Saturday, April 14, 2018
Following up on my previous post: Wall Street Journal, Look Out, Meghan Markle! The IRS Is Watching:
Congratulations on finding your Prince Charming! I don’t want to be the bad fairy at the festivities, but we need to have a serious talk about taxes.
Meghan, I know you lived as a U.S. citizen in Canada and may be aware of tax issues faced by the seven million or so Americans living abroad. And I know you’re committed to Harry, because you’ve given up a lot since you two became serious, including your lucrative acting career and your lifestyle website.
But I don’t think you know the tax torment many American expats face when they marry non-U.S. citizens—as you’re about to do. Nearly every financial move they make, and other moves they don’t think of as financial, raises a U.S. tax issue.
In your case, this means that if Queen Elizabeth II gives—or merely lends—you a tiara or a diamond bracelet, you may need to tell the Internal Revenue Service about it. Your share of the free rent for that cute cottage at Kensington Palace where you and Harry will live? Its value could be reportable to the IRS as well. If you have a credit or debit card tied to Harry’s bank account and it has more than $10,000, his account has to be reported to U.S. authorities.