Thinking about leaving the U.S. and becoming a resident of another country?
Or renouncing your U.S. citizenship?
Or giving up your long-term residency and expatriating?
You can take these steps if you want to but be aware that they’ll have serious tax consequences you need to know about.
My advice? Before you pack your bags and wave goodbye to Uncle Sam, take a minute and read my new article titled Tax Tips: Want to Leave the U.S.? You May Have to Pay These Taxes.
Three ways our fact-filled article can help you:
- We’ll explain “covered expatriate” status. Once you give up your U.S. citizenships, the IRS will consider you to be either an “expatriate” or a “covered expatriate.” If you’re an expatriate you’re good to go. Literally. If you’re deemed to be a covered expatriate, you’ll be on the hook for a hefty exit tax. All will be explained when you read the full article.
- We’ll tell you all you need to know about the exit tax. Under the exit-tax rules, the government requires you to pay income taxes on the unrealized gain on all your property, exactly as if you sold that property the day before your departure. You’ll get all the details when you read the full article.
- We’ll tell you how to ease the pain. Slightly. Eligible deferred-compensation items like IRAs, pensions, and stock option plans are not taxed at the time of expatriation. But you’re not out of the woods yet. You’ll get the whole story when you read the full article.