Digital Nomad Taxes

If you are an American living in Dubai, the UAE’s zero personal income tax is a real advantage, but it changes how your U.S. taxes work, not whether you owe them. With no UAE tax to credit, the Foreign Earned Income Exclusion is your main shield, and it covers only earned income up to a […]

Wherever you live in Colombia, from Bogota to Medellin to the Caribbean coast, your U.S. tax obligations are the same. U.S. citizens and green card holders must keep filing federal returns and reporting foreign accounts no matter where they live, and IRS collections reach across borders. Ed Parsons, CPA represents Americans throughout Colombia remotely, handling

If you are an American living in Medellin, your U.S. taxes do not go away, and a local Colombian accountant is not built to handle them. What you need is a U.S. CPA who knows the expat issues: the Foreign Earned Income Exclusion, FBAR and Form 8938, PFIC reporting, and the IRS collections side. Ed

Moving to Colombia does not automatically end your U.S. state taxes. Most states keep taxing you until you formally break residency, and a few, like California and New York, are aggressive about holding on. The key concept is domicile, your one true, permanent home. Until you abandon your old state’s domicile and establish a new

For Americans living in Colombia, choosing between Form 2555 (the Foreign Earned Income Exclusion) and Form 1116 (the Foreign Tax Credit) is not a cosmetic preference. The two work differently, and the wrong choice can do more than cost money. An exclusion claimed without meeting the residence tests, or revoked at the wrong time, is

If you already own a Colombian company and you have been filing Form 5471, the real question is not whether you filed, but whether you filed correctly. The IRS treats a Form 5471 that uses the wrong filing category or omits required schedules as if it were never filed at all. That means the $10,000

If you are a U.S. citizen and you open a Colombian S.A.S., the IRS almost always treats it as a foreign corporation that you control, which makes it a controlled foreign corporation, or CFC. That triggers Form 5471, an information return with a penalty that starts at $10,000 per form, per year. It is not

Buying a home or apartment in Colombia is not, by itself, a U.S. taxable event, and real estate you hold in your own name is generally not reported on the FBAR or Form 8938. The U.S. tax issues show up around the purchase, not in it. Rental income is taxable, paying off a peso mortgage

If you are a U.S. person and you inherit money or receive a large gift from family in Colombia, you usually owe no U.S. income tax on it, but you may still have to report it. Gifts and bequests from a foreign individual or estate go on Form 3520 once they top $100,000 in a

If you are a U.S. citizen holding a Colombian investment fund, the IRS almost certainly treats it as a passive foreign investment company, or PFIC. That label triggers one of the harshest regimes in the tax code. By default, your gains are spread across your whole holding period, taxed at the highest ordinary rates, and