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Recent Expatriation Tax questions

Is there an exit tax on Canadians with an estate over 2M

Is there an exit tax on Canadians with an estate over 2M that renounce their US citizenship?

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Jason M. Tyra, CPA

Principal

Master's Degree

364 satisfied customers
In terms of exit tax card holder, my background is that, I

FOR JUDITH: In terms of exit tax for green card holder, my background is that, I never worked in the USA before 2008 in my life. Then I worked in the USA on H1B status from 2008 - 2012 and I was tax residence during these 5 years. Then I moved to another country to work from 2013 - 2014 and I was tax non-residence during these 2 years. Then I expect to come back to USA and get green card within 2015. In this case, I will be green card holder starting from 2015. Just wonder,- My understanding is that, if I hold green card for less than 8 years and cancel the green card, I do not need to pay any exit tax. If so, based on my situation above, if I cancel my green card before 2022 (let's say I cancel it in 2011), then I do not need to pay any exit tax, right?- I have worked in the US on H1B and been tax residence from 2008 - 2012. Does it matter on whether I will pay exit tax in the future or is it totally irrelevant?- If I cancel the green card in 2011, any other tax implications besides exit tax that I need to be aware of?Thanks for the help!

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Barbara

Enrolled Agent, Paralegal

5,754 satisfied customers
I left the US reasons in Mar 2015, giving up my card in the

I left the US for family reasons in Mar 2015, giving up my green card in the same month. I understand I file a 1040NR marked Dual status and attach a 1040 for the part of the year I was resident. No other forms ? Would I need to file another tax return for a subsequent if there ceases to be connected income?

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Robin D.

Vocational, Technical or Trade School

21,866 satisfied customers
My wife and I have been greencard holders since Nov 2006. We

My wife and I have been greencard holders since Nov 2006. We left the US for an assignment (I work for Shell) in the UK in May 2008 (so ~1.5 years after getting the green card). We lived in the UK until Sept 2010 (so ~2.5 years), and then moved to live and work in Oman until Sept 2013 (so again another ~2.5 years). In Sept 2013 we returned to the US, where we've lived since. When we first left the US in 2008 we secured a Reentry permit. When that expired, we have visited the US every 12 months, thus keeping our greencard status 'in tact'.I recently learned about 'expatriation tax', or 'exit tax', that a person can become liable for when giving up the permanent residency status (or citizenship), but that that liability only kicks in when the person has had the greencard for at least 8 out of the last 15 years, and that years spent abroad in "tax-treaty" countries does not count towards the 8 years.Over the period between getting the green card (2006) and present day, our net worth has roughly increased from 400k$ to 1,200 k$, and we have bought a vacation home abroad in that period. Other than the vacation home (~700k$), we have ~350k$ in stocks, and the rest on savings accounts.Since we got our greencard in 2006 I have always appropriately filed US tax returns.My questions:1) given that ~9 years have expired since we got our green card, but that we've spent ~2.5 years in the UK and ~2.5 years in Oman: when will we be liable for exit tax upon giving up our green cards? and2) what would the exit tax (approximately) be in our case?thxEJB

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Lev

Retired

Bachelor's Degree Equivalent

24,194 satisfied customers
Ok Thank you answer. The next thing we would like to

Ok Thank you for the answer. The next thing we would like to know more about is "exit tax", the advanced tax that we heard of when someone gives up their green cards (that they have held longer than 7 year), how does this work? it would be odd to be hitby a tax while still owning the house with no way to sell it (we have a legal rental contracts that runs out 2017)? also, our plan is to sell the house 2017 and re-invest the money in an apartment in NY city, and if I can remember correctly this taxes on thecapital gain will not be realised? and in the case you have to pay the advanced tax on the house when still owning it, will you receive back that tax when re-investeing the same or part of the money in new real estate in United States? thank you, Eva

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Robin D.

Vocational, Technical or Trade School

21,866 satisfied customers
I am filing the 1040, 2555 (Foreign Earned Income), Schedule

I am filing the 1040, 2555 (Foreign Earned Income), Schedule SE, Schedule C-EZ, and 8965. I think I finally figured out how to include both my salary income and self-employment income using these forms, but I am at a loss for where to state my income from a mutual fund held at a foreign securities bank where I live. I'm a new investor, and I have no idea where to enter this information. Thanks for any advice you may have.

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Megan C

Master's Degree

29,972 satisfied customers
Hey, I'm a US green card holder since 2006. I lived in the

Hey,I'm a US green card holder since 2006. I lived in the states for 10 years. Since July 2013 I left the states with the intention of not coming back.Which steps do I need to take to make this happen officially and not be tax reliable for income earned abroad.Thank you!Hans

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Lev

Retired

Bachelor's Degree Equivalent

24,194 satisfied customers
I have a IRA in the US, don't live there anymore and renounced my citizenship.I plan

I have a IRA in the US, don't live there anymore and renounced my citizenship.I plan to leave that account to my children when I die (they're registered beneficiaries), they are American. What are the tax consequences on the account on the distribution date (upon death) as a non us citizenship? If I dont die and reach the obligatory distribution date, what are the tax consequences then as a foreginer?

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Lev

Retired

Bachelor's Degree Equivalent

24,194 satisfied customers
Background: I am a UK citizen currently resident in New

Background:I am a UK citizen currently resident in New York, USA. I lived my whole life in the UK until the Summer of 2010 when my company moved me to the USA on an L1-A VISA. Having lived here a number of years lawyers have given me the option of extending as L1-A or applying for a Green Card. As a resident in the USA I currently pay income tax on my global income (including any income from UK and USA, netted with double taxation treaty).Concerns:Scenario 1 : After having taken the Green Card, I decide to leave the USA and become resident elsewhere.• Do I still have to file income taxes in USA? If yes, for how many years after I become non-resident? Also, if yes, am I paying taxes on global income or just US derived income?Scenario 2: After having taken the Green Card, I decide to leave the USA and become resident elsewhere. In this process I renounced my Green Card.• Do I still have to file income taxes in USA? If yes, for how many years after I renounce the Green Card? Also, if yes, am I paying taxes on global income or just US derived income?• Is it simple to renounce the Green Card?Scenario 3: After having taken the Green Card, at some point in the future I receive inheritance funds or assets from a foreign estate outside the USA, where the funds or assets are also based outside the USA.• Does a Green Card holder have to pay any USA tax on income inherited from a foreign estate as described? Does a foreign estate have to pay any USA tax on income left to a US individual?• What are the broad terms for inheritance tax rate and thresholds in USA? (I just want broad basics in lamans terms)• Does a Green Card holder have to pay any USA tax on foreign funds or assets gifted from a foreign source? Does a foreign source have to pay any USA tax on foreign funds or assets gifted to a US individual?• Once a Green Card holder is it obligatory to reveal all global assets to the USA authorities? For instance, as a resident alien on L1A I am only obliged to reveal my bank or trading accounts and nothing more.

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Lev

Retired

Bachelor's Degree Equivalent

24,194 satisfied customers
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