digbydog

I have heard from a reasonably reliable source that there is a new 15% tax that has to be paid on your worldwide networth if you give up your residency in the USA and move away. This only applies if you do not have a USA passport. It also seems that this amount is set to increase dramatically in the coming Democratic term. Does anyone know of this tax?

ian-mstm

Your "reasonably reliable source" is an idiot. Think about this for a moment... how exactly will the IRS enforce this if you are no longer resident in the US? Further, if you are no longer resident in the US, why should you even care?

Ian

ITsWhatIDo

I think you have to declare your world-wide earnings to the IRS. It might be linked to that.

There was a recent rush for USC to give up their citizenship as the cost was going up.

Ray

I heard it was 25% I think I read it in The National Enquirer ....

Rete

Really? And where did you read this? Any sources available for us to check this out?

AdobePinon

You refer to the HEART Act of 2008. Yes, there is a provision for an exit tax when giving up residency or citizenship. I don't know how much the tax is.

"The Act applies to any expatriate if that individual (i) has a net worth of US$2 million or more; (ii) has an average net U.S. income tax liability of greater than US$139,000 for the five year period prior to expatriation; or (iii) fails to certify that he has complied with all U.S. federal tax obligations for the preceding five years "

You also have a "get out of jail free" card if you've been a resident for 10 years or less.

IIRC, this replaces the expatriation tax discussed in the Tax Guide for Aliens.

tamms_1965

I read that, too.....because my enquiring mind wanted to know.

digbydog

This Heart Of Act 2008 tax could really be a problem if you have a green card, any reasonable amount of assets worldwide and don't decide to go for the US passport. Appears not many people understand or even know about it.

See following link:

http://www.portfolio.com/news-market...-Workers#page1

Any thoughts please?

ian-mstm

US laws are *not* binding on any other country. It's unenforceable, and if you have more than $2Million in assets you can damn well afford an attorney. It only affects the wealthy and is, IMHO, an excellent reason to become a US citizen - since it *only* affects those with a GC.


Yes... the comment "green cards are for poor people" certainly endeared me to "their" side of the story.

Ian

Marocco

Perhaps they stll want to be able to visit the US, even though they no longer live there?

ian-mstm

For anyone who's interested in reading more... http://tinyurl.com/5v2rbv. The section starts the page before the page given in the link.

Ian

JAJ

I would have thought that the majority of those who obtain a GC, especially through employment, plan to become American citizens once eligible.