[tayla13]

I have taken on a new job as independent contractor and will move to Brazil at the end of 2010 or beginning of 2011 to focus on this market as I advise a US company. This company is owned by the Japanese which has an office in Brazil actually (dedicated to different markets).
I need advice on how I should prepare for this move. I have a few questions which I greatly appreciate any comments on.

I can continue to be paid into my US bank account from this US company or possibly elect to have the Brazilian company pay me to a Brazilian bank account. Which is better? Should I split my pay - some to US account and some to Brazil account?

Should I keep my house in the USA and try to rent it out (for tax deduction purposes) or try to sell it off and move to Brazil with no assets in the USA.

I heard that I will not be taxed on the first $80,000 of my income while living abroad (staying 330 days outside the US per year). Also can I deduct the apartment rent that I will have while in Brazil?

As I am not a full-time employee for this company, I won't be under the same rules as indep. Contractor.

How much does an international tax adviser cost?

Any ideas, comments or suggestions would be greatly appreciated.

Thanks,
Thad

[MukatA]

If you complete 330 days in a row, then you are eligible for foreign income exclusion if the income is taxed in Brazil. These 330 days can also begin in 2010 and end in 2011 or begin in 2011 and end in 2012.

If you also maintain in home in the U.S. then you can get foreign housing credit.
If you do not qualify for foreign income exclusion or claim foreign tax credit, you can claim moving expenses to move to Brazil. And then when you return to the U.S. you can claim it again. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

[Five Rings]

The above advice is incorrect in several ways.

First, and most importantly, download and carefully read Publication 54:
http://www.irs.gov/pub/irs-pdf/p54.pdf
That will acquaint you with the rules dealing with the Foreign Earned Income Exclusion and the Housing Exclusion. You will be "Physically Present" rather than a "bona Fide resident."
See:Foreign Earned Income Exclusion - Physical Presence Test

It is irrelevant where your salary is paid but I assume you will need some money to live on while you are in Brazil so you had best open a bank acccount there to get some of your money.

If you can rent your house by all means do. You will need to report that income on your US tax of course.

Keep careful track of your moving expenses as they are deductible if your company is not paying them.

For 2009 you may exclude $91,400 + the housing exclusion.
See: Figuring the Foreign Earned Income Exclusion

Be aware that Brazil has a very high social security tax and no tax or Social Security treaty with the US. For a little glimpse of their tax system read:
Brazil Taxes

[tayla13]

Thanks Five Rings for your comments.
There is a lot to consider here and I am under the assumption after reading the Brazil tax information that I will be hit with 25% taxes down in Brazil.
Also there is no tax treaty (as of yet) with Brazil and the US. :(
I have some time still ahead to prepare for this and negotiate with my company for different terms if needed.
Other information on the deal is that the company will give me a car while there and pay (reimburse) for moving expenses. I will take care of housing myself.
I am self-employed and hope to find someone to help me out with all this... From keeping up on estimated taxes and optimizing any tax breaks, its tough trying to figure this out alone.

Anyone know of someone well versed in US/Brazil expat tax advice?

Thanks!

[
QUOTE=Five Rings;2054714]The above advice is incorrect in several ways.

First, and most importantly, download and carefully read Publication 54:
http://www.irs.gov/pub/irs-pdf/p54.pdf
That will acquaint you with the rules dealing with the Foreign Earned Income Exclusion and the Housing Exclusion. You will be "Physically Present" rather than a "bona Fide resident."
See:Foreign Earned Income Exclusion - Physical Presence Test

It is irrelevant where your salary is paid but I assume you will need some money to live on while you are in Brazil so you had best open a bank acccount there to get some of your money.

If you can rent your house by all means do. You will need to report that income on your US tax of course.

Keep careful track of your moving expenses as they are deductible if your company is not paying them.

For 2009 you may exclude $91,400 + the housing exclusion.
See: Figuring the Foreign Earned Income Exclusion

Be aware that Brazil has a very high social security tax and no tax or Social Security treaty with the US. For a little glimpse of their tax system read:
Brazil Taxes[/QUOTE]

[AtlantaTaxExpert]

Tayla13:

I can help you with the filing of the U.S. tax return and the quarterly estimated taxes (Form 1040-ES). If interested, contact me at [email protected].

I cannot help you with the Brazilian taxes, however.