance Pay and Unemployment Benefits?]()
Does Foreign Earned Income Exclusion Cover Severance Pay and Unemployment Benefits?
Discover whether your severance pay and unemployment benefits qualify for the Foreign Earned Income Exclusion (FEIE). Guide toIRS rulings, qualification requirements, and practical tax filing strategies for U.S. expats.
![Section 1031 Exchange: Tax Tips for Foreign Real Estate Sale]()
Section 1031 Exchange: Tax Tips for Foreign Real Estate Sale
Learn how to minimize taxes when selling foreign rental property through Section 1031 exchanges and foreign tax credits. This practical guide examines US tax implications for international real estate sales, with specific strategies for deferring gains and avoiding double taxation. Essential reading for expats and cross-border investors.
![Offshore Tax Havens: The End of Swiss Banking Secrecy and How FATCA Changed International Banking Forever]()
Offshore Tax Havens: The End of Swiss Banking Secrecy and How FATCA Changed International Banking Forever
"🔍 Lucifer's banker" went to prison, got paid 104 million dollars, Foreign Account Tax Compliance Act (FATCA) cracked down on offshore tax evasion, and Americans are getting dropped from international banks. This video explores the impacts of the FATCA regulations, and gives a glimpse into what the IRS might have up its sleeves next.
![Trump's America First Trade Policy and Section 891: Potential Double Taxation for US Expats]()
Trump's America First Trade Policy and Section 891: Potential Double Taxation for US Expats
While Trump's campaign included promises to end citizenship-based taxation for Americans abroad, his recent trade policy memorandum introduces mechanisms that could potentially do the opposite - implementing double taxation through a rarely-discussed provision of the tax code.
![Residence Based Taxation Act: A Potential Game-Changer for US Expat Taxation]()
Residence Based Taxation Act: A Potential Game-Changer for US Expat Taxation
President Trump promises to end double taxation for expats, Congressman LaHood introduced the "Residence Based Taxation for Americans Abroad Act." Is this the start of expat tax reform, and what will the real impact be for expats?
![Maximizing Foreign Earned Income Exclusion 2025: A Guide for US Expats]()
Maximizing Foreign Earned Income Exclusion 2025: A Guide for US Expats
The Foreign Earned Income Exclusion (FEIE) offers a significant opportunity for U.S. citizens living abroad to reduce their tax burden & avoid double taxation.
![3 Critical US Tax Tips for Investing in Costa Rica]()
3 Critical US Tax Tips for Investing in Costa Rica
Planning to invest in Costa Rica? Don't let US tax compliance catch you off guard. These three critical tax tips will help you avoid penalties, preserve tax benefits, and potentially save thousands in taxes when investing in Costa Rican real estate.
![Does an S-Corp Make Sense for Expats? Understand the Implications]()
Does an S-Corp Make Sense for Expats? Understand the Implications
Is S-Corporation structure suitable for a US citizen operating a business from abroad? Let's dive into the reasons an expat might need one.
![US Tax Optimization for Foreign Real Estate Sales]()
US Tax Optimization for Foreign Real Estate Sales
Learn how late entity classification elections can transform your US tax strategy for foreign real estate + steps for optimized tax outcomes
![Totalization Agreements Explained: Self-Employed US Citizens]()
Totalization Agreements Explained: Self-Employed US Citizens
Learn how totalization agreements help U.S. expats avoid double taxation on self-employment income. Step-by-step guidance, common scenarios, and key strategies
![Delinquent filing options for international tax reporting]()
Delinquent filing options for international tax reporting
If you’ve accidentally missed an international tax filing on your U.S. return, you could face a minimum penalty of $10,000 per missed form! In this video, we’ll guide you through the steps you can take to potentially avoid those penalties and get back into compliance.
![Gifting Assets to a Non-US Spouse: Tax Insights for Expats]()
Gifting Assets to a Non-US Spouse: Tax Insights for Expats
Gift taxes have special considerations for expats with nonresident spouses. Gifting can be a tax strategy, or a necessity of life. What do expats need to know?
![FEIE Impact on Social Security: A Real Tax Question from Expats]()
FEIE Impact on Social Security: A Real Tax Question from Expats
This week, we're addressing a common inquiry about the Foreign Earned Income Exclusion (FEIE) and its impact on US Social Security income. Here's the scenario.
![Tax Court Ruling on IRS Authority to Assess Form 5471 Penalties]()
Tax Court Ruling on IRS Authority to Assess Form 5471 Penalties
Form 5471, required for US persons with ownership in foreign corporations, has been a point of contention due to its associated hefty penalties. The Internal Revenue Code (IRC) Sec. 6038(b) typically mandates a $10,000 USD penalty per form, up to $50,000 USD. However, a recent Tax Court ruling challenges the IRS's authority to impose these penalties.
![Filing with a Nonresident Spouse: Insights for US Expats]()
Filing with a Nonresident Spouse: Insights for US Expats
Exceptions under Sections 6013(g) & (h) allow electing to treat a nonresident spouse as a resident for tax purposes, enabling joint filing. But there's a catch
![IRS Plans a $1,900 Fee Cut to Renounce US Citizenship]()
IRS Plans a $1,900 Fee Cut to Renounce US Citizenship
The trend of U.S. citizenship renunciations has seen a significant increase, particularly influenced by FATCA (Foreign Account Tax Compliance Act) regulations.
![One Last Extension for Expats: The December 15 Tax Deadline]()
One Last Extension for Expats: The December 15 Tax Deadline
With the October 16 deadline approaching for U.S. taxpayers who requested an extension, it's crucial for expats to understand their options. Originally, the extension via Form 4868 was only for filing, not paying taxes.
![FBAR vs Form 8938: Reporting Requirements of Foreign Financial Accounts]()
FBAR vs Form 8938: Reporting Requirements of Foreign Financial Accounts
For US individuals with finances abroad, distinguishing between FBAR & Form 8938 is essential for tax compliance. Let's explore the nuances of these two forms.
![Understanding FBAR: A Crucial Guide for US Expats]()
Understanding FBAR: A Crucial Guide for US Expats
Living abroad offers U.S. expats a world of new experiences. However, amidst these adventures, it's crucial to stay informed about U.S. tax obligations - including the critical but often misunderstood FBAR (Foreign Bank and Financial Accounts Report) requirement.
![Double Counting FBAR Values: A Common Query from Expats]()
Double Counting FBAR Values: A Common Query from Expats
Let's explore how transferring funds between foreign bank accounts affects FBAR reporting obligations.
![Navigating the Maze of US Tax Deadlines | A Guide for Expats]()
Navigating the Maze of US Tax Deadlines | A Guide for Expats
It’s crucial for US expats and residents abroad to stay informed about their filing deadlines & obligations. These are the key dates & details you need to know
![Can Living Abroad Offer US Tax Benefits? Options for Expats]()
Can Living Abroad Offer US Tax Benefits? Options for Expats
Many expats wonder about the tax advantages of living abroad. It’s not a straightforward tax escape, there are certain opportunities for US citizens abroad.
![Do S-Corps Make Sense for Expats? Understanding the Implications.]()
Do S-Corps Make Sense for Expats? Understanding the Implications.
In this week's Real Tax Questions From Real Expats, we examine if an S-Corporation structure is suitable for a US citizen operating a business from abroad.
