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Talk about being born with a silver spoon in your mouth: Prince Harry's royal baby and Meghan Markle will be particularly bright.
And the US tax authorities will want to know how much is worth this utensil.
This is because the baby will have dual nationality: British because of his father and American of his American mother, whose official title is the Duchess of Susbad.
"When one of the parents is American and resided in the United States. for five years and at least two years after the age of 14, the baby is automatically a citizen, "said David Treitel, founder of American Tax Returns, a consulting firm for American expatriates living in Britain.
"This is the case of Meghan," said Mr. Treitel, noting that this case was a first in the British Royal Family.
Nationality accompanies a multitude of restrictive conditions: like any American who is born, grows up and dies anywhere in the world, Meghan and Harry's child will have to demonstrate year after year to the Internal Revenue Service that his tax status is [19659002] From birth, the money deposited in the banks by the royal parents – anxious to ensure a bright future for their offspring – must be duly reported to the tax specialist.
The same goes for the money that happens if mom and him daddy decides, for example, to let the child follow in the footsteps of his former actress mother to become a star on television or in the cinema.
"Accidental Americans"
Forget about privacy, said Mr. Treitel.The IRS "will learn about more about the couple's wealth "thanks to the couple's and their mother's tax returns. "Much more information will arrive in the United States," he added.
Namely: the IRS will require that any valuable gift donated by non-Americans to Prince Harry's and Meghan's child – and he will be celebrated, will not he? – also be declared active.
"Imagine that the queen is giving the baby fine art books from the royal collection, with paintings by Van Gogh or Miro.If this gift is worth more than $ 100,000, it must be reported," said Mr Treitel.
However, the baby shower gifts that Markle recently received in New York will not have to be declared if they come from American friends, the expert said.
And although the baby and mother will have Laura Saunders, a tax specialist, told The Wall Street Journal that the current forms will take a lot of time for their accountants, but may not cost them a lot of taxes: they may be offset by the duties paid in Great Britain.
The efforts of the tax authorities to closely monitor American expatriates can have serious consequences for people whose only connection with America is that they are simply born there.
This is the case of "accidental Americans", such as thousands of people. of people in France who automatically got US citizenship because they were born in the United States, but left America very young and no longer have any connection to the country.
Fines
Since the enactment of the Foreign Account Tax Compliance Act. in 2010, when the criterion of nationality was replaced by that of fiscal domicile, these people are obliged to declare their income to the US tax authorities and, in some cases, spit money.
Many of these people left the United States while they were very young. Last year, the Association of Accidental Americans who brought them together asked President Donald Trump to find a solution to their dilemma.
Their status can be a delicate subject. If they refuse to play ball with the US tax authorities, their home banks can be punished. These institutions may therefore deny them services such as bank accounts and mortgages.
To a lesser extent, the British royal family can not escape its US tax obligations either: an erroneous tax return can result in heavy fines.
But there is a solution. avoid headaches for the royal couple's accountants: Meghan can give up her American citizenship. However, even if she did, one would still have to file a tax return for the child up to the age of 18.
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