If you are a US taxpayer, you have to pay US taxes on your income, regardless of its source, regardless of where you live in the world. However, there are ways in which you can lower your US tax liability. As an example, for earned income, you could lower your liability with the Foreign Earned Income Exclusion, which will allow you to exclude a certain dollar amount of income from your US tax liability. In addition, there are ways that you could use your IRA to purchase land within Belize.
For all tax related issues, it’s a really good idea to check with your Certified Accountant in the United States who’s an expert in the US tax law.
(Goffs Caye, Belize, pictured.)