L1B holder with tax payed in Home country

[arag76]

Hi,
I am a L1B holder and have a the visa valid for 1 year.

1. My company in host country, to avoid the tax problems (i.e to avoid paying dual taxes, in US), have told us that we can not stay for more than 6 months in US. Is it valid?

2. If yes, does that mean that we can not stay for more than 6 months in the given 1 year slot, or that we can not stay for more than 6 at a stretch.

3. If we cannot stay beyond 6 months at a stretch, how long we need to be out of US, before entering US?. Is there a restriction that we need to move only to our host country??

Kindly get back to this. If there is any legal sites for this, do mention.

Lookig forward for your reply
Thanks and Regards
Aravind

 

[billy__bob]

There are specific rules that apply to foreigners working in the US. Please visit the irs.gov web site for all the detailed info.

As far as I remember, when you live in the US for more than 6 months out of a year, you are treated as a citizen and thus have to pay tax here. When your home country has a tax treaty with the US you can deduct your tax paid in your home country from the tax paid here in the US.

It really depends what works best for you. Please consult a CPA with international tax experience. Also, regarding the six month rule, it does not need to be in one stretch as long as you can prove that it was less than six months out of a year.