Prince Harry & # 39; faces a monumental tax burden unless he takes a break from the £ 11million Los Angeles mansion where he lives with Meghan and Archie
- Prince Harry faces a "monumental" tax bill if he doesn't take a break from the villa
- If Harry is in the US for 183 days, he is legally required to pay taxes there
- According to experts, he will have to take a break from his £ 11 million mansion next month
According to experts, Prince Harry could expect a "monumental" tax burden if he does not take a break from his £ 11 million Californian mansion next month.
The prince moved to Los Angeles with his wife Meghan and young son Archie in early May after leaving a rented mansion in Vancouver, Canada in March.
The couple was first reported to be in a sprawling Beverly Hills mansion owned by TV producer Tyler Perry on May 7 – meaning Harry has been in the US for at least 151 days as of today. When he reaches 183 days, he is legally obliged to pay taxes there.
LA's chief tax attorney David Holtz said last night, “You can assume that someone from the Internal Revenue Service [IRS] is looking at him very closely. That's a big deal. & # 39;
Prince Harry moved to Los Angeles with his wife Meghan and young son Archie in early May after leaving a rented mansion in Vancouver, Canada in March
Harry, 36, is required to pay US federal and California taxes on both US federal and California taxes as part of the "Substantial Attendance Test" in which any foreigner who spends 183 days in the country over a three-year period pays US taxes on worldwide earnings .
Another tax expert said, "Harry's bill could be monumental and open a can of worms to the royal family because the IRS wants to know all of his sources of income.
“This is not just his Netflix deal, but any money he may have received as a gift from Prince Charles, as well as any trust funds, savings accounts or other assets he has in the UK. This means that the royal books can be examined. The US Treasury Officer is far more eager than his UK counterpart. & # 39;
Harry and Meghan not only made $ 1 million for a speech at an event for JP Morgan in February, they also signed a multi-year deal with streaming giant Netflix.
In some reports, the deal is valued at £ 115 million, though The Mail on Sunday sees a value between $ 3 and 5 million a year.
The Duke and Duchess of Sussex, who jointly have assets of £ 20 million, live in a Montecito, California mansion that was purchased through a company registered at the address of Meghan's managing director Andrew Meyer.
Experts say the prince could face a "monumental" tax burden if he doesn't take a break from his £ 11 million mansion as he is legally required to pay taxes when he hits 183 days in the US
Mr. Holtz said, “If Harry has been in the US for 183 days, he's done. However, it can be assumed that lawyers and tax professionals have been studying this issue for months. & # 39;
A key factor is the type of visa Harry entered the US on. If it is a diplomatic visa, it is exempt. However, if it is a 0: 1 visa for those with "exceptional skills," they will have to pay the same taxes in the US as everyone else.
Another accountant said, 'Meghan is a U.S. taxpayer and her situation hasn't changed, but Harry has to tell the IRS about every penny he has received. This includes paying a gift tax on gifts of money received from Prince Charles and demonstrating any other source of income, including trust funds set up after Princess Diana's death. & # 39;
In the meantime, Harry sent a message of support last night to those taking part in today's London Marathon, which will see elite athletes competing on the track while 45,000 other runners will "virtually" compete on a track of their choice.
"Although we will not be together personally, we are together in spirit," he said. "And the amazing tenacity of runners from all over the world is a reminder of our strength and our sense of community in these difficult times."