ExPats rejoice!

[pb4uski]

This site constantly confuses me!

On one hand there's accusations of 'cheating' on FATCA and those who 'manipulate asssets' to get Medicare-paid nursing home care, yet there are entire threads discussing manipulating income to get Obamacare subsidies with nary a peep.

Jus' sayin'...

I don't see a conflict. "Limboing lower" with taxable income to get a subsidy is perfectly legal, just like all other tax optimization strategies. Cheating on taxes by housing unreported money overseas and fraudulently avoiding the asset test for Medicare is breaking the law. Understand the difference?

FWIW, I think the whole idea of forcing Merkins to continue paying taxes when they do not reside in the US is crazy.

With all due respect, actually I don't see the difference. What I do see is the [-]limboing[/-] contortions in your argument.

It's always dangerous to infer bad motives because someone makes different choices. Although I have certainly been guilty of that, I try very hard to start with the assumption that others have good motives, until proven otherwise. It just seems to make people nicer.

There is a clear difference - and it is very simple.

It is unlawful to evade US income taxes by sheltering money offshore. If you shelter money offshore and earn income you are required by law to report it and pay tax on that income irrespective of the likelihood of getting caught.

It is unlawful to transfer assets within the lookback period and not report the transfer in order to fraudulently induce Medicare to pay for your nursing home care.

It is not unlawful to structure your income to optimize the Obamacare health insurance subsidies.

It is just like taxes - it is well established that you have the legal right to structure your financial affairs in a way that minimizes taxes (as long as you operate within the law).

 

[brewer12345]

With all due respect, actually I don't see the difference. What I do see is the [-]limboing[/-] contortions in your argument.

It's always dangerous to infer bad motives because someone makes different choices. Although I have certainly been guilty of that, I try very hard to start with the assumption that others have good motives, until proven otherwise. It just seems to make people nicer.

You don't understand the difference between compling with the law and breaking it? You must be very popular with the local constabulary.

 

[Ed_The_Gypsy]

But with more and more people in the US viewing "people doing business" as baaad people in a net-zero game, it's an uphill climb.

The US is becoming more and more like a banana republic, IMHO. However, I do think our people have better sense than our government, so there is hope that we will not turn into Argentina or Venezuela or Brazil...or England/Germany/Spain/Holland.... (Maybe it isn't all that bad after all??)

 

[MichaelB]

The US is becoming more and more like a banana republic, IMHO. However, I do think our people have better sense than our government, so there is hope that we will not turn into Argentina or Venezuela or Brazil...or England/Germany/Spain/Holland.... (Maybe it isn't all that bad after all??)

Just as long as we don't turn into ... dare I say it ... Canada. 'Cause then we all would have to eat those nasty fries with gravy and cheese curd.

 

[marko]

It is unlawful to transfer assets within the lookback period and not report the transfer in order to fraudulently induce Medicare to pay for your nursing home care.

But is it NOT unlawful to transfer assets ahead of the lookback period. That is what I have been talking about; trusts, gifting etc are all part of "Elder Law Strategies".

If the only difference is timing, I don't see the real difference in the end result...Medicare pays. Yet the latter is advertised non-stop on TV, radio and billboards by reputable agencies, banks and financial advisors. (at least in my state)

 

[pb4uski]

Just as long as we don't turn into ... dare I say it ... Canada. 'Cause then we all would have to eat those nasty fries with gravy and cheese curd.

and queue up for health care....

 

[nun]

and queue up for health care....

.....or die because of lack of it......

bring on Porky

But the original observation that FATCA is being held up actually has no impact on US citizens if 8938 etc are still required and of course the IRS code is still hampered by taxation depending on citizenship.

 

[Huston55]

It is unlawful to transfer assets within the lookback period and not report the transfer in order to fraudulently induce Medicare to pay for your nursing home care.
QUOTE]

But is it NOT unlawful to transfer assets ahead of the lookback period. That is what I have been talking about; trusts, gifting etc are all part of "Elder Law Strategies".

If the only difference is timing, I don't see the real difference in the end result...Medicare pays. Yet the latter is advertised non-stop on TV, radio and billboards by reputable agencies, banks and financial advisors. (at least in my state)

Reminds me of that old quote (Churchill I think)... He's speaking to an attractive but snooty woman at a party and asks if they could have a relationship if he had a million Pounds; she indicates it's a possibility she'd have a relationship with a man of such means. He then asked if she'd sleep with him for five quid. She abruptly says, "Absolutely not! What kind of woman do you think I am?!" He says, "Well, Madam we've already established that. Now we're just haggling over price."

 

[Alan]

Thanks folks, we think this thread has just about run its course.

Porky Pig Cartoon Ending "That's All Folks!" - YouTube