The exit tax is often misunderstood and feared by expats, but it’s essential to note that it’s applicable only to “covered expatriates” – not every person who renounces their citizenship.
f you do not fall under the covered expatriate definition, you will not be subject to the exit tax
net income tax liability
net worth of $2 million
ails to certify, under penalties of perjury, compliance with all US federal tax obligations for the five years preceding the expa
not a punishment for renouncing citizenship
ignificantly benefited from their US citizenship pay their fair share of taxes on their assets be
taxable capital gain on the deemed sale of your worldwide assets, and the first $767,000 of gains (adjusted for inflation) is exempt.
is assumed to have sold all their assets at their fair market value and would be subject to tax on any gains
e first $767,000 of gains (adjusted for inflation) is exempt from the exit tax, per IRC Section 877A(a)(3)(A). This means that only gains exceeding the $767,000 threshold are subject to the exit ta
Gifting assets to reduce net worth below the $2 mill
ompliance with all US federal tax obligations for the five years preceding the expatriation year.
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