Many non-resident alien individuals from around the world hope to invest and reside in the United States. The U.S., which is one of the few countries that taxes its citizens and residents based upon their worldwide income, also taxes non-resident aliens on income derived from within the U.S., including income from a U.S. trade or business and income from certain investments in U.S. property. Very often, immigrating residents are unfamiliar with the country’s tax laws, including what they will face upon obtaining their resident status. This lack of knowledge often leads immigrants to pay unnecessary taxes and exposes them to greater liabilities. In a two-hour LIVE Webcast, a panel of key thought leaders and practitioners assembled by The Knowledge Group will offer an overview and discussion of pre-immigration tax planning. Join us to hear some of the country’s leading attorneys and skilled tax professionals give advice on federal tax policies, regulations, and requirements for residence applicants. Speakers will also provide a checklist of the best practices to avoid common tax problems. Some of the major topics that will be covered in this course are: Immigration and Non-Immigration Options for Highly Skilled Workers and Wealthy International Investors Leading to Tax Planning U.S. Federal Government Major Taxes Pre-Immigration Tax Planning: An Overview Planning to Reduce Future U.S. Income Tax Planning to Reduce Future U.S. Estate & Gift Tax Possible Sanctions for Non-Compliance To view the webcast go to this link: To learn more about the webcast please visit our website: http://theknowledgegroup.org

1. Speaker Firms and Organization:
Seltzer | Caplan | McMahon | Vitek
John I. Forry
Of Counsel and Practice Area Leader for
International Finance, Investment & Tax
Thank you for logging into today’s event. Please note we are in standby mode. All Microphones will be muted until the event
starts. We will be back with speaker instructions @ 02:55pm. Any Questions? Please email: info@theknowledegroup.org
Group Registration Policy
Please note ALL participants must be registered or they will not be able to access the event.
If you have more than one person from your company attending, you must fill out the group registration form.
We reserve the right to disconnect any unauthorized users from this event and to deny violators admission to future events.
To obtain a group registration please send a note to info@theknowledgegroup.org or call 646.202.9344.
Presented By:
October 25, 2016
1
Partner Firms:
Archer & Greiner, P.C.
Kenneth E. Ahl
Partner
MC Law Group
Margo Chernysheva, Esq.
Founding Partner
Frank Hirth plc
Eric Collins
Business Tax Director
Withers Worldwide
Richard S. LeVine
Of Counsel

2. October 25, 2016
2
 Please note the FAQ.HELP TAB located to the right of the main presentation. On this page you will find answers to the top questions asked by
attendees during webcast such as how to fix audio issues, where to download the slides and what to do if you miss a secret word. To access this
tab, click the FAQ.HELP Tab to the right of the main presentation when you’re done click the tab of the main presentation to get back.
 For those viewing the webcast on a mobile device, please note:
o These instructions are for Apple and Android devices only. If you are using a Windows tablet, please follow the instructions for viewing
the webcast on a PC.
o The FAQ.HELP TAB will not be visible on mobile devices.
o You will receive the frequently asked questions & other pertinent info through the apps chat window function on your device.
o On Apple devices you must tap the screen anywhere to see the task bar which will show up as a blue bar across the top of the screen.
Click the chat icon then click the chat with all to access the FAQ’s.
o Feel free to submit questions by using the “questions” function built-in to the app on your device.
o You may use your device’s “pinch to zoom function” to enlarge the slide images on your screen.
o Headphones are highly recommended. In the event of audio difficulties, a dial-in number is available and will be provided via the app’s
chat function on your device.

3. October 25, 2016
3
 Follow us on Twitter, that’s @Know_Group to receive updates for this event as well as other news and pertinent info.
 If you experience any technical difficulties during today’s WebEx session, please contact our Technical Support @ 866-779-3239. We will post the
dial information in the chat window to the right shortly and it’s available in the FAQ.Help Tab on the right. Please redial into the webcast in case of
connectivity issue where we have to restart the Webex event.
 You may ask a question at anytime throughout the presentation today via the chat window on the lower right hand side of your screen. Questions
will be aggregated and addressed during the Q&A segment.
 Please note, this call is being recorded for playback purposes.
 If anyone was unable to log in to the online webcast and needs to download a copy of the PowerPoint presentation for today’s event, please send
an email to: info@theknowledgegroup.org. If you’re already logged in to the online Webcast, we will post a link to download the files shortly and it’s
available in the FAQ.Help Tab

4. October 25, 2016
4
 If you are listening on a laptop, you may need to use headphones as some laptops speakers are not sufficiently amplified enough to hear the
presentations. If you do not have headphones and cannot hear the webcast send an email to info@theknowledgegroup.org and we will send you
the dial in phone number.
 About an hour or so after the event, you'll be sent a survey via email asking you for your feedback on your experience with this event today - it's
designed to take less than two minutes to complete, and it helps us to understand how to wisely invest your time in future events. Your feedback is
greatly appreciated. If you are applying for continuing education credit, completions of the surveys are mandatory as per your state boards and
bars. 6 secret words (3 for each credit hour) will be given throughout the presentation. We will ask you to fill these words into the survey as proof
of your attendance. Please stay tuned for the secret word. If you miss a secret word please refer to the FAQ.Help tab to the right.
 Speakers, I will be giving out the secret words at randomly selected times. I may have to break into your presentation briefly to read the secret
word. Pardon the interruption.

