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Since the royal couple announced their pregnancy last October, all eyes have turned to Meghan and her nascent hump – and it seems that even the palace's accountants are interested in it.
As a US citizen, Meghan and her baby – who will occupy seventh on the British throne – will have to pay US taxes, which could potentially open notoriously private royal accounts at the Internal Revenue Service (IRS).
"The United States has – uniquely among the nations – a citizenship-based taxation system, as long as Meghan is a citizen of the United States, it is taxed," said David Treitel, founder of American Tax Returns Ltd. , which provides tax advice to American expatriates.
The law means that US tax inspectors could examine the royal wealth of Harry and Meghan, as well as the income of their newborn child.
"The baby is born of an American citizen and this baby, little boy or girl, who will come in the coming weeks will automatically become a US citizen simply because his mother will be," Treitel told CNN. "There is no other precedent among the members of the royal family who are Americans, so no one else has ever faced this situation before."
"The queen has to sit there and her counselors have to sit and think: if I give Meghan a tiara, if the baby uses a beautiful silver rattle that was used by Queen Victoria, how much is it worth "It's a tough question, it's not easy," Treitel said.
Meghan will not only have to declare the gifts, but if she plans to sell any of them, she would be taxed at the higher value – and with her name, the value gain is likely to increase. to be important.
Although all of this can create a big financial problem for the royal couple, it will not be a surprise. Treitel thinks that Harry and Meghan will have considered potential tax issues, "long before their marriage, when they were dating, just in case a baby would come because they knew that if he had a child, he would be American. "
The only way for Meghan to avoid paying US taxes would be to give up her US citizenship once she became a British citizen. However, even if she does, the couple's baby will still be liable to US taxes up to the age of 18.
Treitel believes that from the birth of the baby royal, he will inherit investments generating taxable and taxable income in the United States.
"One could expect that the queen would come from a well-to-do family, Diana, from a wealthy family, one would expect that they would have set aside investments for future generations, presumably for future anonymous children and grandchildren, etc., "says Treitel.
In addition, the baby will likely receive a trust fund that will allow the royal family to transfer money along the royal line. According to Treitel, this would correspond to the description of a foreign trust, in which Americans receive money from a trust fund established abroad and can therefore be taxed in the United States .
The minefield of the US tax system means that Harry and Meghan's baby will probably create a lot of paperwork for the royal family's accountants.
Bianca Britton from CNN contributed to this story.
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