Tax Strategy Scan: 8 Tips for Clients Moving Overseas

Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.

8 tax tips you need to know before moving abroad: U.S. citizens living overseas must still file federal tax returns if they meet IRS filing requirements, according to the Huffington Post. The strategies in this article can help to enlighten clients who are not aware of the potential U.S. expat tax issues they could face when moving abroad. -- Huffington Post

Examining estate and gift issues in cross-border tax planning: Taxes are a hot topic for spouses who each have lived on one side of an international border, particularly when the marriage involves U.S. and Canadian citizens, according to Buffalo Business First. Gift and estate taxes are among the most common concerns for multinational families. -- Buffalo Business First

The tax consequences of whole life insurance: There are tax advantages and disadvantages to buying whole life insurance policies which advisers can point out to clients, according to NerdWallet. There is, for example, a tax-free death benefit for beneficiaries. Plus, if managed correctly, whole life policies can provide tax-free loans to their owners. The downsides include a tax hit on polices that are allowed to lapse, or which are surrendered. -- NerdWallet

How to handle taxes on company stock: Restricted stock units that clients receive from employers are considered income and are taxed when they become vested, according to Kiplinger. Clients may get bumped to a higher tax bracket as a result of the RSUs’ value and pay capital gains tax if they sell at a price other than their value at the time of vesting. -- Kiplinger