4 ms·
The IRS taxes americans no matter where they are or where they take their money. The US is only one of two nations in the world with citizenshp based taxation.
by bawana 1y ago
The IRS taxes americans no matter where they are or where they take their money. The US is only one of two nations in the world with citizenshp based taxation. And if you want to renounce your citizenship, 35% exit tax. The only solution is to make a foreign corporation (Apple keeps its income in Ireland for example) and hide your money there (The City of London does a brisk business setting up corps in their old colonies - when the IRS comes knocking, the City of London plays dumb)
- akvadrako 1y agoIt's also not that simple for an individual. If you own more than 10% of the corporation you get hit with CFC rules, a base 37% tax on gains. Or PFIC rules if it's passive.
- pas 1y agohttps://en.m.wikipedia.org/wiki/Foreign_earned_income_exclusion https://en.m.wikipedia.org/wiki/Foreign_earned_income_exclus... a tax credit of more than 130K USD ... for most expats this seems like completely negating their US taxe burden, no?
- bawana 1y agoI guess investment income doesnt count. Dont know about stock options your company gives you but that usually isnt considered earned income