*Expatriation Articles – Tax

This Blog is intended to provide general information about tax expatriation legal concepts under U.S. law to help readers better understand often very complex issues within the U.S. international tax field for citizens and lawful permanent residents.  General legal information is not the same as legal advice, that is, the concrete application of law to a specific case with unique and particular facts.

Although the author has taken great care to make sure that the information contained herein is accurate and useful, it is necessary that you consult an experienced attorney to address any particular situation.  Most importantly, if you are contemplating renouncing U.S. citizenship or formally abandoning your LPR status, you must get legal advice.  This is a very important decision with a range of complex legal consequences.

See, Co-author. “Tax Simplification: The Need for Consistent Tax Treatment of All Individuals (Citizens, Lawful Permanent Residents and Non-Citizens Regardless of Immigration Status) Residing Overseas, Including the Repeal of U.S. Citizenship Based Taxation,”  by Patrick W. Martin and Professor Reuven Avi-Yonah, September 2013.

Executive Summary

This paper proposes to eliminate the U.S. citizenship based taxation and create a consistent exit tax system.  The complex web of the current U.S. tax law has made it nearly impossible for all but the most sophisticated U.S. citizens and lawful permanent residents (“LPRs”) residing overseas to file complete and accurate tax returns. The proposal should bring consistency, tax simplicity for taxpayers residing outside the U.S., and do so in part by eliminating the U.S. citizenship based tax system, which is unique in the world, dates to the civil war and is inappropriate for the global world we live in.

Accidental Americans” – Rush to Renounce U.S. Citizenship to Avoid the Ugly U.S. Tax Web” International Tax Journal,CCH Wolters Kluwer, Nov./Dec. 2012, Vol. 38 Issue 6, p45

Table of Contents

* Factors to Consider Prior to Seriously Considering Renouncing U.S. Citizenship

* 2008 Change in Law – “Mark to Market” Income Tax Regime

* Myths – about Renouncing U.S. Citizenship

* Deemed Sale of Property – “Mark to Market”

             *  (1) $663,000 Gain Exclusion and Certain Property Excluded

* Tax on a U.S. Citizen or Resident Who Receives a “Covered Gift” (or Covered Bequest) from a   “Covered Expatriate”

* Conclusion

Oops…Did I “Expatriate” and Never Know It: Lawful Permanent Residents Beware! International Tax Journal, CCH Wolters Kluwer, Jan.-Feb. 2014, Vol. 40 Issue 1, p9

“Expatriation” from the U.S. is often very controversial in the context of U.S. citizens who formally renounce citizenship. There is probably no other U.S. international tax topic for individuals that can strike greater personal emotions than leaving the U.S. To some, it sounds like abandoning the country. Americans do not have a history or tradition of leaving the U.S. to make their careers, families and fortunes abroad, unlike the Dutch, Mexicans, British, Spanish, Indians and many others from countries around the world.

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