How the US Exit Tax Works when Expatriating
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- Опубліковано 8 вер 2024
- nomadcapitalis...
Wealthy US citizens looking to expatriate may be subject to an exit tax upon renouncing their citizenship. If you have a high net worth or a high salary, these are the assessments to be made, forms to be filed, and rules to be followed.
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One has to wonder if this is what the Eagles were singing about in the last lines of 'Hotel California':
"Relax', said the night man.
'We are programmed to receive.
You can check out anytime you like...
...but you can NEVER LEAVE!"
(cue long Glenn Frey guitar solo outro)
No difference between a feudal serf, and a U.S. citizen. Both are tied to the land. Should be that if you don't live in the country for a year you become disconnected, free, and no longer owe taxes, or forever file papers. There needs to be a change in the law.. Land of the free, and home of the brave, no, I say land of the fee, and home of the slave.
Andrew : yes please I would like if you did a video on the billionaire on renouncing.
Here's a link to a story about Oleg Tinkov:
www.justice.gov/usao-ndca/pr/founder-russian-bank-charged-tax-fraud
Given that he's a Russian citizen, it would seem that he could just go live in Russia; it seems very unlikely that if the US government asked the Russian government to extradite him, the Russian government would comply.
We want to hear from you on that Billionaire tax evasion case❤️
❤
Jub sounds like a good story
Well we can assume that if he went back to russia, he got away with it lol
Jesus U.S Taxes system brutal
Yeah, although quite a lot of people have no federal tax obligation at all; many in fact RECEIVE money from the IRS (e.g., the EITC benefits).
They did try to tax Jesus retroactively.
@@dlukton The bottom 50% pay no taxes, the top 1% pay 40% of all taxes. Good deal for the lower class, bad deal for middle/upper class.
They have to in order to fund an unlimited number of wars.
@@Dave-yw2wc they tax the rich as if they didn’t earn the money they have it’s ridiculous. So what if they have more money than most people why do they have to pay more it’s a bad deal
Nomad team: Would love to hear about Andrew's start. Tell a story about how you started/sold businesses (pool boy service). Would help video SEO even know team nomad is getting a lot of views.
He did one on that already.
So to summarize - unrealized capital gains get taxed at time of renunciation.
The jig is up. People gonna start jumping off board.
Stay away from me when I'm filling out my FBAR. I almost never feel that level of hatred and anger. America really blows chunks.
As messed up as it sounds I think America is the only country in the world where you are better off not being a citizen than being a citizen. Every other country on Earth there are specific perks and benefits to being a citizen rather than a permanent resident. The exception to that is probably the US, I think you're better off just being a permanent resident here rather than an actual citizen
I think it is best to renounce before acquiring assets offshore. What do you think?
At least Canada we don't have this system of extortion!
@The Lion Some representative are dropping hints about it but it often gets shutdown in parlement... Charter of rights is in the way...
Please tell us about the Russian guy!
Oleg Tinkov
Great video, Andrew. I have been considering renouncing my US citizenship. I am wondering your thoughts on this: I am a crypto holder. I moved to Puerto Rico a few years ago to avail myself of 0% on capital gains. If, in the future, I should decide to renounce my citizenship, I presume I would not owe any exit tax (at least as far as any capital gains are concerned) because all my capital gains are at 0%. What are your thoughts on this?
That’s interesting. I’d like to know this too. I am assuming they will find a way to at least tax capital gains up until the point of moving but I am guessing you’ll be toast on the lot.
Following.
@@stephena5752 Yes, capital gains are still due up until the point of moving. Only gains accrued after moving are 0% eligible.
IRS form SS5 changes status...legal alien allowed to work. Sign everything as beneficiary.
you saying accidental American reminds me of mandatory Iranian 😂
What about the case of someone who has a net worth of $5 million... and, about a year before renouncing, he takes $4 million of that and puts it in gold and cryptocurrency; and then upon renouncing, he "neglects" to tell the IRS about the gold and cryptocurrency. Of course, in order to buy all that gold and crypto, he'd have to go through the banking system, and the banks would have a record; indeed, the banks might even just inform the IRS at the time of the transaction, because it could be viewed as a "suspicious activity".
Exit tax: like that boss at the end of several Mario levels.
What happens to funds contributed to Roth IRAs?
The covered expat criteria of "net worth over $2 million" is too low in this day and age. Since when $2 million test has been around?
Thanks for the video's please make a video on that billionaire please 😎
Keep up the good work!
Well thank goodness I don't have anywhere near a couple million dollars to trigger the tax lol....one day though, I'll figure this shit out.
4:03 It could be worse: be born a male baby to a mindless Singapore PR holder and, 20 years later, be arrested on the spot as a draft dodger when doing a simple backpacking trip to Singapore...
You got your info wrong. Even 1st generation citizens are not subject to military duties; much less PRs. Your quoted individual was probably the son of a 1st generation citizen, who accepted the conditions of citizenship, namely that his sons would be subject to military service, then later reneged his obligations to the state. Go to the Singapore Ministry of Defence website, and verify it for yourself, rather than listen to some hearsay; or worse, regurgitate that questionable hearsay.