5. Partner Firms:
October 25, 2016
5
Founded in 2009, MC Law Group is a boutique woman owned law firm in Las Vegas, Nevada with three
attorneys and 12 support staff specializing in immigration law.
Clients from all over the world, many of whom do not speak English, rely on the advice of MC Law Group
as they apply for family, work, and investor visas, permanent residency, and U.S. citizenship through
naturalization. MC Law Group’s entire legal staff is qualified and ready to serve new clients, both
individuals and businesses, wanting skillful legal counsel and advice on various matters of American
Immigration Law. With a staff that can communicate with and counsel clients in English, Armenian,
Russian, Spanish, and Tagalog, MC Law Group is a unique and capable provider of immigration related
legal counsel.
Some of MC Law Group’s most popular practice areas are business immigration, investor visas,
immigration court, waivers of inadmissibility, fiancée visas, and family-sponsored immigration. The
attorneys of MC Law Group have the skills that clients want and the experience to meet and exceed
expectations. Whether they’re foreign students wanting to study in the U.S., investors who want to invest
in the U.S. economy, business professionals who want to work in the U.S., or entertainers/performers who
want to display their talents for an American audience, MC Law Group’s attorneys and support staff can
help foreign nationals reach their American Dream. MC Law Group can also help family members of
current visa holders get their own visas so they can visit their loved ones in the U.S.
Since its founding in 1948, Seltzer Caplan McMahon Vitek has dedicated
itself to serving as advocates for their clients and the community. As one of a
very few San Diego-founded, mid-sized law firms, their clients can expect
personal communication and trustworthy legal counsel from some of the
most experienced attorneys in San Diego.
Seltzer Caplan McMahon Vitek thrives on providing excellent client service
to businesses, families and individuals. They scale their services to meet the
particular goals of each client by communicating directly and frequently with
their clients, and staying active and hands-on in all matters. They constantly
strive to ensure that their attorneys are always accessible, responsive and
committed to taking the best approach to achieve meaningful results and at
the same time provide great value for their clients. Their attorneys are
committed to providing their clients with a full range of legal services at the
highest level of quality regardless of the complexity of the legal issue.

6. Partner Firms:
October 25, 2016
6
Archer & Greiner is a full service, regional law firm with a reputation for
providing the highest quality, result-driven legal services to corporate and
individual clients. One of the largest law firms in the Delaware Valley and
among the five largest in New Jersey, Archer & Greiner serves businesses
and individuals throughout the region and in an increasing number of other
states and jurisdictions. With a network of regional offices from Philadelphia
to New Jersey, the firm has more than 175 lawyers practicing in all major
legal disciplines including corporate, labor, commercial litigation, family, real
estate, and many more.
Established in 1975, and guided by a passion for building lasting
relationships with their clients based on trust, understanding and technical
excellence, they use their in-depth knowledge of US and UK tax jurisdictions
to advise their clients through their complex tax issues, for both the present
and the future.

7. Partner Firm:
October 25, 2016
7
Withers LLP is an international law firm headquartered in London, United
Kingdom, with offices in the United States, Europe, Asia, and the Caribbean.
Withers specializes in tax, trust and estate planning, as well as litigation,
employment, family law, and other legal issues facing high-net-worth
individuals. Withers represents a significant number of the wealthiest
individuals and families in the United States, Europe and Asia.

8. Brief Speaker Bios:
Margo Chernysheva, Esq.
Margo Chernysheva (margo@mclawlv.com) Founding Partner of MC Law Group based in Las Vegas, NV since 2009. She
concentrates on business and investment-based immigration cases. Mrs. Chernysheva also does removal defense and federal court
representation in Nevada. She has over 10 years of corporate contract negotiation experience specializing in pharmaceutical and
biotech industry. Mrs. Chernysheva received pro bono award from Legal Aid of Nevada in 2010-2015. She is a mediator for
Neighborhood Justice Center of Southern Nevada and has been appointed by the Nevada Supreme Court as FMP mediator.
October 25, 2016
8
John I. Forry
Mr. Forry is US legal counsel in international finance, investment and taxation. He is also a university professor in international
finance, investment and taxation at US, Asian, European and Latin American law and business schools.
Mr. Forry has served on the Advisory Group to the US Commissioner of Internal Revenue and on numerous professional organization
committees and projects. He has authored or co-authored six books and approximately 50 articles on international finance, investment
and taxation.
Kenneth E. Ahl
Mr. Ahl’s practice concentrates in the area of taxation and includes business and individual tax planning, estate planning, trust and
estate administration and tax litigation. He represents numerous clients in matters involving international taxation, including tax
planning for non-resident aliens, dual citizens, green card holders and U.S. citizens residing abroad. He has extensive experience in
U.S. tax issues involving foreign estates and trusts, and the use of tax treaties to avoid the double taxation of income and death taxes.
He frequently works with immigration lawyers to plan for the tax issues of non U.S. citizen clients both coming to and exiting from the
United States.

9. Brief Speaker Bios:
Eric Collins
Eric’s specialist area is the taxation of alternative investments, in particular private equity partnerships with UK and/or US partners,
and offering withholding tax advice in the wake of the US Foreign Account Tax Compliance Act (FATCA). Eric has also gained
extensive knowledge of the US Federal income taxation of international transactions having worked with individuals and businesses
inbound to and outbound from the US.
October 25, 2016
9
Richard S. LeVine
Richard has a practice focusing on cross-border estate, gift and income tax planning for owners of privately held companies and other
high-net-worth U.S. and foreign individuals.
He focuses on pre-immigration and pre-expatriation tax planning, offshore trusts and foundations deferred compensation planning for
fund manager and structures involving life insurance. He has been heavily involved in advising clients on the IRS Voluntary Disclosure
programs.
► For more information about the speakers, you can visit: https://theknowledgegroup.org/event-homepage/?event_id=2073

