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Exit or expatriation tax

Exit or expatriation tax

Old Mar 30th 2012, 9:47 pm
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Default US Exit or expatriation tax

My husband and I are green card holders currently living in the US but thinking of moving back to the UK. We've been told that if we've been green card holders for 8 years or more we have to pay an exit tax to the IRS which can be up to 30% of our worldwide assets. Does anyone have any experience with this or know if its even true? Any advice at all would be hugely appreciated as our accountant is unable to advise us on this. thanks!

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Old Mar 31st 2012, 11:56 am
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Default Re: US Exit or expatriation tax

Originally Posted by alicemcmk View Post
My husband and I are green card holders currently living in the US but thinking of moving back to the UK. We've been told that if we've been green card holders for 8 years or more we have to pay an exit tax to the IRS which can be up to 30% of our worldwide assets. Does anyone have any experience with this or know if its even true? Any advice at all would be hugely appreciated as our accountant is unable to advise us on this. thanks!
There is an exit tax...sorry I don't know the details. I would change your accountant...you should be using a tax professional who has experience in UK/US taxes.
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Old Mar 31st 2012, 2:19 pm
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Default Re: Exit or expatriation tax

A quick lookup seems to indicate that this applies mainly to wealthy people or those who have been evading their US tax liabilities. Look it up, see if you come within the danger zone, and if so seek advice!
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Old Apr 2nd 2012, 3:53 am
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Default Re: US Exit or expatriation tax

Originally Posted by alicemcmk View Post
My husband and I are green card holders currently living in the US but thinking of moving back to the UK. We've been told that if we've been green card holders for 8 years or more we have to pay an exit tax to the IRS which can be up to 30% of our worldwide assets. Does anyone have any experience with this or know if its even true? Any advice at all would be hugely appreciated as our accountant is unable to advise us on this. thanks!
See:
http://www.irs.gov/businesses/small/...=97245,00.html

Are you sure you don't want to become US citizens before you move back? You can expatriate by losing (or giving up) your green cards, but then you cannot usually get them back if you change your minds.
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Old Apr 2nd 2012, 11:47 am
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Default Re: US Exit or expatriation tax

Originally Posted by JAJ View Post
See:
http://www.irs.gov/businesses/small/...=97245,00.html

Are you sure you don't want to become US citizens before you move back? You can expatriate by losing (or giving up) your green cards, but then you cannot usually get them back if you change your minds.
FATCA forms a almost in themselves a good enough reason not to become a US citizen
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Old Apr 8th 2012, 4:05 am
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Default Re: Exit or expatriation tax

My understanding is that you need to declare that you do not owe any past Federal or State taxes. Providing all is up to date then there is no exit tax. At least that is the way i have read and understood it.
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Old Apr 8th 2012, 1:19 pm
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Default Re: Exit or expatriation tax

Originally Posted by dragon5254 View Post
My understanding is that you need to declare that you do not owe any past Federal or State taxes. Providing all is up to date then there is no exit tax. At least that is the way i have read and understood it.
Everything you need to know is in the instructions to form 8854

http://www.irs.gov/pub/irs-pdf/i8854.pdf

You would file 8854 if you are a greencard holder leaving the US
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Old Apr 8th 2012, 3:31 pm
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Default Re: Exit or expatriation tax

Originally Posted by nun View Post
Everything you need to know is in the instructions to form 8854

http://www.irs.gov/pub/irs-pdf/i8854.pdf

You would file 8854 if you are a greencard holder leaving the US


Thanks for the link. Nothing is simple in this country!!! You are damned if you do and damned if you don't!
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