In this video we will walk you through how to model assets that live outside of your client's primary tax jurisdiction.
Transcript:
In today's training, I'm going to walk you through how to use Voyant's new Offshore or Other Taxable account type in our Global offering.
To begin, click the + button in the bottom-right corner of your screen. Select Savings & Investments, then choose Investment.
From the Type drop-down menu, you'll now see a new account type called Offshore or Other Taxable.
This account type is designed for clients who own investments outside the jurisdiction where they are domiciled. It allows you to apply custom tax rates to an individual account, so withdrawals can be taxed according to the rules that apply to that specific investment.
Let's look at an example.
Suppose my client owns an offshore investment in the United States. First, I'll give the account a name. Next, I'll use the built-in Currency Converter tool to convert the account value from U.S. dollars to euros.
Let's say the account is worth $1,000,000 USD. The Currency Converter will automatically calculate the equivalent value in euros for me. You can also use the converter for the purchase value if you'd like, allowing both values to be entered in the plan's base currency.
Next, I'll enter the tax rate that applies to this account. Depending on the investment, you can specify either a Capital Gains Tax rate or an Income Tax rate.
In this example, I'll enter a 15% Capital Gains Tax rate to reflect the U.S. tax treatment for this investment. Then I'll click Done to save the account.
Now that the account has been added to the plan, let's look at where you can review its details in Year View.
First, open the Investments tab. Here you'll see all of your client's investments, including their year-end balances, net growth, and any withdrawals. You can use the slider at the bottom of the screen to move through the plan year by year and review these values over time.
You can also review the taxes associated with the account in a couple of places.
The first is in the Expenses section, where you'll see any taxes generated by the account for the selected year.
You can also review these taxes in the Taxes section.
Near the top of the screen, you'll see the Cumulative Offshore Tax, which represents the total offshore tax paid from the beginning of the plan through the currently selected year.
If you'd like to review the offshore tax for a specific year, scroll to the bottom of the Taxes screen. There you'll find the Offshore Tax for the selected year. Clicking the expansion arrow will display a detailed breakdown showing which accounts generated the tax and the amount attributed to each one.
I hope you found this overview helpful.
If you have any questions or need assistance, please contact us at support@planwithvoyant.com. Alternatively, within the application, click your client's name, select Request Support, enter your question, and be sure to Share Client Access so our team can investigate your plan.
Thanks for watching!