Sometimes our Israeli clients want to buy real estate in America and open a bank account in their own name, by not opening an American corporation. If the client wants to manage the real estate in his own name in America as an Israeli, here’s what we can do:

Not-for-profit organizations may be registered in America and operate here in Eretz Yisrael. Sometimes these are referred to as “Friends of . . .” organizations. Not-for-profits registered in America traditionally include Shuls, Yeshivas, Jewish outreach organizations, and companies that help people make Aliyah among others.

Whether you are self-employed, an employee, or own a company in Israel your reporting to America will have to be done. American citizens and permanent lawful residents (formerly green card holders) have to report and pay. Also, Israelis who buy real estate, invest in partnerships, or own companies in America have to watch their American tax responsibilities. There are so many nuances it is very important to have a professional do your tax and accounting. Our licensed CPA can assist you in meeting these responsibilities. The FINCEN (financial crimes network) also requires reports for Americans. The consequences of not filing can cost you half of your assets, so don’t delay! Check with us now to determine what you owe, what you must file, and when are your due dates.

Some Israelis find the plethora of American investment markets attractive but don’t know where to turn. If you would like assistance deciding whether to buy real estate, open a company, or hold liquid assets in the states these decisions are best made with our experienced advice and tax help. Short-sighted decisions rarely bear fruit, but rather consulting with our American CPA and Israeli CPAs can double your perspective and provide the double edge your financial decision needs to prosper. Americans who live here in Israel many times keep their financial ties to the states and want someone local here to advise them rather than have to fumble with the time differences. Our American division has strong ties to the American investing world and can connect you.

Whether you are an Israeli running a company and paying employees in America, or an American running a company abroad and paying employees here in Eretz Yisrael, the currency exchange and tax responsibilities make payroll challenging. Our company is set up to handle both reporting and paying of American payroll including transfer of currency and tax reporting. Some people get confused between making payments in America to vendors and paying employees. What is the difference? Paying wages (payroll) can reduce your income tax more quickly and satisfy authorities in other ways, but payroll involves quarterly payments to federal and state as well as unemployment taxes and reports. Payroll tax is more avidly collected than income tax, because authorities can go after company owners for this while company owners are usually protected against collection of their company’s income tax. This is because some of the payroll tax is withheld from the employees, and the client has a fiduciary responsibility to make sure that money is sent to each government agency. It’s different when a company owed income tax, but when a company withholds money from one of its employees and the employee gets credit for those taxes, the American government takes that responsibility more seriously.

In 2017, Americans who own Israeli companies were forced to re-evaluate their tax positions. If you live here in Eretz Yisrael and own a business, while maintaining your American citizenship or residency, you should have us look at your 2017 American income tax return. We do that for no charge. Then, if there is a responsibility we will do the work to bring you into compliance. Trump Law advising can save you thousands, tens or hundreds of thousands of dollars. A competent CPA with current credentials and avid proficiencies is your guide to the Tax Cuts and Jobs Act. Other CPAs in Israel call us to consult on their clients anonymously for a rate. Keep your clients and insure their compliance by hiring our firm for a few hours to consult on Trump Law for your business owners. Or, you may send us your 2017 American income tax return to have a look and verify it was done accurately. We will advise you if further work must be done.

The IRS finalized regulations on Wednesday on the Sec. 965 transition tax, the “Transition Tax”, which was added to the Code by the law known as the Tax Cuts and Jobs Act. Sec. 965 applies to the last tax year of a deferred foreign income corporation (DFIC) that begins before Jan. 1, 2018.

New American tax law is not so confusing! Our Israeli clients who are corporation owners, who also happen to be American citizens (or travel frequently to America) already know we have American tax responsibilities. Now we have an increased possibility of American corporate taxes, but do not worry!

First of all, Israelis who are American citizens or residents must report all their income to America, even if they don’t live there. Some Israelis forget this and do not file an American tax return while they live and work here in Eretz Yisrael.