- relocation, tax
Some advice from Mette Müller, Partner, PwC, People & Organisation – Mobility and Leah LeLoup, International Tax Manager, Hutchinson & Bloodgood, California, from our Visa and Pre-Immigration Tax planning meeting Aug. 24:
There are a wide variety of issues to talk with your Danish tax advisor about before you leave Denmark for the US:
PwC generally takes its clients through a forward-looking discussion about their plans and goals for the future, in order to avoid unforseen problems when away from or returning to Denmark. This includes issues such as whether your employee will/should rent out or sell his/her home in Denmark, the date of arrival in US to ensure all issues are cleared up in Denmark first, and discussion of the right timing of Danish holiday pay and bonuses, since the employee will be taxed on worldwide income once they become a resident of the US.
Leah LeLoup from Hutchinson & Bloodgood, California, complemented the discussion with the view from the US, with a presentation called “10 Things You Should Know Before you Move to the US”. (available to members on request). These included issues such as: the risk of foreign exchange gain on payoff of mortgage, if you sell your Danish home; the fact that US federal and state taxes combined may turn out to be more than taxes in Denmark; the sheer complexity of the US tax forms, due to the need to calculate Alternative Minimum Tax in addition to normal tax; and the burdensome way the US taxes non-US mutual funds (you should get rid of them before becoming taxable in US!).
Leah gave a great example of the risk of foreign exchange gain on selling your house, here:
Let us know if you have questions or would like to learn more about this complex area!