10. Many non-resident alien individuals from around the world hope to invest and reside in the United States. The U.S., which is one of the
few countries that taxes its citizens and residents based upon their worldwide income, also taxes non-resident aliens on income
derived from within the U.S., including income from a U.S. trade or business and income from certain investments in U.S. property.
Very often, immigrating residents are unfamiliar with the country’s tax laws, including what they will face upon obtaining their resident
status. This lack of knowledge often leads immigrants to pay unnecessary taxes and exposes them to greater liabilities.
In a two-hour LIVE Webcast, a panel of key thought leaders and practitioners assembled by The Knowledge Group will offer an
overview and discussion of pre-immigration tax planning. Join us to hear some of the country’s leading attorneys and skilled tax
professionals give advice on federal tax policies, regulations, and requirements for residence applicants. Speakers will also provide a
checklist of the best practices to avoid common tax problems.
Some of the major topics that will be covered in this course are:
• Immigration and Non-Immigration Options for Highly Skilled Workers and Wealthy International Investors Leading to Tax
Planning
• U.S. Federal Government Major Taxes
• Pre-Immigration Tax Planning: An Overview
• Planning to Reduce Future U.S. Income Tax
• Planning to Reduce Future U.S. Estate & Gift Tax
• Possible Sanctions for Non-Compliance
October 25, 2016
10

11. Featured Speakers:
October 25, 2016
11
SEGMENT 1:
Margo Chernysheva, Esq.
Founding Partner
MC Law Group
SEGMENT 2:
John I. Forry
Of Counsel and Practice Area Leader for
International Finance, Investment & Tax
Seltzer | Caplan | McMahon | Vitek
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
SEGMENT 4:
Eric Collins
Business Tax Director
Frank Hirth plc
SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide

12. Introduction
Margo Chernysheva (margo@mclawlv.com) Founding Partner of MC Law Group based in Las Vegas, NV since 2009. She
concentrates on business and investment-based immigration cases. Mrs. Chernysheva also does removal defense and
federal court representation in Nevada. She has over 10 years of corporate contract negotiation experience specializing in
pharmaceutical and biotech industry. Mrs. Chernysheva received pro bono award from Legal Aid of Nevada in 2010-2015.
She is a mediator for Neighborhood Justice Center of Southern Nevada and has been appointed by the Nevada Supreme
Court as FMP mediator. Mrs. Chernysheva serves as arbitrator and mediator for the Nevada State Bar Fee Dispute
Committee. She is fluent in three languages. Mrs. Chernysheva volunteers as a chair for Practice Management and Ethics
committees for AILA’s Nevada and California Chapters as well as NMD liaison for NV Chapter. She is a graduate of UNLV
Boyd School of Law and is licensed to practice in Nevada and California.
October 25, 2016
12
SEGMENT 1:
Margo Chernysheva, Esq.
Founding Partner
MC Law Group

13. Immigration and Non-Immigration Options for Visitors, Highly
Skilled Workers and International Investors
• B-1 Frequent Business Visitors/ Visa Waiver
• L-1A Intra-company executives
• H-1B Visa
• E-2 Treaty Investor
• EB-5 International Investor
October 25, 2016
13
SEGMENT 1:
Margo Chernysheva, Esq.
Founding Partner
MC Law Group

14. B-1/B2 Frequent Business Visitors/ Visa Waiver
• Qualifications for both B1 and Visa Waiver
• The purpose of the trip is to enter the United States for business of a legitimate nature or leisure
• Traveler plans to remain for a specific limited period of time
• Traveler has the funds to cover the expenses of the trip and the stay in the United States
• Traveler has a residence outside the United States in which you have no intention of abandoning, as well as other binding ties which will ensure
your return abroad at the end of the visit
• Traveler is otherwise admissible to the United States
* Visa Waiver only – must be a citizen of a country US has non-visa short-term entry agreement
• Why B1?
– Entering to the US to conduct meetings and training
– Consulting with business associates
– Traveling for a scientific, educational, professional or business convention, or a conference on specific dates
– Settling an estate
– Negotiating a contract
– Participating in short-term training
– Transiting through the United States: certain persons may transit the United States with a B-1 visa
– Deadheading: certain air crewmen may enter the United States as deadhead crew with a B-1 visa
• Allowed Length of Stay
– B1/B2 visa -- Up to 6 months with an allowed extension (additional application required) for another 6 months
– Visa Waiver – up to 90 days on each stay
– Canadians allowed up to 6 months on their visa waiver
October 25, 2016
14
SEGMENT 1:
Margo Chernysheva, Esq.
Founding Partner
MC Law Group

15. H-1B Employee Visa
U.S. businesses use the H-1B visa program to employ foreign workers in specialty occupations that require the theoretical or
practical application of a body of highly specialized knowledge, including but not limited to scientists, engineers, or computer
programmers
• Qualifications (at least one of the criteria listed below)
– Have completed a U.S bachelor’s or higher degree required by the occupation
– Hold a foreign degree that is equivalent to a U.S. bachelor’s or higher degree
– Hold an unrestricted state license, registration, or certification which authorizes you to fully practice the specialty
– Have education, training, or progressively responsible experience in the specialty that is equivalent to the completion of
such a degree, and have recognition of expertise in the specialty through progressively responsible positions directly
related to the specialty.
• Why B1?
– Your spouse and unmarried children under 21 years of age may seek admission in the H-4 nonimmigrant classification.
Beginning May 26, 2015, certain H-4 dependent spouses of H-1B nonimmigrants can file for Employment Authorization,
as long as the H-1B nonimmigrant has already started the process of seeking employment-based lawful permanent
resident status
– Your employer will be liable for the reasonable costs of your return transportation if your employer terminates you before
the end of your period of authorized stay
• Allowed Length of Stay
– There’s a limit of 65,000 Visas per year, usually selected through a lottery
– you may be admitted for a period of up to three years. Your time period may be extended, but generally cannot go
beyond a total of six years.
October 25, 2016
15
SEGMENT 1:
Margo Chernysheva, Esq.
Founding Partner
MC Law Group

