Offshore & Tax

If your net worth and income are below some levels set by the IRS you can give up your citizenship and it won't be considered being for purposes of avoiding taxes. I think you still have to pay for a few years... I'm researching a number of places where I would much like to live possibly.

After you establish a residence and citizenship you can travel freely and never have to think about the IRS.
 
Quote from Fractals 'R Us:

If your net worth and income are below some levels set by the IRS you can give up your citizenship and it won't be considered being for purposes of avoiding taxes. I think you still have to pay for a few years... I'm researching a number of places where I would much like to live possibly.

After you establish a residence and citizenship you can travel freely and never have to think about the IRS.
More...
The Rangel exit tax (became law in June) presumes that anyone who ends his or her U.S. citizenship and; (1) who paid more than $124,000 in net taxes for the previous five years, or (2) has a net worth of more than $2 million, is a tax traitor who did so with the intent to avoid paying taxes. No proof of intent is required. With some variations, the tax is about 50% of the value of all the expatriate's assets wherever located.

Only two countries have enacted such an exit tax like this before, Soviet Russia and Nazi Germany. Welcome to the new world order. :)

You need to pay taxes for 10 years after leaving.

http://baumanblog.sovereignsociety.com/2008/09/offshore-oppone.html
 
i've noticed there is a definite advantage for foreigners who immigrate to the US. Green card, Dual citizenship...

Make a bunch of dough and return to their former country.
US and IRS are cool as long as taxes are being paid somewhere.

If your born in the US it almost seems you are at a disadvantage.

One particular example is a huge Social Security Loop Hole.

People who retire to foreign countries and pass away continue to receive benefits. In the US.. issuance of death certificates automatically trigger notice to SSA.
 
Quote from PocketChange:

i've noticed there is a definite advantage for foreigners who immigrate to the US. Green card, Dual citizenship...

Make a bunch of dough and return to their former country.
US and IRS are cool as long as taxes are being paid somewhere.

If your born in the US it almost seems you are at a disadvantage.

One particular example is a huge Social Security Loop Hole.

People who retire to foreign countries and pass away continue to receive benefits. In the US.. issuance of death certificates automatically trigger notice to SSA.
More...

If you have a US green card, by law you need to pay US taxes.
 
Quote from Trader KGB:

The Rangel exit tax (became law in June) presumes that anyone who ends his or her U.S. citizenship and; (1) who paid more than $124,000 in net taxes for the previous five years, or (2) has a net worth of more than $2 million, is a tax traitor who did so with the intent to avoid paying taxes. No proof of intent is required. With some variations, the tax is about 50% of the value of all the expatriate's assets wherever located.

Only two countries have enacted such an exit tax like this before, Soviet Russia and Nazi Germany. Welcome to the new world order. :)

You need to pay taxes for 10 years after leaving.

http://baumanblog.sovereignsociety.com/2008/09/offshore-oppone.html
More...


I personally don't want to give up my US citizenship. I have lived all over the World, but the US is home, and always will be.

HOWEVER, if I was to do it:

1) the Marc Rich method. Move assets abroad, and then tell the US to fuck off. Don't come back.

2) The Canadian method. If you change to an even higher tax regime, you can't be considered a tax traitor. Get taxed high for whatever number of years it is that Canada requires when becoming a citizen, and then live outside of Canada.

Only the US and Philippines tax citizens living abroad. Easy to pop in and out of the US as a Canadian as well. Also, when you travel with the Maple Leaf on your backpack to avoid being a target, you won't be lying (yes, I have done this).

Jay
 
You must log in or register to reply here.
Back
Top