Prince Harry could face a monumental tax bill unless he takes a breather from his £11 million home in the United States, according to an American top layer. The Duke and Duchess of Sussex have relocated to Los Angeles in May following living in a rented mansion in Vancouver, Canada. The Sussexes were first reported to be residing in the United States at a mansion in Beverly Hills owned by Hollywood actor Tyler Perry.
The 183-Day Threshold
The prominent Los Angeles lawyer, David Holtz, stated that the duke would have to begin paying huge taxes once he has resided in Los Angeles for 183 days. The prince has been living in the US for at least 151 days since staying at the Hollywood mogul's mansion on May 7 and is now mere weeks away from reaching the 183-day mark.
According to Los Angeles tax lawyer David Holtz, "You can safely assume that someone at the Internal Revenue Service [IRS] is looking very closely at him. This is a big deal," reported Steve Gruber.
The former royal would be required to pay the United States federal and Californian state taxes imposed by the "substantial presence test." This requires any foreigner who spends 183 days in the US to pay US taxes on global earnings.
According to another tax expert, "Harry's bill could be monumental and could open up a can of worms for the Royal Family because the IRS will want to know all his sources of income. That's not just his Netflix deal, but any monies he might have received in gifts from Prince Charles and any trust funds, savings accounts or other assets he has in the UK. That means the Royal books will be open to scrutiny."
Meghan Markle a United States Taxpayer
Prince Harry and Markle have an estimated joint worth of £20 million. The Duchess of Sussex is a taxpayer of the country but Prince Harry would have to declare his income to the Inland Revenue Service (IRS).
The news that he is liable to US taxes arrives as he was criticized after negotiating a $203 million Netflix deal. Holtz described that once could presume that the IRS is overseeing him which is an important deal, reported Happy.
If he does not return to the United Kingdom, Prince Harry could face an appalling tax bill. Holtz stated that if he would stay in America for 183 days, he is done, reported Daily Star.
The tax expert noted that the tax bill could open up a can of worms for the British royal family because the IRS would want to probe into his sources of income.
Along with negotiating a multi-year deal with Netflix, it is believed that the couple received $1 million for an event speech earlier this 2020.
Prince Harry's Visa
Prince Harry's visa is a key factor as if he arrived in the United States on a diplomatic visa, he is exempt. However, if the visa was a 0-1 visa for individuals with "extraordinary abilities," then he will be accountable for the same taxes in the US as its citizens.