16. L-1A Intra-company executives
The L-1A nonimmigrant classification enables a U.S. employer to transfer an executive or manager from one of its affiliated foreign offices to
one of its offices in the United States. This classification also enables a foreign company which does not yet have an affiliated U.S. office to
send an executive or manager to the United States with the purpose of establishing one.
• Qualifications for Employer
– Have a qualifying relationship with a foreign company and currently be or will be, doing business as an employer in the United
States and in at least one other country directly or through a qualifying organization for the duraction of the beneficiary’s stay in
the U.S. as an L-1.
• Qualifications for Employee
– Generally have been working for a qualifying organization abroad for one continuous year within the three years immediately
preceding his or her admission to the U.S; and be seeking to enter the U.S to provide service in an executive or managerial
capacity for a branch of the same employer or one of its qualifying organizations.
• Why L-1?
– Spouses of L-1 workers may apply for work authorization by filing Application for Employment Authorization . If approved, there
is no specific restriction as to where the L-2 spouse may work.
– The transferring employee may be accompanied or followed by his or her spouse and unmarried children who are under 21
years of age. Such family members may seek admission in L-2 nonimmigrant classification and, if approved, generally will be
granted the same period of stay as the employee.
• Allowed Length of Stay
– Qualified employees entering the United States to establish a new office will be allowed a maximum initial stay of one year. All
other qualified employees will be allowed a maximum initial stay of three years. For all L-1A employees, requests for extension
of stay may be granted in increments of up to an additional two years, until the employee has reached the maximum limit of
seven years
October 25, 2016
16
SEGMENT 1:
Margo Chernysheva, Esq.
Founding Partner
MC Law Group

17. E-2 Treaty Investor
The E-2 nonimmigrant classification allows a national of a treaty country (a country with which the United States maintains a treaty of commerce and
navigation) to be admitted to the United States when investing a substantial amount of capital in a U.S. business. Certain employees of such a
person or of a qualifying organization may also be eligible for this classification
• Qualifications for Investor
– Be a national of a country with which the United States maintains a treaty of commerce and navigation
– Have invested, or be actively in the process of investing, a substantial amount of capital in a bona fide enterprise in the United States
– Be seeking to enter the United States solely to develop and direct the investment enterprise. This is established by showing at least
50% ownership of the enterprise or possession of operational control through a managerial position or other corporate device.
– An investment is the treaty investor’s placing of capital, including funds and/or other assets, at risk in the commercial sense with the
objective of generating a profit. The capital must be subject to partial or total loss if the investment fails. The treaty investor must show
that the funds have not been obtained, directly or indirectly, from criminal activity.
• Qualifications for the Employee of a Treaty Investor
– Be the same nationality of the principal alien employer (who must have the nationality of the treaty country)
– Either be engaging in duties of an executive or supervisory character, or if employed in a lesser capacity, have special qualifications.
– If the principal alien employer is not an individual, it must be an enterprise or organization at least 50% owned by persons in the United
States who have the nationality of the treaty country. These owners must be maintaining nonimmigrant treaty investor status. If the
owners are not in the United States, they must be, if they were to seek admission to this country, classifiable as nonimmigrant treaty
investors.
• Allowed Length of Stay
– Qualified treaty investors and employees will be allowed a maximum initial stay of two years. Requests for extension of stay may be
granted in increments of up to two years each. There is no maximum limit to the number of extensions an E-2 nonimmigrant may be
granted. All E-2 nonimmigrants, however, must maintain an intention to depart the United States when their status expires or is
terminated.
October 25, 2016
17
SEGMENT 1:
Margo Chernysheva, Esq.
Founding Partner
MC Law Group

18. EB-5 International Investor
Congress created the EB-5 Program in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors
• Qualifications
– All EB-5 investors must invest in a new commercial enterprise, which is a commercial enterprise:
• Established after Nov. 29, 1990, or Established on or before Nov. 29, 1990, that is:
Purchased and the existing business is restructured or reorganized in such a way that a new commercial enterprise
results, or Expanded through the investment so that a 40-percent increase in the net worth or number of employees
occurs
– Create or preserve at least 10 full-time jobs for qualifying U.S. workers within two years (or under certain circumstances, within
a reasonable time after the two-year period) of the immigrant investor’s admission to the United States as a Conditional
Permanent Resident.
– General. The minimum qualifying investment in the United States is $1 million.
– Targeted Employment Area (High Unemployment or Rural Area). The minimum qualifying investment either within a high-
unemployment area or rural area in the United States is $500,000.
• Why EB-5?
– Since you will be obtaining a legal permanent resident card if approved you will not be limited on the time you spend in the U.S.
. You will be granted conditional resident status for 2 years which later after the two year mark can be removed by filling form I-
829.
– Your spouse and unmarried children under the age of 21 may be admitted to the U.S. with you on a two-year conditional
period. If your I-829 petition to remove conditions is approved, the conditions will be removed from your spouse and children’s
Green Card status. As a lawful permanent residents (Green Card holders) your spouse and children will be authorized to work
or attend school in the U.S.
October 25, 2016
18
SEGMENT 1:
Margo Chernysheva, Esq.
Founding Partner
MC Law Group

19. Introduction
Mr. Forry is US legal counsel in international finance, investment and taxation. He is also a university professor in
international finance, investment and taxation at US, Asian, European and Latin American law and business schools.
Mr. Forry has served on the Advisory Group to the US Commissioner of Internal Revenue and on numerous professional
organization committees and projects. He has authored or co-authored six books and approximately 50 articles on
international finance, investment and taxation.
He is a graduate of Amherst College and Harvard Law School.
October 25, 2016
19
SEGMENT 2:
John I. Forry
Of Counsel and Practice Area Leader for
International Finance, Investment & Tax
Seltzer | Caplan | McMahon | Vitek

