Watson, CPA | International / Real Estate Tax

CPA specializing in international and real estate tax. Educational only — not tax advice.

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

I prepare US tax returns for people with money outside the US. Japan, mostly.
Foreign accounts, PFICs, the treaty, and the forms nobody warned you about.
If you're a US filer investing abroad, this account is for you.
Japanese side: @watsonuscpa

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

This is partially right. You can file by yourself. But keeping up with annual filings such qs statements of information, business licenses, property taxes, etc. is really, really hard. Even CPAs can't remember every state's requirements. Outsourcing is a good way to avoid penalties.

[Jason Chaliff @jchal]

If you need a lawyer to file your first LLC, you should reconsider becoming an entrepreneur.

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

Trading forex (foreign currency)? Gains and losses are usually "ordinary," not capital.

Downside: no lower long-term rate, even after a year.

Upside: losses offset your salary, with no $3,000 yearly cap like stock losses.

Most FX trades are short-term anyway. A good deal.

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

Told your parents shouldn't sell you their house, or you'd lose the step-up in basis at death?

Check their gain first.

Lived there 2 of the last 5 years? Up to $500K of gain is tax-free for a married couple, $250K if single.

Rules of thumb aren't your case. Ask a CPA.

[Matt Smith @SmithMatthewC]

Am I understanding correctly that you can't use non-tax specific AI platforms* (Chat, Claude, etc) without a 7216 consent AND you can't deny service based on failure to consent or every consent you have is no longer valid? Am I losing my mind?

*No model training versions assumed

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

If your employer doesn't have a contract with Claude for business, you might be better off leaving.

[Roger Ledbetter @rledbetterCPA]

Okay, I'll say it. The AICPA and IRS are doing serious damage to tax pros as it relates to AI.

Every day there is another "I'm firing my idiot CPA because my frontier model found an error" post.

There is a lot of good, but dated, legislation governing what your tax pro can send to a model.

You, as the taxpayer, do not have that same restriction.

Yes we have client consent processes that can help, but tax pros still need to be using the right tier to protect that data and remain compliant.

The tax code keeps growing, context windows for frontier models keep expanding, and the bar for being a tax pro keeps getting raised.

We're in this weird spot in the profession where our clients have more technology leverage than we do because of bureaucracy.

It's a terrible position to be in and the longer out of touch generations are in charge of making the rules the worse it will get.

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

Hit by Hurricane Isaias? The IRS gave you more time.

Filing and payment deadlines move to Feb. 4, 2027 (Alabama) and Feb. 8, 2027 (Florida) in the declared areas.

You can also claim the loss on last year's return for a faster refund.

Check if your county qualifies.

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

Does your CPA firm work with RIAs?

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

Got help paying for Marketplace health insurance? The safety net is gone.

Starting with 2026 returns, if you earn more than you estimated, you pay back ALL the extra help. No cap anymore.

Got a raise, bonus, or side income? Update your Marketplace income now, not in April.

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

https://t.co/b5vcGAecoe

https://t.co/mfHH7WMnKY

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

Good news: two 2026 IRS PLRs let heirs move an IRA tax-free even with no beneficiary named.

Bad news: it costs a full PLR request and months of waiting.

Naming a beneficiary costs $0 and 5 minutes. Your call lol

[Thomas Kopelman 💵 @TKopelman]

Do not forget to add beneficiaries to your retirement accounts and life insurance

These directly dictate where the proceeds go to

In almost all cases, beneficiary designation overrides a will

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

@timthecpa Haha, I've seen some crazy ones too — including the ones who spat "you don't understand pass-through" at me on their way out.

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

Taking cash out of your S corp? Check your basis first.

Basis = what you put in, plus profits, minus losses and past payouts.

Payouts up to basis come out tax-free. Once basis hits zero, every extra dollar is taxed as a capital gain.

Know your basis before you pay yourself.

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

True🤣

[A.J. Spring @ArthurJSpring]

It's wild to me that 2848, a form that gives someone full access to a taxpayer's info and allows them to act on their behalf, has no way to make sure that the acts authorized on page 1 were actually signed off on by the taxpayer, whose signature goes on page 2

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

@JakeLatimer26 Basis calculation including loan is so difficult🤯

[Daily Tax Memes @DailyTaxMemes]

Trying to decipher the Schedule K-3 on October 15

[Daily Tax Memes @DailyTaxMemes]

October 14 review procedures

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

https://t.co/9Nos9p3DyJ

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

On a work visa and buying Affordable Care Act (ACA) health insurance? 2027 changes your bill.

Proposed IRS rules: the premium tax credit only goes to US citizens, green card holders, and a few other groups.

Most visa holders can still buy a plan, at full price.

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

Tax-free abroad doesn't mean tax-free in the US.

Got unemployment benefits from another country? The US can still tax them.

The US taxes your worldwide income using its own rules. What the other country calls it doesn't decide it.

Not sure? Ask before you leave it off your return.

[Watson, CPA | International / Real Estate Tax @Watsonuscpajp]

Selling online into other states? Check your sales tax.

Cross a state's sales threshold (often $100K a year) and you may have to register, collect its sales tax, and file there, even with no office in that state.

Miss it and the back taxes plus penalties add up fast.