Turns out, the IRS doesn’t care if you’re royalty.
Meghan Markle is getting ready for her May 19 wedding to Prince Harry, but there’s a lot more than a royal title that will come with her new life. After she ties the knot with the Prince, the bride will have to abide by some new tax rules.
According to The Wall Street Journal, Markle is going to report the following things to the IRS once she is officially an expat with a spouse who is a non-U.S. citizen.
Any tiara or diamond bracelet Queen Elizabeth gifts (or loans!) her.
Her half of the value of the cottage she shares with Prince Harry at Kensington Palace.
Any debit or credit card she has that is linked to a bank used by the royals with more than $10,000 in it.
A vacation at one of the Queen’s castles.
Luckily, the future bride probably won’t have to pay extra taxes on these things—but if she does not report them, she could get in serious trouble with the IRS. Additionally, Markle might could possibly owe tax on the value of the benefits she receives from the family’s assets, which can go up to a rate of 37 percent.
“IRS agents are highly aware of these rules,” Dianne Mehany, a tax lawyer with Caplin & Drysdale, told The Wall Street Journal.
The bride plans to start the process of becoming U.K. citizen after she gets married, but it will take three years for her to obtain citizenship. Markle has the option of renouncing her American citizenship completely, or can remain a citizen of both America and the U.K., which would give her future children dual citizenship.
Luckily with Tax Day passing just before the royal wedding, Markle will have plenty of time to figure out how to manage these hairy IRS rules.