20. Talking Points
• Alternatives to Obtain Legal Permanent Residence in the U.S.
• Basic Steps & Timing for Different Alternatives
• Compare options and their cons and pros
• Effects on U.S. Residence Subject to Worldwide U.S. Income Tax
• Effects on U.S. Domicile Subject to Worldwide U.S. Estate & Gift Tax
• Planning to Reduce Future U.S. Income Tax
• Accelerating Foreign Income
• Restructuring Offshore Entities
• Use of Trusts
• Other Steps
• Correcting for Inadvertent Residence
• Planning to Reduce Future U.S. Estate & Gift Tax
• Transfers of Foreign Assets
• Use of Trusts
• Other Steps
• Possible Sanctions for Non-Compliance
October 25, 2016
20
SEGMENT 2:
John I. Forry
Of Counsel and Practice Area Leader for
International Finance, Investment & Tax
Seltzer | Caplan | McMahon | Vitek

21. Introduction
Mr. Ahl’s practice concentrates in the area of taxation and includes business and individual tax planning, estate planning, trust
and estate administration and tax litigation. He represents numerous clients in matters involving international taxation, including
tax planning for non-resident aliens, dual citizens, green card holders and U.S. citizens residing abroad. He has extensive
experience in U.S. tax issues involving foreign estates and trusts, and the use of tax treaties to avoid the double taxation of
income and death taxes. He frequently works with immigration lawyers to plan for the tax issues of non U.S. citizen clients both
coming to and exiting from the United States. He is very experienced in dealing with the special tax needs of U.S. citizens and
green card holders residing abroad. He has counseled numerous taxpayers on Offshore Account Voluntary Disclosure Initiatives.
Mr. Ahl’s law career started with positions at the Department of State and at the National Office of the Internal Revenue Service,
where he obtained a broad range of experience in international and tax issues. At the State Department, he determined issues of
citizenship and dual nationality. At the IRS, he issued rulings and technical opinions dealing with numerous tax issues, including
tax treaties, capital gains and sales and exchanges of property. He has an in-depth knowledge of the Internal Revenue Code and
its regulations as well as in matters of state and local taxation. He has extensive experience in practicing before the IRS including
the audit, appeal and collection process. He is a graduate of the University of Virginia Law School and is admitted to practice law
in Pennsylvania, Virginia and The District of Columbia.
October 25, 2016
21
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.

22. PRE-IMMIGRATION TAX PLANNING
The Knowledge Group
U.S. Income Taxes and Estate and Gift Taxes
22
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
October 25, 2016

23. I. When does an Immigrant become subject to U.S. income tax?
A. Important to know immigrant’s prior U.S. history
• Has he lived in the U.S. before? When?
• Exact dates of physical presence in the U.S.
• What kind of visa did he have?
• Ever filed a U.S. tax return? What kind? When?
• Does he already own assets in U.S.? Has he performed
services here?
23
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
October 25, 2016

24. B. Two types of U.S. income tax returns, Non-Resident 1040NR and an ordinary resident
1040 return.
1. 1040 NR – Non Resident Return
• Reports income earned in the U.S. by a non U.S. citizen and non resident
• Two parts of a 1040 NR
a. Effectively Connected Income for active business or for services performed in
the U.S. includes wages, self-employment income, pension income arising
from working in the U.S., rents from active management in the U.S.
• Effectively connected income taxed at graduated rates
• Deductions are allowed for expenses connected with ECI
• Personal exemptions allowed, no standard deduction allowed
24
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
October 25, 2016

25. b. Not Effectively Connected Income
• Generally portfolio type income – dividend, interest, investment income – gross
income is subject to withholding tax of 30% unless exception applies or lower tax
treaty rate available
• Many tax treaties provide 15% rate for dividends, or 5% or 0% rate on interest –
Important to claim benefit of treaty – file W-8BEN with Payer to claim lower
withholding rate
• Social Security Payments x 85%
• Not subject to tax:
• Capital gains (except on U.S. real estate sales)
• Bank interest from accounts and CDs in U.S. banks, registered debt
instruments
• Alimony
25
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
October 25, 2016

26. 2. Resident 1040 Return
• Summary of Income tax reporting on a 1040 Return – For U.S. citizens and U.S. residents the
1040 imposes income tax on all personal income except that excluded specifically by the
Internal Revenue Code. Income includes: wages, net earnings from self employment, interest,
dividends, rental, business and partnership income, pension distributions and alimony. Tax
rates vary from zero to 39.6% based on a rate schedule on amount of taxable income. Special
reduced tax rates ranging from zero to 20% apply to capital gains for assets held 1 year or more
and to certain types of dividend income. Deductions are allowed to reduce the taxable income.
Deductions can include significant medical expenses, home mortgage interest, investment
interest, real estate tax and state and local taxes, charitable contributions and certain
miscellaneous deductions. Personal exemptions are allowed for the taxpayer and dependents.
Extra tax imposed on self-employment income and net investment income. Foreign income tax
paid on foreign income can provide a credit that reduces your U.S. tax.
Once you become subject to filing a 1040 return – you are subject to tax on worldwide income no
matter where it is earned and where you are located.
26
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
October 25, 2016

27. a. Who files a 1040 return?
1. A U.S. citizen
2. A green card holder – someone with a permanent resident visa
3. A person meeting substantial presence test
• Substantial Presence Test:
Add actual days in U.S. in current year
+
1/3 of days in U.S. in immediately preceding year
+
1/6 days in U.S. in second preceding year
If total > 183 days = you file a 1040 return
- Treaty exceptions can apply
4. A person who has been in the U.S. for more than 183 days in a calendar year.
5. A person who elects to file a 1040 return, even if not otherwise required to do so.
27
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
October 25, 2016

