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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13116
Experience:  15years with H & R Block. Divisional leader, Instructor
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My mother is a dual Can/Us citizen she resides with my father

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My mother is a dual Can/Us citizen she resides with my father in Vancouver they are both in there late 80's, she is beside herself that she will half to pay American inheritance tax, if my father dies. She wants to renounce her US cit. ship. I told her I would get the scoop on whats true and whats not, I have a meddling sister that loves to stir the pot, and If I can show my mother, what the truth is she will be fine then she will rest easy. I thank you for your trouble. My mother has never had an income from the US in any form and files her tax form in the US every year. I thank you again and hope to hear from you soon.

Dale Stenersen
Submitted: 4 years ago.
Category: Tax
Expert:  Robin D. replied 4 years ago.

Robin D :

Hello and thank you for using Just Answer.
The legal part of surrendering Citizenship requires that your mother personally sit down with an Embassy or Consul representative to discuss the repercussions of surrendering her citizenship.

Robin D :

Generally, the actual act of expatriation for a U.S. citizen for tax purposes occurs when an individual formally renounces U.S. citizenship.

Robin D :

IRC § 877A subjects a covered expatriate to an income tax on the net unrealized gain on their worldwide property as if the property had been sold for fair market value on the day before expatriation. Losses may be taken into account, but only to the extent of gains. Thus, application of the expatriation rules may not result in a loss for tax purposes. The first $600,000 (indexed annually) of net gain is excluded for each expatriating individual.
If your mother has been filing her returns and does not have more than the $600,000 then she will not owe more tax based on her decision.

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