Year-End Tax Planning for U.S. Expatriates in Brazil: Sponsored

Amit Ramnani, director of Ipanema Wealth, an independent financial consultancy firm, discusses year-end tax planning techniques for U.S. expatriates.

RIO DE JANEIRO, BRAZIL – Amit Ramnani, director of Ipanema Wealth, reminds U.S. expatriates that they still have time to apply some year-end tax-planning techniques. U.S. citizens who are resident in Brazil face demanding reporting requirements as they have to file income and asset declarations with both the IRS and Receita Federal in Brazil.

Mr. Ramnani explains, “U.S. expats should use this as an opportunity to review their personal circumstances and tax positions and decide whether to accelerate or defer their income and expenses this year.”

Employees may wish to defer the receipt of a 2015 year-end bonus to 2016 if they believe their tax liability may be lower next year. In the same way, self-employed people may choose to delay collection of payment and debts.

Conversely, if one predicts their income and tax liability as being higher in 2016, then consider accelerating income into 2015, which may include the sale of an asset which may result in a large gain.

The same concept applies to expenses, such as mortgage interest and medical expenses, which can be accelerated into 2015 or deferred into 2016.

“I encourage my clients to carry out an annual review, including budgets for retirement, children’s education planning and medical cover to take advantage of tax incentives. Remember that certain tax incentives in Brazil are not recognized by the IRS, so be sure to take professional advice.”

Ramnani continues, “We work with experienced tax advisors and provide a compliant one-stop shop for expatriate tax and financial planning.”