28. b. Dual Status: Immigrant’s first year in the U.S. generally will require him to file a Dual Status
Return – (IRS Publication 519 – useful guide)
1. A Dual Status Return is a 1040 NR (Non Resident) return for the earlier part of the tax
year before coming to the U.S. and a 1040 return for the second part of the year
2. Exemptions on 1040 part allowed for spouses and children dependents – but they must
have Social Security Number or ID Number. To get an Individual Taxpayer ID number
include W-7 with the return filed at the Austin, Texas, Service Center (see Publication
1915)
3. In dual status year, you can’t file a joint return even if married and spouse is with you.
You can file joint return in any year thereafter if spouse elects to file as 1040 tax filer
28
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
October 25, 2016

29. II. Pre- Immigration Income Tax Planning.
A. Consider cashing out appreciated stocks, investments, selling
land before coming to U.S. but only if you can do so without
having a big tax impact in your home country. Consult with a tax
expert in your home country
B. For U.S. capital gains tax the cost basis of a capital asset is what
you paid for it in U.S. currency equivalent. If you inherited
property, the value of the property on the date you inherited it,
determines the acquisition cost. This is true even for property
inherited from a nonresident alien decedent (Rev. Rul. 84-139)
29
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
October 25, 2016

30. III. U.S. Estate and Gift Tax
• When Does an Immigrant become Subject to U.S. Estate & Gift Tax?
U.S. law defines a resident for income tax differently than a resident for federal
estate and gift tax. A resident for income tax purposes is someone who either has a green
card, has spent time in the U.S. under the substantial presence test, or 183 day rule. The
test for estate and gift tax is where you are domiciled.
“A tax is hereby imposed on the transfer of the taxable estate of every decedent who is a
citizen or resident of the United States” IRC § 2001
A. Who is a resident?
Regs: a resident decedent “is a decedent who, at the time of his
death, had his domicile in the United States.” Regs § 20-0-1(b)(1)
B. Who is a nonresident?
“a decedent who, at the time of his death, had his domicile outside
the United States.” Regs § 20-0-1(b)(2) 30
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
October 25, 2016

31. C. Domicile
- Domicile is a question of fact.
- Tax Treaties provide tie breaking provisions for determining domicile. (15
countries mostly European countries along with Japan and Australia have transfer
tax treaties with the U.S.
- It is possible to be a resident for income tax purposes and a nonresident for estate
tax purposes.
D. Consequences of Being A Resident For Estate Tax Purposes:
Residents are taxed on worldwide assets – the same as a U.S. citizen – file a Form 706 return
- Example – You can arrive in the U.S. on a business visa planning to spend only a few years in the
U.S. before returning to your home country. If you maintain a property in the home country and
maintain ties and financial assets there and can show your stay in the U.S. is limited, you may be
able to avoid U.S. estate and gift tax in U.S. as a resident.
- Be careful what you wish for because the U.S. federal estate tax for a resident may result in far less
tax than being treated as a non-resident.
31
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
October 25, 2016

32. IV. Estate Tax Noncitizens/Nonresidents
A. Estate tax exemptions very small and effectively shields
only the first $60,000 of assets from estate tax. Tax
rates can be as high as 40% under the new tax law for
the largest estates. Same rate schedule is used as for
resident estates. Tax return required if gross estate
greater than $60,000. Files 706 NA Return
B. Assets subject to estate tax:
- U.S. situs real property
- Tangible Personal Property:
o Interests in U.S. situs trusts
o Furniture
o Art (except on loan exhibition)
o Cash (but not deposits in U.S. Bank Account)
- Intangible Property:
o Stock in companies incorporated in the U.S.
(possible exception if held by foreign broker in
street name)
o Nonregistered debt instruments not treated as
portfolio investment
32
V. Estate Tax U.S. Resident
• Current exemption from federal estate and gift tax is
$5,450,000 if your spouse is a U.S. citizen or a
qualified domestic trust provision is included in the
Will, an added unlimited marital deduction is available.
The exemption is indexed for inflation so can be
expected to go up
• The death taxes in the U.S. may be for less than in the
immigrant’s country of origin.
• U.S. estate tax imposed on worldwide assets of the
decedent.
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
October 25, 2016

33. 33
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
VI. Pre Immigration Planning for Estate Tax for the Immigrant
• For high net worth immigrant, consider making gifts to family member before
establishing a domicile in U.S. but make sure you are not subject to taxes in your
home country. Check with local advisor.
• If foreign trusts are established and you are a trustee or maintain a beneficial
ownership, you may have a reporting requirement once you file 1040 return in the
U.S.
• Once established in the U.S. consult with an estate planner knowledgeable about
planning for the international client. Consider the need for a Will covering worldwide
assets
VII. Important Points to Remember
• When you file a U.S. 1040 return you must report your worldwide income
• The test for filing a U.S. income tax is based on your physical time in the U.S. The
test for U.S. gift and estate tax filing is where you are domiciled
October 25, 2016

34. VIII. 877A OF THE INTERNAL REVENUE CODE “THE EXIT TAX”
A. WHAT IS IT?
• 877A imposes a forced recognition of income, including gains and losses on all of the person’s
property as of the date of expatriation or loss of a green card.
October 25, 2016
34
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.

35. B. RULE FOR GREEN CARD HOLDERS
• For Green Card Holders: The Exit Tax only becomes applicable to a “long term resident” – an
individual who has held a U.S. permanent residence visa (green card) in at least eight of the prior
15 years. (Any part of a calendar year counts as a year.)
• One obvious way to avoid this Exit Tax is not to obtain a green card or give it up before the 8
year test is met.
October 25, 2016
35
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.

36. C. WAY FOR EXIT TAX TO BE AVOIDED
• For persons who have held a green card in eight years or more, it still may be possible to avoid
877A if three threshold tests are met:
1. Individual’s average net income tax for the 5 years ending before the date of expatriation
is not more than exceeded $160,000 (as of 2015);
2. his net worth is less than $2,000,000; and
3. The individual certifies that he has complied with tax filing requirements for the 5
preceding taxable years.
• A long term resident must complete a Form 8854 in order to certify that they are not subject to
the Exit Tax.
• $10,000 penalty can be imposed for not filing the form.
October 25, 2016
36
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.

