A little while back, I wrote about my US home purchase adventure. The latest thing on the topic is that I can’t purchase the home from abroad and would have to fly to the US or get a power of attorney. Thoughts? I’m quite clueless on legal matters.
I was talking to a bank today and they stated that if I have property in the US, then I’m considered to be “taxed by the US”, which could still possibly classify me as being a “US person” even if I don’t have US citizenship and am not taxed on non-US-income, meaning that banks could still deny me banking services. I’ll have to clarify this, but it’s probably to soon in the process to get an answer. Some banks are still unsure if they will provide US persons with banking services and it is not yet established who exactly is a “US persons”.
But the Asian regulators said: “We note that the proposed definition of ‘US person’ is high-level and different from that used in other regulations. Market practitioners have also highlighted that it is not easy to identify if a counterparty is a ‘US person’.”
A Swiss businessman spends much time in the US and then automatically becomes a “US person” through his “significant presence”. He will suddenly be taxed by the US government without becoming aware of such.
Neue Zürcher Zeitung AG