Thanks for bringing this up! Do you have any recommendations for figuring out the specific tax rules for different countries? I'm considering properties in either Portugal or Greece.

For Portugal and Greece specifically, you'll want to look into their "Golden Visa" programs if you're investing enough, as these can offer some tax advantages for foreign investors. Portugal has a decent tax treaty with the US, and they offer a Non-Habitual Resident tax regime that might benefit you. For accurate country-specific advice, I strongly recommend consulting with a tax professional who specializes in expat taxes and has specific experience with those countries. Local property taxes, transfer taxes, and income tax rules vary significantly by country and sometimes even by region within countries. In my experience, spending money on good tax advice before making an international property purchase saved me from some expensive surprises later.

I did one in 2023 and it was definitely complicated but doable. The key was using a qualified intermediary who handled all the details. The hardest part was finding suitable replacement properties within the 45-day identification period in the crazy market. You absolutely need to follow the timelines exactly - no extensions. I almost lost my tax deferral because my closing got delayed, but we pushed hard to get it done just under the wire. But remember, as others mentioned, this won't work for foreign property - has to be US to US.

That's a great suggestion about the state nonprofit association - I hadn't considered that angle. Do you know if the extension request needs to be submitted in a specific format or to a particular office at the SBA?

The extension request should be submitted through your SVOG portal account under "Correspondence." Include a detailed explanation of your efforts to secure an auditor (with dates and names of firms contacted) and specify how much additional time you need. Be sure to mention that you're specifically struggling to find auditors familiar with Title 2, Subtitle A, Chapter II, Part 200, Subpart F requirements for SVOG grants. Don't wait until the last minute to request this - submit at least 30 days before your deadline if possible. In my experience, the SBA has been reasonable about extensions when you show you're actively trying to comply.

Is that threshold based on the actual awarded amount or the amount spent? My SVOG was for $265k but I only ended up using $248k of it and returned the rest. Not sure if that changes anything regarding the Single Audit requirement.

The threshold is based on the amount expended during your fiscal year, not the amount awarded. So if you only spent $248k of your SVOG funds, you would fall under the $250k threshold and could opt for the simplified compliance audit instead of the full Single Audit requirements outlined in Title 2, Subtitle A, Chapter II, Part 200, Subpart F. Make sure you have proper documentation showing exactly how much was spent and when. This distinction has saved several venue operators a lot of time and money, so it's definitely worth confirming your exact expenditure amount!

Wait, really? My daughter also has a savings account that my parents set up that earned like $320 in interest last year. Does that complicate things even though it's a pretty small amount?

Since your daughter's interest income is only $320, you don't need to worry about the kiddie tax complications. The rules only kick in when unearned income (like interest) exceeds $2,300 for 2024. Since she's under that threshold, she can just report both the W2 income and the interest income on her own simple return. Just make sure she receives the 1099-INT from the bank for that interest income and includes it on her return along with her W2. And remember, you can still claim her as your dependent if she meets the other qualifying requirements.

This is so confusing to me. So the kid files their own W2 income, but the parent claims the education stuff? How does TaxSlayer handle this split situation?

How detailed did you get in your non-willful statement? I'm worried about saying too much vs too little. Did you mention specific years or accounts, or keep it more general?

I was pretty specific but concise - about one page single-spaced. I mentioned when I opened each account, why I opened it (moved abroad for work in 2018, needed local banking), and why I didn't know about the reporting requirements (no international tax experience, used regular tax software that never prompted me about foreign accounts). I avoided making excuses but clearly explained my background and why the oversight was genuine. I included specific moments like when I first learned about FBARs and my immediate actions afterward. The IRS seems to appreciate this level of detail as it supports your case for non-willful conduct.

I used TaxAct for my amended returns and then the FinCEN online system for the FBARs. It was doable but required a lot of research. The regular tax software doesn't have great guidance for the Streamlined procedures specifically. If your situation is complex (multiple accounts, business interests, investments), I'd probably get professional help. For basic bank accounts, you might be able to DIY.

Are there any special considerations for the 5472 when all the company's income is from digital products? My Delaware corp sells software but I'm the only employee and I live in Germany.

For digital products, the 5472 requirements still apply, but you need to be especially careful about documenting any IP rights or licensing between you and the corporation. Since you're in Germany and the only employee, all transactions between you and the company need proper documentation and arm's length pricing. Make sure you're tracking any payments for services you provide to the corporation, any IP you're licensing to it, and any other transactions that cross borders. Digital businesses have a tendency to blur these lines, which can create issues with the 5472. Consider having transfer pricing documentation prepared, even for a small operation.

I tried using TurboTax Business for my foreign-owned corp last year and it was a disaster. It didn't handle the 5472 properly and didn't clearly indicate which mailing address to use. Ended up having to redo everything with a CPA who specializes in international taxation.

Thanks for sharing your experience. That's really disappointing to hear about TurboTax Business. I was hoping to save some money by doing it myself, but sounds like I might need to look for a specialist CPA after all. Did you find someone reasonable who understands these foreign-ownership situations?