37. D. THOSE SUBJECT TO THE EXIT TAX
• “Covered Expatriate” is a person who does not qualify for the exceptions to the statute’s
application.
Result: A taxable event requiring expatriate to determine the value and tax basis of all of his
property, worldwide, as of the day before the expatriation date.
• All the property is treated as being sold on that date.
• Gain is only recognized to the extent that the gain exceeds $690,000 (as of 2015).
October 25, 2016
37
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.

38. D. THOSE SUBJECT TO THE EXIT TAX (CONTINUED)
• Certain special rules for:
1. deferred compensation accounts;
2. specified tax deferred accounts such as IRAs; and
3. any interest in a non-grantor trust.
• Note: A U.S. real estate holding is subject to the Exit Tax even though withholding tax would be
imposed on the eventual sale of the property by a non-resident alien.
October 25, 2016
38
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.

39. Introduction
Eric’s specialist area is the taxation of alternative investments, in particular private equity partnerships with UK and/or US
partners, and offering withholding tax advice in the wake of the US Foreign Account Tax Compliance Act (FATCA). Eric has
also gained extensive knowledge of the US Federal income taxation of international transactions having worked with
individuals and businesses inbound to and outbound from the US.
Eric joined Frank Hirth in 2012, moving to our New York office in 2014 to support our business tax team. He is a member of
the Institute of Chartered Accountants in England and Wales (ACA), is a US Enrolled Agent (EA), and co-authored the
International Investment Funds and Private Equity (IBFD) tax portfolio: Investment Funds and Private Equity in 2012.
On October 1, 2016, Eric was promoted to the Board of Directors and Managing Director of the New York office.
October 25, 2016
39
SEGMENT 4:
Eric Collins
Business Tax Director
Frank Hirth plc

40. Compliance
What legal permanent or simple tax residence means in terms of
income tax and informational return filings.
• Practical implications:
• Filing a tax return 1040 vs 1040NR
• Paying US taxes - Quarterly instalments?
• Common attachments to the return:
• 1116 – Foreign Tax Credits (deductions are claimed as itemized on your return)
• 2555 – Foreign Earned Income Exclusion (credit may be available for excess)
• PFIC – 8621, QEF – purging elections, MTM elections, exit tax?
• CFC – 5471, Subpart F income – Filing on “becoming” a US person
• Form 8938, Statement of Specified Foreign Financial Assets – like FBAR but not…
October 25, 2016
40
SEGMENT 4:
Eric Collins
Business Tax Director
Frank Hirth plc

41. Compliance Continued…
• Stand alone returns:
• 3520/3520A Pensions/Trust reporting
• FinCen Form114, Report of Foreign Bank and Financial Accounts (“FBAR”)
• Penalties:
• Tax return, 1/4rly instalment
• Informational
• Trust
• Financial interest
• Other considerations:
• FATCA reporting and withholding forms
• State tax returns – treaty coverage, real double taxation
October 25, 2016
41
SEGMENT 4:
Eric Collins
Business Tax Director
Frank Hirth plc

42. Worldwide Taxation
The ability to mitigate worldwide taxation and to prevent becoming subject to s877A
by filing appropriately-timed treaty claims (for dual residents tie-breaking back).
• US persons taxed on worldwide income
• Green card holders specifically considered to be US persons?
• Income from former country of residence
• Treaty tie-break
• s877A - so called “Exit Tax”:
• Covered expat – two part test, net worth and tax liability tests
• Non-compliant taxpayer = covered expat
• Green card holders?
October 25, 2016
42
SEGMENT 4:
Eric Collins
Business Tax Director
Frank Hirth plc

43. Temporary Non-residence Rule
The often forgotten rule about temporary non-residence not actually
applying in certain circumstances.
• Temporary non-residence:
• US resident for 3 consecutive calendar years
• Present in the US for at least 183 days in each year
• Cease to be US resident and
• Become US resident before the end of the third calendar year after the end of the preceding 3
year period of residency
• Subject to US tax on US source income and gains on a net basis (as a US person) unless you would
be subject to a higher tax under the flat rate 30% tax applicable to FDAP income
• No Lapse Rule
October 25, 2016
43
SEGMENT 4:
Eric Collins
Business Tax Director
Frank Hirth plc

44. Exit Planning
The importance of completing all necessary steps and filing all
necessary paperwork when relinquishing a green card.
• For “Long-term Green Card holders, expatriation occurs on the earlier of:
• Date Green Card is abandoned (Form I-407)
• Date Green Card holder is subject to final order for removal from US and actually leaves
and
• Date Green Card holder claims treaty non-residence and notifies authorities on Form 8833
October 25, 2016
44
SEGMENT 4:
Eric Collins
Business Tax Director
Frank Hirth plc

45. Introduction
Richard has a practice focusing on cross-border estate, gift and income tax planning for owners of privately held companies
and other high-net-worth U.S. and foreign individuals.
He focuses on pre-immigration and pre-expatriation tax planning, offshore trusts and foundations deferred compensation
planning for fund manager and structures involving life insurance. He has been heavily involved in advising clients on the
IRS Voluntary Disclosure programs.
October 25, 2016
45
SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide

46. Inbound Planning – Use of Life Insurance or Annuities
• Suddenly taxed on worldwide income
• In some cases even if cash not distributed
• Purchase VLI or DVA prior to arrival
• No income on growth inside policy
• LI more appropriate for permanent move to US
• VA less expensive if move to US is temporary
SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide
46
October 25, 2016

