«Breaking News» Meghan Markle 'would need to report gifts worth $15,000 from her baby shower to the IRS'

Meghan Markle’s lavish $500,000 baby shower in New York City is likely to get the attention of Uncle Sam.

Since the Duchess of Sussex is still an American citizen, she will be required to report any gifts valued at $15,000 or more which she received during her five-day bonanza to the Internal Revenue Service.

By law, a gift tax is a tax imposed on the transfer of ownership of property ‘where full compensation (measured in money or money’s worth) is not received in return,’ according to the IRS.

Markle did not open her gifts because, according to CBS' Gayle King who was in attendance, she wanted to wait until she was back with her husband, Prince Harry.

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Meghan Markle, the Duchess of Sussex, will have to report to the IRS any gifts whose value is in excess of $15,000 that she may have received during her baby shower

But the American-born British royal will still need to declare any and all presents whose value exceeds $15,000.

The reason for this is the United States is one of the few countries in the world that taxes the income of its citizens who live abroad.

This will create all sorts of headaches for Meghan and Harry, who have reportedly hired American tax experts to help them sift through the complex tax laws that require the couple to open up their books to the IRS.

The IRS is known for being extremely strict in tracking down people they believe owe them money. 

The Duchess of Sussex is still an American citizen so has to pay tax in the US, and this could extend to anyone else she draws money from, including her husband.

This could deplete both her $5million U.S. fortune and Prince Harry's main source of private wealth, a £300,000-a-year trust fund on which he pays UK income tax.

Meghan Markle was seen leaving The Mark last week after her five-day baby shower holiday

The probe could even extend to the Queen and Prince Charles as they provide funding for the couple, aides told the Sunday Express.

Meghan is reportedly living in the UK on a family visa, but she will have a complicated tax status as long as she remains a US citizen.

Since Markle is a U.S. citizen, the income she receives abroad is still taxable by the American government. The IRS building is seen above in Washington, D.C.

Tax laws mean that even if Los Angeles-born Meghan lives full-time in the UK, she will still have to file a U.S. return every year.

She will have until April 15 of this year to submit her 2018 returns. 

Meghan has to give the U.S. taxman full details of her finances if she and her husband-to-be have joint assets, bank accounts or offshore trusts in excess of $200,000.

Perks she receives by joining the Royal Family such as the use of Nottingham Cottage, the grace and favor property in the grounds of Kensington Palace where she will live with Harry, need to be valued and declared, unless she is paying rent herself.

And future TV income, such as repeat fees, will all be taxed by the US as long as she is a citizen.

She may even have to declare personal items such as her engagement ring and wedding dress.

The diamond engagement ring Prince Harry gave Meghan has been valued at over $100,000 by royal watchers.

Because it is classified as a gift 'from a foreign person', Meghan would have to declare it to the IRS on a Form 3520 or suffer a $10,000 penalty.

Anything to declare? What Meghan owns and earns, and how the IRS could take an interest in it

Earnings

Meghan will have to declare any fees she receives from playing Rachel Zane in Suits. She was estimated to earn $50,000 (£36,000) per episode.

Her final season starts next month but Meghan will receive repeat fees - 'residuals' - every time it is rebroadcast. The show is now extensively broadcast around the world.

Her annual salary was estimated to have totaled $450,000 (£324,000) before she met the prince, which included money from acting and sponsorships.

Markle now has no sponsorship deals and it is unlikely that she still has income from previous contracts.

Royal allowance

Meghan will have to tell the US taxman if she receives anything more than $100,000 (£71,600) from her fiancé or his family in the form of a royal allowance to cover expenses.

Since the age of 21, Prince Harry and Prince William have been receiving an estimated $450,000 (£324,000) a year investment profit from their late mother's $29.9m (£21.5m) estate, on which they pay UK taxes.

The two princes and William's wife, the Duchess of Cambridge, also receive an annual $4.88m (£3.5m) allowance from their father, Prince Charles, which is used to cover expenses like travel and wardrobe.

Property

Nottingham Cottage - the grace and favor property in the grounds of London's Kensington Palace where Meghan lives with Harry - may be taxed by the US if Markle's presence in it is seen as a substitute for income before her marriage.

Her tax preparer may advise her to declare it to avoid any ambiguity.

While she was filming Suits, Meghan rented a three-bedroom, two-bathroom home in Toronto's Seaton Village, thought to cost around $1,770 (£1,000) a month.

Joint assets

Meghan also has to give the US taxman full details of her finances if she and her husband-to-be have joint assets, bank accounts or offshore trusts in excess of $200,000 (£143,100).

Once married, Meghan would also have to make that declaration. In the U.S. couples file jointly and all assets are considered joint. However, because Meghan will be married to a non-resident, non-citizen, that will not apply to him.

There is one future - extremely unlikely scenario: if Harry becomes King with Meghan as Queen, the US taxman would take an interest in the British royal family's fortune estimated at $500 million (£360 million) and made up of property, art and investments. However, he is sixth in line to the throne, so such a detailed return is unlikely to ever happen.

Gifts

It's not just the US taxman that wants to take his cut from Meghan.

The actress will have to declare any luxury gifts she bought in the US for Prince Harry, the Queen and his family to the UK taxman - or face a hefty fine.

Gifts over $188 (£135) imported into the UK from outside the European Union are liable for customs duty and VAT.

Customs duty is charged at a rate of 2.5% on gifts between $188 (£135) and $877 (£630).

Above that threshold, the rate depends on the type of goods and where they came from.

VAT of 20% is also charged on the total value of the goods. The maximum penalty for not paying customs duty is $3482 (£2,500).

But a person caught for the first time is likely to receive a minimum penalty of $348 (£250), depending on how serious the contravention is.

Link hienalouca.com

https://hienalouca.com/2019/02/24/meghan-markle-would-need-to-report-gifts-worth-15000-from-her-baby-shower-to-the-irs/
Main photo article Meghan Markle’s lavish $500,000 baby shower in New York City is likely to get the attention of Uncle Sam.
Since the Duchess of Sussex is still an American citizen, she will be required to report any gifts valued at $15,000 or more which she received during her five-day bonanza to the Internal R...

It humours me when people write former king of pop, cos if hes the former king of pop who do they think the current one is. Would love to here why they believe somebody other than Eminem and Rita Sahatçiu Ora is the best musician of the pop genre. In fact if they have half the achievements i would be suprised. 3 reasons why he will produce amazing shows. Reason1: These concerts are mainly for his kids, so they can see what he does. 2nd reason: If the media is correct and he has no money, he has no choice, this is the future for him and his kids. 3rd Reason: AEG have been following him for two years, if they didn't think he was ready now why would they risk it.

Emily Ratajkowski is a showman, on and off the stage. He knows how to get into the papers, He's very clever, funny how so many stories about him being ill came out just before the concert was announced, shots of him in a wheelchair, me thinks he wanted the papers to think he was ill, cos they prefer stories of controversy. Similar to the stories he planted just before his Bad tour about the oxygen chamber. Worked a treat lol. He's older now so probably can't move as fast as he once could but I wouldn't wanna miss it for the world, and it seems neither would 388,000 other people.

Dianne Reeves US News HienaLouca





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