Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Expat with $2MM considered wealthy by Congress
Old 07-14-2007, 05:56 PM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Expat with $2MM considered wealthy by Congress

See the article from the Journal of Accountancy.

New Rules for Expats
__________________

__________________
chinaco is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-14-2007, 06:26 PM   #2
Recycles dryer sheets
 
Join Date: Jun 2007
Posts: 359
Its too bad they don't index the $2mm amount to keep pace with the estate tax threshold ... or wait, perhaps they realized that EVERYONE might just die or emigrate in 2010.
__________________

__________________
FinanceGeek is offline   Reply With Quote
Old 07-15-2007, 02:27 AM   #3
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,152
I read through a lot of this and even some supporting links. It is actually a good reference. But after reading all of this I still can't tell if an expatriating person with net worth of less than $2M would owe taxes on deferred capital gains . . . and how would a traditional IRA be handled . . . I still have no idea -- taxes due on exit with all the income coming that year?

Kramer
__________________
kramer is offline   Reply With Quote
Old 07-15-2007, 03:50 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Well, if they told all of the secrets, you wouldn't have need for an accountant!
__________________
chinaco is offline   Reply With Quote
Old 07-15-2007, 07:46 AM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,291
Quote:
Originally Posted by kramer View Post
I read through a lot of this and even some supporting links. It is actually a good reference. But after reading all of this I still can't tell if an expatriating person with net worth of less than $2M would owe taxes on deferred capital gains . . . and how would a traditional IRA be handled . . . I still have no idea -- taxes due on exit with all the income coming that year?

Kramer

Why You leaving

I did not read that much... but I would bet that the for 88 whatever is the place to look... and from what I read if you were not 'rich' then off you go.. have fun..

It is the rich (but should be higher than $2 mill) that they want to get their hands on.. a few years back some of the mega rich were just giving up their US citizenship and moving to an island that did not tax them.... and they did not stay in the US that long anyhow as they traveled the world... so it was no big deal to them and it saved them millions in taxes...


Remember... all US income is subject to US tax no matter who you are or where you are... it is only the 'world wide' income that is being saved...
__________________
Texas Proud is offline   Reply With Quote
Old 07-15-2007, 09:54 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Ed_The_Gypsy's Avatar
 
Join Date: Dec 2004
Location: the City of Subdued Excitement
Posts: 5,293
Whoa.

I think this link only applies to Americans who renounce their citizenship. (Or did I miss something?) Those of us, like Kramer and me, who are only interested in living abroad have no special worries. We just have to file every year.

At 3.5% SWR from a good portfolio, it is very possible that many here will be worth a lot more than $2MM somewhere along the line, so it is an interesting subject.

There may be some complications if an individual wants to take a large chunk of money out of the country all at once, but it seems to depend on how one does it. Transferring big bux through your bank to buy a house in Panama doesn't seem to be a problem. Bags of gold under your coat will get you into trouble. I remember the story of a college prof who tried that and got into very hot water. There are better ways.
__________________
my bumpersticker:
"I am not in a hurry.
I am retired.
And I don't care how big your truck is."
Ed_The_Gypsy is offline   Reply With Quote
Old 07-15-2007, 10:37 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 1,152
Quote:
Originally Posted by Texas Proud View Post
Why You leaving

I did not read that much... but I would bet that the for 88 whatever is the place to look... and from what I read if you were not 'rich' then off you go.. have fun..

It is the rich (but should be higher than $2 mill) that they want to get their hands on.. a few years back some of the mega rich were just giving up their US citizenship and moving to an island that did not tax them.... and they did not stay in the US that long anyhow as they traveled the world... so it was no big deal to them and it saved them millions in taxes...


Remember... all US income is subject to US tax no matter who you are or where you are... it is only the 'world wide' income that is being saved...
Texas Proud, No I am not seriously considering leaving. I am an American, and I love my country and what it stands for both historically and today. However, I always like to know all of my options I have paid a boatload of taxes over the years as a single high earner with no tax deductions (besides state tax!). Since I have considered retiring elsewhere, this would only even be considered if I were very happily situated in some second world paradise.

For example, if socialized medicine were to come to the US for all ages, and they continued the worldwide tax regime, this could be very bad for American expats (higher taxes but absolutely no benefits since you are paying for your own care overseas). Other countries basically allow you to opt out of nationalized medical systems by establishing non-residency without expatriation.

That is a good point about US source income. I would probably be subject to 15% withholding on dividends and interest. Unless many of the holdings were moved at the time of expatriation (and assuming no tax "event", i.e., don't have to pay deferred cap gains taxes -- which is doubtful).

If memory serves, only about 2000 people per year expatriate from the US. I am guessing the number in the other direction becoming citizens is about 1000 times higher.

Kramer
__________________
kramer is offline   Reply With Quote
Old 07-16-2007, 03:37 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
The countries that are close to us are mainly in Western Europe and their taxes are much higher!

Oh, I almost forgot about the Canucks... But then again, that is the 51st state.

Other places are fun and interesting places to visit! But there is nutin' like the good old USA!
__________________

__________________
chinaco is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Congress and the Fed Erode Your Dollars Mountain_Mike Other topics 5 05-26-2005 11:53 PM

 

 
All times are GMT -6. The time now is 09:12 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.