47. Inbound Planning – PPLI Structure
SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide
Insurance
Professional
Insurance Dedicated Funds
(IDFs)
-Specific menu to each carrier
-Fund of Hedge Funds
-Traditional Long Only Strategies
Insurance Carriers
(Separate Account)
-Zurich, Lombard
-Offshore carriers
Policy Owner
-Individuals - Corporations
-Family Offices - Trusts
(All US Taxpayers)
Info
Investment
RateofReturn
Financial &
Medical
Underwriting
47
October 25, 2016

48. SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide
Inbound Planning – Types of VLI and DVA
• DVA
– Can pay premiums all at once with no tax penalty
– No income while assets remain inside contract
– Distributions are partially return of capital / basis until entire purchase price returned
– Distributions in excess of basis are ordinary income
• VLI
– Compliance vs non-compliant 7702(g) policy (how much death benefit)
– MEC vs non-MEC (how fast do the premiums go into policy)
– Frozen Cash Value to reduce income triggered by 7702(g) policy
– No income while assets remain inside contract
– Death benefit received tax free under Section 101
48
October 25, 2016

49. SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide
Inbound Planning – Types of VLI and DVA
• 2 key considerations
– Diversification
– Investor Control
• Diversification
– 55, 70, 80, 90
• Investor Control
– Webber Case
49
October 25, 2016

50. Inbound Planning – VLI or DVA in Foreign Trust
• Avoids generating income during accumulation phase
• No DNI means no UNI
• Death benefits received tax-free
• Helps deal with cross-border families where US branch might otherwise seek domestication of
trust
SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide
50
October 25, 2016

51. Inbound Planning – Reporting VLI or DVA
• Reporting?
– No FBAR or FATCA Form 8938 if domestic carrier
– Cash value VLI or DVA is reportable foreign financial asset if foreign carrier
– No income on Form 1040 if compliant policy regardless of issuer
SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide
51
October 25, 2016

52. Inbound Planning – Overcoming Client Resistance to Insurance
• Clients do not need death benefit
• Clients do not want to pay huge commissions to agent
• Clients do not want to pay for excessive cost of insurance
• Clients do not want to have medical exam
• Clients do not want to travel outside the country
SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide
52
October 25, 2016

53. Inbound Planning – Basis Step Up Techniques
• Sell and repurchase securities portfolio
• Sell real estate to related party for note
• Check the box on underlying company
SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide
53
October 25, 2016

54. 54
 Grantor trust blocks U.S.
estate tax if drafted properly
 Foreign holding company
makes check the box election
to step up basis in underlying
assets
 Foreign company may provide
additional estate tax insulation
NRA Grantor
Grantor
Trust
Foreign
Holding
Company
Underlying Assets
(may be U.S.
or foreign situs)
SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide
Inbound Planning – Typical Trust Structure
October 25, 2016

55. Inbound Planning – Earnings Stripping
• Pay interest to unrelated party
• Optimal is to qualify as portfolio interest
– Deduction to US payor and no US tax to recipient
• Next best is loan from treaty country lender
– Deduction to US payor and US tax at treaty rate
• Pay for consulting services performed outside the US
– Deduction to US payor but no US tax on recipient
• Pay royalty for use of intellectual property
– Deduction to US payor but recipient pays US tax so locate IP in treaty country
SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide
55
October 25, 2016

56. October 25, 2016
56
Contact Info:
Margo Chernysheva, Esq.
Founding Partner
MC Law Group
E: mc@giglawyers.com
T: (702) 258-1093
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
E: kahl@archerlaw.com
T: (215) 246-3132
John I. Forry
Of Counsel and Practice Area
Leader for International
Finance, Investment & Tax
Seltzer | Caplan |
McMahon | Vitek
E: forry@scmv.com
T: (619) 685-3179
Eric Collins
Business Tax Director
Frank Hirth plc
E: Eric.Collins@frankhirth.com
T: (212) 465-7800
Richard S. LeVine
Of Counsel
Withers Worldwide
E: richard.levine@withersworldwide.com
T: (203) 974-0317

57. ► You may ask a question at anytime throughout the presentation today. Simply click on the question mark icon located on the floating tool bar on the bottom right side of your screen. Type
your question in the box that appears and click send.
► Questions will be answered in the order they are received.
Q&A:
October 25, 2016
57
SEGMENT 1:
Margo Chernysheva, Esq.
Founding Partner
MC Law Group
SEGMENT 2:
John I. Forry
Of Counsel and Practice Area Leader for
International Finance, Investment & Tax
Seltzer | Caplan | McMahon | Vitek
SEGMENT 3:
Kenneth E. Ahl
Partner
Archer & Greiner, P.C.
SEGMENT 4:
Eric Collins
Business Tax Director
Frank Hirth plc
SEGMENT 5:
Richard S. LeVine
Of Counsel
Withers Worldwide

58. October 25, 2016
58
ABOUT THE KNOWLEDGE GROUP
The Knowledge Group is an organization that produces live webcasts which examine regulatory
changes and their impacts across a variety of industries. “We bring together the world's leading
authorities and industry participants through informative two-hour webcasts to study the impact of
changing regulations.”
If you would like to be informed of other upcoming events, please click here.
Disclaimer:
The Knowledge Group is producing this event for information purposes only. We do not intend to
provide or offer business advice.
The contents of this event are based upon the opinions of our speakers. The Knowledge Group does
not warrant their accuracy and completeness. The statements made by them are based on their
independent opinions and does not necessarily reflect that of The Knowledge Group‘s views.
In no event shall The Knowledge Group be liable to any person or business entity for any special,
direct, indirect, punitive, incidental or consequential damages as a result of any information gathered
from this webcast.
Certain images and/or photos on this page are the copyrighted property of 123RF Limited, their
Contributors or Licensed Partners and are being used with permission under license. These images
and/or photos may not be copied or downloaded without permission from 123RF Limited