busbpa

I have been living in the US for 10 years, originally under a L1A visa and then a permanent resident card from 2007. I am looking to move to HK for the foreseeable future and do not anticipate relocating back to the US. The personal income tax rate in HK is considerably less than the US and I want to ensure that I am not taxed by the IRS on income received in HK. I understand that they will tax me on any assets that I have in the US. Can anyone help me? I understand this a minefield of variables.

One other thing to add is that my wife and children are US citizens and they will be with me.

ian-mstm

File form I-407. That should solve your tax issues... although if your wife is a USC, she is still required - by law - to file a US tax return annually. I'm not sure that would offset any advantage you'd get by relinquishing your status... but it might.

Ian

busbpa

I believe I have to limit my time back in the US for vacation or travel purposes. Are you aware of any details around this?

Noorah101

Once you relinguish your green card, you will no longer be a US PR. After that, you'll travel to the USA as a visitor, using the VWP (if you are from a VWP eligible country), or if you can't use the VWP, you'll need a B-2 tourist visa.

The VWP allows you 90 days at a time in the USA. The B-2 is usually allowed 6 months in the USA, but is up to the POE officer on duty that day.

After you formally relinquish your green card, YOU will no longer need to file a US tax return, but your USC wife will, if she has any income (in the USA or otherwise).

Rene

Michael

It is not quite that easy, There is an exit tax when you relinquish your green card. That was implemented after movie stars gave up their US citizenship to avoid taxes and then years later applied for LPR status when they wanted to return to the US (ex. Elizabeth Taylor). So check into the exit tax before he relinquishes his green card since it could possibly cost him more than maintaining it.

Generally an exit tax is based on your previous income and assets so it is sort of a wealth tax. The IRS is not going to left you off tax free if you probably made a lot of money in the US and now want a low tax status.

JAJ

The exit tax is generally a capital gains tax on unrealized gains (and some deemed distribution of retirement funds), as far as I can see. Normally you have to have had a green card for 8 years (any part of a calendar year a GC is held counts as a full year) to be liable to the tax and even then, only for those with high income/assets. But there still is probably a filing requirement to document this.
http://www.irs.gov/businesses/small/...=97245,00.html

Obviously, abandoning a green card isn't something you can change your mind about later on if things change, so you have to be sure the new country will work out and/or be happy to return to your home country. Definitely an area for professional advice.

Michael

Also relinquishing your green card also relinquishes your ability to receive social security and medicare benefits when you retire.

15. Green Card holders receive Social Security benefits when they retire, whereas a nonimmigrant visa holder does not.

http://www.visapro.com/Immigration-A...s/?a=1452&z=38

Eric S

Not completely true. US Citizens must file only if they had income over a certain amount, or in certain other cases.

See this for more details.

- Eric S.

ian-mstm

Yes - thanks for clarifying! I should have been more precise.

Ian