@@keffinsg are you sure? www.mfa.gov.sg/Overseas-Mission/Chennai/Consular-Services/National-Service-Obligation
Andrew can you do more about life after you sold your business for millions? How about the tax burden after a business is sold? How about a nomad selling his business and how it differs from a American selling his business? 😁
Andrew....how about a situation where on.spoise is US Citizen and other is not?..would it LEGALLY save taxes?
My NW is ~$1.5M. Taxable income ~$180K. Plan to move to Taiwan or Japan in a couple years. I'm young. Should I keep my NW below $2M meanwhile? First time I am hearing this.
Doesn’t matter unless you plan to renounce
Thanks Andrew, I'm not even American and I found this useful
Just ask the Fed to print our tax bill
What will they do when all the creators have left and all the takers have turned up?
File 1099C to cancel the debt. Then do another 1 and mark it correction on the top of the form. They pay you the amount of the debt; with users fee; interest. You are the creditor.
How does the exit tax impact Social Security distribution
You lose it
SS is for US livestock.
Escape the farm and you don't get it
What about 11,8 million lifetime gift exemption that you could use to bring your worth under 2mil before you renounce?
Great information; however, you never mentioned the rate or what the one time exit tax is? How much as a percent of your gross or net worth is it?
It can be as high as 23.8%
I won the Mega lotto in the nine figure range and I have the misfortune of being on food stapes , living of Social Security and living a assisted living facility .
I could claim it thru a Trust .
Came here from your webpage
when you say tax liability does that mean if you owed $168,000 per year in tax or does that mean if you simply earned $168,000 per year?
the irs takes no prisoneers
That $160K, is it per year or accumulated after 5 years ?
How does the US government know if you own foreign property?
You tell them under penalty of perjury. And the paper trail.
I left America with 11$ and no assets. Lucky me huh.
There has to be a way without expatriating.
Great content Andrew, thanks! Do you happen to know if Traditional IRA is counted in the net worth test or maybe a recommended expert I can speak to?
I have this question too regarding ROTH IRAs
I was wondering, if u had a business in the US and so u had to frequently go there, what citizenships would u consider getting?
Mexican or canadian
Please help. Someone reply please. We have made 150k per year the last 5 years, have a worldwide asset of 1.2 million, and are in tax compliance. We are moving to the Netherlands. We want to keep the 1.2 million invested and collect dividends to pay for life. Will we be "exit taxed"?
No not unless you give up your US citizenships… 150k a year isn’t enough to trigger it either afaik.
What happens if you leave the US without paying? If you never go back can they do anything about it or does the government send agents after you in another country?
Interesting tax video, very over reaching as most people here know and realize, the USA tax structure.
I'm guessing that any money you have in a tax deferred retirement account is taxed at full value. Would that be taxed at the 20% capital tax rate?
Would somebody give me a plain example of the benefits of renounce US citezenship? Please
You can watch these:
ua-cam.com/video/8I7vOJ6d9xk/v-deo.html
ua-cam.com/video/XNnxKopwV7k/v-deo.html
@@nomadcapitalist Thank you!
So, what about recieving an inheritance, all funds, that would allow expatriation and getting another citizenship.. and then ability to renounce US? Would you wait to invest those funds until after renouncing to make the process simpler?
Good morning Andrew. How does one expatriate crypto assets without incurring taxes?
Are you a covered expatriot if you have a net worth of just less than 4 million and are renouncing with your wife. Is it 2 million for a couple or 4 million for a couple?
But do they tax people on a cash bank account? Is the exit tax only applying on capital gains or even cash?
What if at the point of renunciation, all assets held are solely cash ( over 2 mil)? Do you still have to pay exit tax on cash?
So you only pay the exit tax on the capital gains? So if I invested 2,000,000 in stocks and they are worth 16,000,000 but 5,000,000 is reinvested dividends do the dividends avoid the tax since they've already been taxed when paid out? So would my cost basis then be 7,000,000 so 8,000,000 (the unrealized capital gains) be what I'd pay the exit tax on?
Excellent strategy for tax avoidance !
Thanks, Amir!
often (silent "T") NOT OFF-TIN!!!!!!!!!!!!!!!!!!
Wonder when this Corona situation will be over, probably not til sometime next year
They are going to bring it back again. It is all to push the agenda of tracking and taxing everyone for world government.
Yep make video on tinkov thoughts
If renouncing for tax reasons is considered no-bueno, I'm just curious, what are the reasons for renouncing that the US government would consider legitimate?
If I was in that situation, I would simply say that the compliance headaches were too much. I could also say that I didn't agree with the direction the country was going.
Do you have to report precious metals and real estate?
Would also like to know
I want to hear about the Russian dude!
Does this apply to Green Card holders…
Fly to Canada and walk over or MEXICO and walk over the boarder
What if you are not worth even $ 50,000 will it still be hard to denounce?
From all the other related videos, as long as your ducks are in a row, no.
Can I still live in Canada and not pay tax on my foreign assets?
No.
If you paid tax in Canada, you can get a Foreign Tax Credit (From 1116) so that your tax owed to the US on earnings of your foreign assets will be reduced. Of course, it depends on what those foreign assets are (for example, non US-mutual funds get particularly harsh treatment from the IRS).
Andrew. How much Bitcoin you have?
Hoping China Crypto takes over USD