Year-End Tax Checklist for Brazilians With Investments or Business Activities in the United States

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As 2024 comes to an end, this is the ideal time for Brazilians who invest, run businesses, or spend part of the year in the United States to review their financial and tax situation. Small actions taken before December 31 can reduce taxes, prevent compliance issues, and ensure a more organized and efficient start to 2025.

Ace Advisors supports Brazilians in all areas of U.S. international taxation and cross-border accounting. The firm’s partners bring more than 25 years of combined experience advising investors, expatriates, and Brazilian entrepreneurs. Below we have summarized the most important year-end actions in a simple and practical way.

1. Check Whether You Became a U.S. Tax Resident

Many individuals spend extended periods in the United States and end up being treated as U.S. tax residents, meaning they are taxed on their worldwide income. Before year-end, it is important to calculate your U.S. presence days, evaluate whether you may still qualify as a nonresident for tax purposes, and adjust travel plans between December and January to avoid unwanted changes to your status in the following year.

2. Evaluate the Timing of Income — Important for Business Owners

If you own a business or work as an independent contractor in the U.S., think strategically about when to receive income and when to pay expenses. You may:

• accelerate income into 2024 if you expect higher earnings in 2025,

• defer income into 2025 if you are already in a higher tax bracket this year,

• accelerate operating expenses to increase deductions for 2024, and

• review depreciation opportunities that reduce taxable income.

3. Review Investment Gains and Losses

If you invest in stocks, funds, crypto, or real estate, analyze your 2024 gains, verify whether you have losses to offset them, and decide whether it is better to sell certain assets before or after December 31.

For Brazilian nonresidents, gains from U.S. stocks are generally not taxed, while real estate and business income in the U.S. are.

4. If You Invest in Real Estate: Review Depreciation and Potential Sale Timing

U.S. property owners should confirm they have taken full advantage of available depreciation, evaluate whether their current ownership structure remains optimal for 2025, and consider whether a potential sale should occur in December or January based on tax impact.

5. Retirement Contributions: What Must Be Done by 12/31 and What Can Be Completed by April

Retirement contributions are an effective strategy to reduce taxes and strengthen long-term financial planning.

• Employee contributions to employer-sponsored plans such as 401(k) must be made by December 31.

• Contributions to IRAs (Traditional or Roth) and SEP IRAs may be made until April 2025 and still count for 2024.

• Plans such as Solo 401(k) must be created by December 31, even though contributions can be made the following year.

6. If You Own Companies in Brazil: Check-the-Box, GILTI, Distributions, and Accounting Records

Brazilians who become U.S. tax residents and maintain companies in Brazil must pay special attention to year-end planning. Depending on the entity type, it may be possible to elect a more efficient tax classification (check-the-box), avoiding double taxation and reducing the risk of automatic taxation of undistributed profits.

U.S. rules may require annual taxation of accumulated earnings depending on ownership structure and level of control.

It is also important to evaluate whether distributing profits before or after year-end is more advantageous.

For accurate U.S. tax filings, you must obtain updated Brazilian accounting records: balance sheet, income statement, statement of changes in equity, and documentation of contributions and distributions. These documents are essential for calculating attributable income, determining accumulated earnings, and evaluating the impact of rules such as GILTI.

Companies owned through spouses, children, or family holding structures must also be reviewed, as they affect control rules, income attribution, and reporting obligations.

7. Estate Planning and Gifts

For Brazilians with real estate or investments in the U.S., estate tax is a critical issue. Nonresidents have a very low exemption and may face significant taxation. At year-end, review ownership structures, consider gifting strategies, evaluate asset-protection mechanisms, and prepare for potential legislative changes in 2026.

8. Organize Foreign Documents and Accounts (Including FBAR and Detailed Investment Records)

Year-end is the best time to organize all financial information held outside the U.S. American tax rules require U.S. tax residents to report foreign accounts and investments, and many transactions exempt from reporting in Brazil must be fully disclosed in the U.S.

FBAR requires filing if the highest combined balance in foreign accounts exceeds US$10,000 at any point during the year.

To comply properly, gather the highest annual balance of all bank accounts, investment accounts, brokerage accounts, private pension plans, financial applications, and joint accounts.

You must also keep detailed records of all Brazilian stock transactions: purchase dates, quantities, cost basis, sale dates, sale quantities, and sale amounts. Unlike Brazil, there is no exemption threshold — all transactions must be reported.

For investment funds, including funds-of-funds, you must retain complete statements showing dates, amounts, and share quantities for each contribution and each redemption. The “come-cotas” tax is treated as a partial redemption for U.S. purposes and must be recorded.

For Brazilian companies, gather balance sheet, income statements, equity statements, history of capital contributions, distributions, and accumulated profits. Proper organization avoids penalties, delays, and rework, allowing accurate U.S. tax filings.

Plan Ahead for 2025

Before the new year begins, review whether your current structure is efficient, project your 2025 income, plan withdrawals, salaries, or distributions, and evaluate restructuring opportunities between Brazil and the U.S. to reduce taxes and increase asset protection.

Ace Advisors guides clients with the deep expertise of its partners, who together have over 25 years of exclusive experience in international taxation for Brazilians.

Conclusion

For Brazilians with financial or patrimonial ties to the U.S., year-end tax planning is essential to reduce taxes, avoid risks and penalties, organize investments, and protect family assets. Ace Advisors is ready to help you close 2024 safely and begin 2025 with clarity and confidence.