So Your Candidate Did Not Win the Election and You Want to Expatriate- Here is What You Need to Know About Expatriation, the Exit Tax, and the New Federal Inheritance Tax
By Anthony Diosdi IntroductionSeems like whenever there is an election a number of people threaten to leave the United States and move to another country if their candidate doesn’t win. I’m not sure how many of these individuals make good on their threats. This article is designed to provide an overview of the U.S. tax consequences associated with renouncing one’s U.S. citizenship and discuss potential strategies to mitigate the taxes associated with expatriating. Anyone considering abandoning their U.S. citizenship or ending a long-term U.S. residency must understand that they may be assessed an “expatriation tax.” An “expatriation tax” consists of two components: the “exit tax” and the “inheritance tax.” Both may be triggered upon abandonment of citizenship or abandonment of a green card. We will discuss both these taxes in…