Substantial Presence Test

Jim McLeod May 24, 2012

I was at a meeting last week with a US tax lawyer and accountant and I got an education on property ownership in the USA. After this meeting I am of the opinion that anyone buying property in the US needs to speak to experts on how to take ownership of property and any estate tax issues. The federal government in the USA uses a Substantial Presence Test to determine whether you become a resident for tax purposes if you have 31 days of presence. There formula is 100% of the days in the current year, one third for the preceding year, and one sixth for the second preceding year. Clear as mud right. Go see an expert!!

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