Exit tax to leave the country

peilthetraveler

peilthetraveler

There is an exit tax that most people do not seem to know about in this country. I thought I would bring this up, because this tax was only introduced 1 year ago this month, but nobody really seems to know about it. This tax a tax on EVERYTHING you own when you leave the country. So you sell your house, your cars, your boats, your plane, whatever...you are taxed on those proceeds. Right now there is a 600k exemption, so this only really affects people with more than that money at this time.... Its funny that this bill was passed (that was hidden in another bill actually) at the start of the collapsing of banks.

I guess the question is now...how long before we are like Cuba and not allowed to leave the country?
 
You need to reread the exit tax law. The exit tax is applied to the gains on what you sell, not the value of what you sell.
 
http://baumanblog.sovereignsociety.com/2009/05/the-american-exit-tax---one-year-later.html

Individuals who are within the grim numbers above are taxed enormously on everything they own, as if the person's worldwide assets had been sold for their fair market value on the day before expatriation or residency termination.

The Act allows exclusion of only $600,000 of net gain. That means a series of taxes could be imposed at the ordinary income rate of 35% or at a capital gain tax rate of 28% or more. (President Obama wants to raise both taxes). Gifts from an expat to those who remain in the U.S. may be subject to a new "transfer tax" at 45%. The Act even forces an expatriate to pay up to a 51% tax on distributions from retirement plans or other deferred payments.
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Additionally, if you're leaving the US for good, what the hell do you care about tax obligations? Just don't pay.
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I think the problem is that for most of the jurisdictions you'd want to live in, there are treaties that allow the IRS to still get to you and your assets.
 
Quote from GTG:

I think the problem is that for most of the jurisdictions you'd want to live in, there are treaties that allow the IRS to still get to you and your assets.
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100% right
 
Quote from GTG:

I think the problem is that for most of the jurisdictions you'd want to live in, there are treaties that allow the IRS to still get to you and your assets.
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Perhaps, but it is unlikely they'd ever try or even know where to find you. I know many expats living abroad (Eastern European countries mostly) that gave "the bird" to the IRS long ago and never paid taxes. They have no desire to ever go back.
 
Quote from peilthetraveler:

There is an exit tax that most people do not seem to know about in this country. I thought I would bring this up, because this tax was only introduced 1 year ago this month...
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no, it was introduced and passed during the clinton administration. it was only revised last year.
 
The exit tax is no excuse to not leave the IRS dictatorship, the amounts that you will save compounded over decades will be many time overs whatever exit tax you pay
 
Quote from Mom0/pH0x:

no, they still tax you even if you are not in the usa...
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If you give up citizenship correctly as far as I know there is no tax for 10 years. Its in the cases of tax avoidance that they tax you
 
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