Most individuals who move to the US benefit by delaying the date they become US tax residents. With the correct advice, US tax residency can legitimately be delayed through a variety of processes, sometimes for a number of years.
Aside from delaying the date of US tax residency, it is essential for tax planning and tax return purposes that the individual knows in advance the date on which his tax status will change.
On the date an individual’s tax status changes to US tax resident, the tax status of his assets (for example, interests in foreign companies and trusts) is effectively reclassified – with the result the tax rules applicable both to the individual and his assets change substantially.
The transition from non-resident to normal US tax status requires careful planning from practitioners experienced in this area. Many foreign corporate and trust structures are undesirable from the US tax perspective, and typically need to be modified early in the transitionary period.
We have the experience to advise you on delaying the change to US tax residency, planning for the change, and preparing your US tax returns for the transitionary period.