Can someone clear this for me?

I am retired, live in South Africa, and plan to spend between four and
six months of every year in Florida but do not wish to take up residence
there and will return home to South Africa after each visit where I am a
taxpayer.

I could exceed the 183 day over three year test but could then avail
myself of the Closer Connection Exception Statement (Form 8840).

The question is the following. Can I make use of this Exception
Statement year after year ongoing or can I only utilise it once?

Advice will be much appreciated.

F Ferucci
Cape Town
South Africa

What sort of visa do you intend coming over on..??


--
Posted via http://britishexpats.com

I hold an Italian passport and enter under the visa waiver option twice
per year for two to two and a half months each time.

ray6 wrote: What sort of visa do you intend coming over on..??

Originally posted by Feruccio I hold an Italian
passport and enter under the visa waiver option twice per year for
two to two and a half months each time. ray6 wrote: What
sort of visa do you intend coming over on..??

I cannot understand why you would need to use an IRS
form on a visa waiver...your not working here!


--
Posted via http://britishexpats.com

ray6 wrote: Originally posted by FeruccioI hold an Italian passport and enter under the visa waiver option twiceper year for two to two and a half months each time.ray6 wrote:What sort of visa do you intend coming over on..?? I cannot understand why you would need to use an IRS form on a visa waiver...your not working here!

Apparently if you are in the US for more that 183 days over a period of
three years (calculated actual days current year + third of days last
year + sixth of days previous year) then you are deemed a resident by
the IRS and have to declare your income on a world basis. This boils
down to a maximum stay of 4 months per year.

However if you fail the above test (exceed the 183 days over the period)
but are still under the 183 for the current year you can still avail
yourself of the 'Closer Connection Exception Statement) (form 8840)
which basically shows that you are a resident in another country where
you return to and pay taxes. You have to furnish proof such as driver's
licence, address, names of organisations etc.

Now my question is this. Can this 8840 Statement be submitted each year
or is it only for a once off situation. In practice can I then spend
between 4 and 6 months each year in the US as a visitor and then just
submit the 8840 so as not to fall foul of the IRS?

Advice much appreciated.

F Ferucci (South Africa)

Originally posted by Bolander ray6 wrote:
Originally posted by FeruccioI hold an
Italian passport and enter under the visa
waiver option twiceper year for two to two and a half months each time.ray6 wrote:>What sort of
visa do you intend coming over on..??
I cannot understand why you would need to use an IRS
form on a visa waiver...your not working here!
Apparently if you are in the US for more that
183 days over a period of three years (calculated actual days
current year + third of days last year + sixth of days previous
year) then you are deemed a resident by the IRS and have to declare
your income on a world basis. This boils down to a maximum stay of 4
months per year. However if you fail the above test (exceed the
183 days over the period) but are still under the 183 for the
current year you can still avail yourself of the 'Closer Connection
Exception Statement) (form 8840) which basically shows that you are
a resident in another country where you return to and pay taxes. You
have to furnish proof such as driver's licence, address, names of
organisations etc. Now my question is this. Can this 8840
Statement be submitted each year or is it only for a once off
situation. In practice can I then spend between 4 and 6 months each
year in the US as a visitor and then just submit the 8840 so as not
to fall foul of the IRS? Advice much appreciated. F Ferucci
(South Africa)



8840 can be submitted year after year if
circumstances warrant. This can be done, for example, with the purpose
oftaking advantage of some provisions of tax treaties.

Example:
according to such treaties with some countries, foreign students in the
US, residents of those countries, are excempt from US tax for the
income from certain sources for the period of up to several years.
These students submit a 1040NR (non-resident) tax return form instead
of a common 1040. 1040NR has a line for a treaty tax excempt income. In
such case some additional forms have to be attached. One of them is
8840 where one justifies why s/he considers oneself a non-resident
despite failing a presense test. Because the sole reason of being in
the US for these people is studying, this is considered temporary
presense because it is over upon the eventual graduation. However, this
cannot be used over 5 years, I believe. If you have physically been
present in the US for at least a day in five years in a row AND you
fail a 183 day test, you are a resident for the IRS purpose


--
Posted via http://britishexpats.com

pl7 wrote: Originally posted by Bolanderray6 wrote: Originally posted by Feruccio>I hold an Italianpassport and enter under the visa waiver option twice>per year fortwo to two and a half months each time.>ray6 wrote:>>>What>sort of visa do you intend coming over on..??I cannot understand why you would need to use an IRSform on a visa waiver...your not working here!Apparently if you are in the US for more that 183 days over a period ofthree years (calculated actual days current year + third of days lastyear + sixth of days previous year) then you are deemed a resident bythe IRS and have to declare your income on a world basis. This boilsdown to a maximum stay of 4 months per year.However if you fail the above test (exceed the 183 days over the period)but are still under the 183 for the current year you can still availyourself of the 'Closer Connection Exception Statement) (form 8840)which basically shows that you are a resident in another country whereyou return to and pay taxes. You have to furnish proof such as driver'slicence, address, names of organisations etc.Now my question is this. Can this 8840 Statement be submitted each yearor is it only for a once off situation. In practice can I then spendbetween 4 and 6 months each year in the US as a visitor and then justsubmit the 8840 so as not to fall foul of the IRS?Advice much appreciated.F Ferucci (South Africa) 8840 can be submitted year after year if circumstances warrant. This can be done, for example, with the purpose oftaking advantage of some provisions of tax treaties. Example: according to such treaties with some countries, foreign students in the US, residents of those countries, are excempt from US tax for the income from certain sources for the period of up to several years. These students submit a 1040NR (non-resident) tax return form instead of a common 1040. 1040NR has a line for a treaty tax excempt income. In such case some additional forms have to be attached. One of them is 8840 where one justifies why s/he considers oneself a non-resident despite failing a presense test. Because the sole reason of being in the US for these people is studying, this is considered temporary presense because it is over upon the eventual graduation. However, this cannot be used over 5 years, I believe. If you have physically been present in the US for at least a day in five years in a row AND you fail a 183 day test, you are a resident for the IRS purpose Thanks. But the 183 day test only takes into account three consecutive years.
I do not see anywhere about 5 consecutive years. Perhaps it is
. specifically intended for students (?). You usually take
advantage of . tax treaties if you are in the position of paying taxes
in two . . countries. That is in any event the whole point of form
8840. It shows . that you are a resident and taxpayer in another country.

I intend merely to visit the US as a retired person without the need
to work or earn
as I am of self supporting financial means.