Quick Takes: News You Can Use

Here's just a few short clips from recent news.  I think you might make good use of them.

Chile appears set to join those countries on the US Visa Waiver Program effective in 2014.  This allows visa-free entry to US for up to 90 days - just register online through ESTA.  This could be helpful to those considering Chilean citizenship, now that Chile has streamlined some new routes to immigration and possible citizenship.  For American citizens looking to Chilean citizenship with an eye to possible renunciation of their US citizenship, it means visa-free entry for those quick visits back to the US to visit friends and family, or wrap up business interests.  Chile seems more and more appealing as a place to live, work, launch a business, explore as a PT through South America, even immigrate.  Land of 21st Century opportunities.

Complaints about TSA employees' unethical conduct and worse are up 26%.  More and more travelers are seeking routings which avoid the US.  For example, one American man with lots of international business interests hops from Mexico City to Vancouver when heading from Latin America to Asia.  He heads from Latin America to Europe through Brazil to Portugal and onward.  He claims it's worth a bit of extra expense to avoid transiting any US airport - even though he's a US citizen.  Consider planning your travels to avoid transiting the US, too.  What woman wants to be groped in public?

Still need help securing your personal info against PRISM and other malfeasance, invasions of privacy, risks to your safety and security?  Check out this "Black Paper" on digital privacy by Simon Black, privacy maven, inveterate PT, international business expert.  Loaded with excellent tips to protect yourself, your identity, your communications, especially while traveling. 

May your road rise to meet you, fellow Road Warrioress!
Ann

Told You the Best, and Now the WORST!

When I lived in Singapore, I promptly patronized the very first US pizza chain to open its doors.  Every expat and PT needs a taste of home from time to time.  It bore little relation to products of the parent.  So I had a little chat with the manager.  “But we put cheese on it,” he protested.  “We know you westerners like cheese.”

“But there’s no sauce!”  Minor cultural glitch there.  You find out one thing about a country and culture, and miss something equally important (or more!).

They were literally using a paintbrush to stain the crust pink.  I explained.  The manager insisted I return for a freebie in a few days, while they mastered pizza-making.  It turned out quite acceptable - good-not-great category.

Already covered the fabulous pizza I experienced at Mike’s Stone-Baked Pizza in Tallahassee.  Alas, I have just learned he has sold the pizzeria, although he continues working there at present.  One can only hope the new owners continue Mike’s extraordinary quality.  Let me know when you stop by!

In fairness, I now announce the absolute worst pizza I’ve ever had in any country in my entire life.  Fat Cat Pie Company – in NYC and the Metro area, including Norwalk, CT.  I’m not the biggest fan of an ultra-thin crust pizza – prefer a little substance, a little chew, to a thin crust.  But a crust as crisp as a bland unsalted cracker – and thinner! – and so tough in the center you cannot chew it but must rip it is simply totally unacceptable.  So is a cheese pizza with nearly invisible, definitely untastable, cheese.  Where’s the sauce?  Their paintbrush must be missing half its bristles.  Singapore’s first pink-pizza had more sauce and more flavor.

You’d better believe I Yelped this one.  Yelp forces you to click on stars when you write a review, but this pizza did not even deserve the one star I had to click.  Even if you are a fan of cracker-crust pizza I would avoid this one – no substance, no flavor, no merit whatsoever.

May your road rise to meet you!

Ann

US Expats & PTs May Benefit from Foreign Earned Income Exclusion

If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income from all sources.  However, you may qualify to exclude from income up to an amount of your foreign earnings that is now adjusted for inflation ($91,400 for 2009, $91,500 for 2010, $92,900 for 2011, $95,100 for 2012). I n addition, you can exclude or deduct certain foreign housing amounts.

You may also be entitled to exclude from income the value of meals and lodging provided to you by your employer. Refer to Exclusion of Meals and Lodging in Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, and Publication 15-B, Employer's Tax Guide to Fringe Benefits for more information.

To meet the bona fide residence test or the physical presence test, you must live in or be present in a foreign country. A foreign country usually is any territory under the sovereignty of a government other than that of the United States.  The term "foreign country" does not include U.S. possessions such as Puerto Rico, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands, or American Samoa.  This applies to the typical expat, living and working abroad for an extended period, with an employment visa or legal residency.

For PTs, you want to fulfill the physical presence test.  You meet the physical presence test if you are physically present in a foreign country or countries for at least 330 full days during a period of 12 consecutive months. The 330 qualifying days do not have to be consecutive. The physical presence test applies to both U.S. citizens and resident aliens.

The physical presence test is based only on how long you stay in a foreign country or countries. This test does not depend on the kind of residence you establish, your intentions about returning, or the nature and purpose of your stay abroad.

Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. Your tax home is the place where you are permanently or indefinitely engaged to work as an employee or self-employed individual. Having a "tax home" in a given location does not necessarily mean that the given location is your residence or domicile for tax purposes.

If you do not have a regular or main place of business because of the nature of your work, your tax home may be the place where you regularly live.  If you have neither a regular or main place of business nor a place where you regularly live, you are considered an itinerant and your tax home is wherever you work.

As usual, IRS regulations are byzantine.  For more info on the Foreign Earned Income Exclusion and housing exclusion from IRS, see:

http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html.