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Tag Archives: expatriation

  • Insider

    Important Consequences Of Expatriation

    Critical details you need to be aware of
    by Adam Taggart

    Friday, June 7, 2019, 5:15 PM

    2

    Executive Summary

    • The nuts and bolts of expatriation, including the legal process of expatriation
    • The tax consequences of expatriation
    • The immigration consequences of expatriation
    • The pros and cons of U.S. investments once you expatriate
    • The tax consequences should you choose to spend more than a few months each year in the United States after expatriation

    If you have not yet read Part 1: A Primer For Those Considering Expatriation, available free to all readers, please click here to read it first.

    Expatriation: The Basics

    Once you’ve obtained a second passport and qualified for residence in another country, you can begin the legal process of expatriation.

    To do so, you must make an appointment with a U.S. consulate. You generally cannot expatriate within the territorial boundaries of the United States. The consular officer will explain the consequences of expatriation and have you sign some forms.

    Two or more appointments may be necessary to complete the process. At the end of whatever sequence of visits applies at the consulate you choose, you’ll then hand in your U.S. passport. Anywhere from several weeks to several months later, you’ll receive an official document called a “Certificate of Loss of Nationality” (CLN). With the receipt of this document, you will have officially relinquished your U.S. nationality.

    Income Tax Consequences of Expatriation

    Once you give up your U.S. citizenship and passport, you have no further obligation to pay U.S. tax on your worldwide income. However, U.S. law imposes an…

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  • Insider
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    The Benefits & Challenges Of Maintaining A Retreat Property

    Be smart when making the decision to purchase one
    by charleshughsmith

    Friday, April 14, 2017, 10:18 PM

    12

    Executive Summary

    • The matrix of factors to consider in a Plan B residence
    • What to know abot eacf of the five key factors
    • Not all second homes are fully functional
    • The challenges & benefits of maintaining two separate fully functional residences

    If you have not yet read Part 1: Does Your Plan B Include a Second Place to Live if Plan A Doesn’t Work Out? available free to all readers, please click here to read it first.

    In Part 1 we reviewed the three basic categories of Plan B Residences: temporary (to ride out an emergency); semi-permanent (to weather a recession/loss of income) and permanent (replacing Plan A residence with Plan B residence).

    In Part 2, we’ll consider a Matrix of Factors that will help us choose the inevitable trade-offs of costs and benefits, and add a category—permanent maintenance of two fully functional residences.

    The Matrix of Factors

    While there are many factors in any Plan B, I’ve pared the key factors in Plan B residences down to five: cost, control, security, depth of resources and functions enabled. Each is on a sliding scale from low to high. There are costs and benefits to each being low, medium or high.

     

    Let’s go over each factor.

    Cost:

    While cost measured by price is self-explanatory, this also includes opportunity costs (what else could have been accomplished with the money?), time (the hassle factor of how long it will take to get something done) and labor—how much labor must be invested to accomplish a goal.

    There is even a stress cost: how much will this goal/project add to my stress load? Even if the money needed is on hand, the overall cost can be high in terms of time, hassle, stress and opportunity cost.

    Control:

    By this I mean ownership (of the land, the house, etc.), contractual control (of jointly owned assets, of any hired labor, etc.) and functional control, i.e. residency.  As many have discovered to their regret, it’s possible to have legal ownership/control but end up with effectively zero functional control, as your house might be occupied by squatters or family members who morphed from allies to enemies.

    Control is important because…

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  • Blog

    A Primer for Those Considering Expatriation

    by Mark Nestmann

    Thursday, March 22, 2012, 1:32 PM

    0

    A growing number of Americans are frustrated with the way in which their economy has been managed and are becoming increasingly concerned about future measures the governement may take to keep its coffers full.

    A question that is arising with increasing frequency is: does expatraition offer a viable protection to those concerned about a more financially-intrusive US system?

    The answer is ‘yes’, it does offer a completely legal solution for ending your obligation to pay US income, captial gains, and gift taxes on your worldwide income. But it is certainly not for everyone and should only be pursued after lengthy and diligent consideration.

    And before you begin dreaming of a tax-free future, you should realize that the United States imposes taxes on a broader basis than any other country. The United States is one of two countries, and is the only major country, that imposes significant income, capital gains, gift, and estate taxes on its non-resident citizens.

    In virtually all other countries, individuals end their liability to pay income tax after a sustained period of non-residence, generally one year or longer. But to legally and permanently end U.S. tax liability on their worldwide income, U.S. citizens must also give up their U.S. citizenship and passport. This process is called “expatriation.”

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  • Blog
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    A Primer for Those Considering Expatriation

    by Mark Nestmann

    Thursday, March 22, 2012, 1:32 PM

    27

     

    A growing number of Americans are frustrated with the way in which their economy has been managed and are becoming increasingly concerned about future measures the governement may take to keep its coffers full.

    A question that is arising with increasing frequency is: does expatraition offer a viable protection to those concerned about a more financially-intrusive US system?

    The answer is 'yes', it does offer a completely legal solution for ending your obligation to pay US income, captial gains, and gift taxes on your worldwide income. But it is certainly not for everyone and should only be pursued after lengthy and diligent consideration.

    And before you begin dreaming of a tax-free future, you should realize that the United States imposes taxes on a broader basis than any other country. The United States is one of two countries, and is the only major country, that imposes significant income, capital gains, gift, and estate taxes on its non-resident citizens.

    In virtually all other countries, individuals end their liability to pay income tax after a sustained period of non-residence, generally one year or longer. But to legally and permanently end U.S. tax liability on their worldwide income, U.S. citizens must also give up their U.S. citizenship and passport. This process is called "expatriation."

     

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