The US Becoming Socialist By Default ? What to Do....

Quote from hofficita:

It was 10 years taxation on US source income. The law was recently changed. Now if you renounce, you must pay tax on all unrealized capital gains. I do not believe the 10 years of tax is still in effect.
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The actual laws are rather confusing and there are various tests and exceptions to determine what you owe. It depends on how much you make, how much you have, and how much time you spend here. So there is no one answer for everyone, but the basic point I was trying to make is that you can't just walk away and think you are free of the IRS, which is what many people think.
From the government website:
"P.L. 104-191 contains changes in the taxation of U.S. citizens who renounce or otherwise lose U.S. citizenship. In general, any person who lost U.S. citizenship within 10 years immediately preceding the close of the taxable year, whose principle purpose in losing citizenship was to avoid taxation, will be subject to continued taxation."
 
Quote from opt789:

The actual laws are rather confusing and there are various tests and exceptions to determine what you owe. It depends on how much you make, how much you have, and how much time you spend here. So there is no one answer for everyone, but the basic point I was trying to make is that you can't just walk away and think you are free of the IRS, which is what many people think.
From the government website:
"P.L. 104-191 contains changes in the taxation of U.S. citizens who renounce or otherwise lose U.S. citizenship. In general, any person who lost U.S. citizenship within 10 years immediately preceding the close of the taxable year, whose principle purpose in losing citizenship was to avoid taxation, will be subject to continued taxation."
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The first 80,000 is tax free via the ex-pat exemption. So yes, you actually can walk away (up to a certain amount). Just make sure you move to a country that has a tax treaty with the US to get the exemption.
 
Quote from Maverick74:

The first 80,000 is tax free via the ex-pat exemption. So yes, you actually can walk away (up to a certain amount). Just make sure you move to a country that has a tax treaty with the US to get the exemption.
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The limit is now a little more than that, and it also pertains to US citizens living abroad, not people who give up their citizenship. The housing expense limits and income phase outs were recently changed so it is much more costly than it used to be.

I was talking about giving up your citizenship for people who actually make money. If you give it up and move to another country you are automatically assumed to have done it specifically to avoid taxes and are subject to paying US taxes for 10 years. As I said there are income and net worth limits, as well as the possibility of gaining exemptions so only a qualified professional could give specific advice.
 
Quote from opt789:

The limit is now a little more than that, and it also pertains to US citizens living abroad, not people who give up their citizenship. The housing expense limits and income phase outs were recently changed so it is much more costly than it used to be.

I was talking about giving up your citizenship for people who actually make money. If you give it up and move to another country you are automatically assumed to have done it specifically to avoid taxes and are subject to paying US taxes for 10 years. As I said there are income and net worth limits, as well as the possibility of gaining exemptions so only a qualified professional could give specific advice.
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Right, I know. I was already aware that one cannot give up their citizenship for tax purposes which is why I suggested one becoming an ex-pat. As long as your income is not locally based (should not be an issue for most traders) then one will not have to pay taxes in the country they choose to move to and they are exempt for the first 80k or 100k of their US income. May not seem like a big deal, but another way to look at is, the US Government is actually paying you 40k to 50k a year in cash to get the hell out. Not a bad deal.
 
It's quite easy to get around the "I left for tax reasons" provision that allows the US gov to seek tax for that 10 year period.

I have a couple of freinds here in asia who have just done it. you just need to be creative, and have a good lawyer to help.

Another point is to restructure your affairs a few years out, if you can, that way it is harder for them to say you just did it for tax reasons.

You Americians are the most screwed by their gov for ex pat living, so much for the good Ol' USA for been the home of capitalisum and the free, what a joke.

Anyway good luck to those that escape.
 
Quote from wildkactus:

It's quite easy to get around the "I left for tax reasons" provision that allows the US gov to seek tax for that 10 year period.
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I've heard about this provision, but I can't fathom how it would be that you've become a citizen of another country and earn your income outside the USA... how is it that the US can tax such a person for 10 years?
 
Quote from wjk:

I would add to this statement that not only are Americans uninformed, but disinformed. Most major media are now propaganda machines for the candidates that fit their ideology. I believe we wouldn't have half the senators, reps, and many past presidents if we had an unbiased, honest media. Most people will not inform themselves, but will vote what they hear from the media.

Wonder how many people posting have actually been to either candidate's senate web sights. When my republican friend fell in love with Obama for no reason other then he liked the way he sounded giving speeches, I decided to visit Obama's senate web sight so I might send links about how everything my friend stands for is opposite of Obama's beliefs. Finally got through to him in the end, I hope.

http://obama.senate.gov/

http://mccain.senate.gov/public/

I read articles on line from both left and right about him. The voting record of a politician speaks volumes. IMO, a voting record filled with "presents" doesn't warrant a vote at all. It demonstrates weakness, or it hides a belief for political expediency.

Didn't take me long to realize I would have problems voting for him just on his voting record, even though I had already made up my mind based on the company he kept for many years. Yet, many of the things I read about this guy are not reported by most. Those that do report these things are vilified by the big boy media.

Until, and if we ever get an honest, unbiased media, we will not really know who we are voting for unless we take a little time and do a little homework. Many won't do that, thus we deserve what we get. Fucked.

I considered sitting this one out. I honestly hate voting lesser of evils, but even though I'm not a fan of Mccaine's record, he will take less from me then his opponent. That is enough to hold my nose and pull the lever.

Ask yourself this question. Which party is more likely to lower the level we define as wealth? You wont have to make more money to become wealthy under a certain party. They will define down wealth to increase the givers and reward the takers.
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What in particular did you not like about Obama's voting record?
 
Not one satisfied customer on this thread SO far ?

Never easy being a " has been "

The old saying of - be nice to others on the way up because you will meet them again on the way down - springs to mind !

Cheer up guys it's only money !!
 
Quote from gnome:

I've heard about this provision, but I can't fathom how it would be that you've become a citizen of another country and earn your income outside the USA... how is it that the US can tax such a person for 10 years?
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because they think they can.

It only relates to US sourced income, from what I have read it only applies if they prove that the reason of the change was to evade US tax.

there has also been some changes of late, so could have changed.
 
If you are really bored with a faily easy hum-drum life then don't go West anymore go East !!!!!
The amount of money sloshing about for the toughest is truly amazing.
It's a whole new world of paying off officialdom, paying off the mafia and grabbbing a share of the pickings !! If you can live that long. A bit like the old West must have been like !!
There is little recourse to the law if your neighbour is threatening you unless their orders from ??? says they better do something.
If you hate law and order, socialism etc. etc. then Russia is just the place for you if you're tough enough !
So don't moan too much if you're a wimp the alternatives are MUCH worse
 
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