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If you dislike the idea of being taxed while residing abroad, how about the idea of being "exit taxed" for the right to stop being taxed: "Relinquishing U.S. c
by FluidDjango 17y ago
If you dislike the idea of being taxed while residing abroad, how about the idea of being "exit taxed" for the right to stop being taxed:
"Relinquishing U.S. citizenship is a fairly simple process: after filling in a few forms, and in some cases, paying an exit tax (based on the applicant's worldwide income and assets)..."
Wonder how much that amounts to?
- ojbyrne 17y agoI don't know the specifics but I do know it has one particularly onerous clause for people in startup land. Any illiquid assets must be sold (perhaps just valuated) and capital gains paid on the proceeds.
- CalmQuiet 17y ago> based on income and assets In other words, "Sure, you can leave. Just send us a chunk of yourself... even if you made it on foreign soil and using foreign resources."
- geoka9 17y agoExactly my sentiments. However, since it says "in some cases", maybe this refers to paying the regular taxes due before relinquishing.
- jaaron 17y agoNo, the exit tax can be pretty bad: "The so-called ‘mark-to-market' tax will apply to the net unrealized gain on the expatriate's worldwide assets as if such property were sold (the ‘deemed sale') for its fair market value on the day before the expatriation date."[1] [1] http://www.withersworldwide.com/news-publications/324/exit-tax-u-s-expatriates-to-become-law.aspx http://www.withersworldwide.com/news-publications/324/exit-t...