Author   /   Phil Hodgen

September 27, 2016 - Phil Hodgen

When Should You Choose to be a Covered Expatriate?

Hi, it’s Phil. Welcome once again to Expatriation Tuesday, the biweekly newsletter that is all about the tax effects of renouncing U.S. citizenship — or giving up a green card.

This time, let’s talk about why you might want to deliberately be a covered expatriate. For some people, it is a tax-saving strategy.

Success = Basis Step-Up Without Tax

If you do this right, you can, by deliberately being a covered expatriate, harvest some capital gain on your real estate — tax-free. Put another way, you can achieve a step-up in basis of your U.S. assets, tax-free.

Who Should Think About This

The conditions for using this strategy are:

  1. You do not have big IRA balances or foreign pensions;
  2. You have U.S.
... continue reading
September 14, 2016 - Phil Hodgen

This Week: Planning for the Exit

Hello again from Phil and welcome to the biweekly Expatriation Only newsletter. Subscribe to our other newsletters at

This Week: Planning For the Exit

This week’s topic was triggered by an email from reader J., received a few weeks ago. She wanted to know how a 20+ year green card holder should plan for giving up permanent resident visa status and leaving the United States.

Here is a high-level view of our S.O.P. for helping people exit the United States. Bear in mind that each situation is slightly different, so just treat this as a high-level map of the terrain.... continue reading

August 24, 2016 - Phil Hodgen

Why Tax Practitioners Cannot Cash Your Refund Check

People who file Form 1040NR (as nonresidents of the United States) will sometimes receive a tax refund.  Sometimes it is large, sometimes it is small.

The IRS, by default, issues a paper check for refunds.

It will shock you to discover that sometimes paper checks take a long time to reach their overseas destination.  Sometimes the paper checks never arrive.  Or sometimes it is a big hassle to deposit the U.S. dollar denominated check into a bank account overseas.  Or it costs a significant amount in bank fees to get this done.

In short, paper checks are an abomination.

It is possible to have refunds deposited directly to your bank account.... continue reading

Nonresidents with US Activities Random
August 19, 2016 - Phil Hodgen

Nonresidents Buying U.S. Hedge Funds: How it Works

Hello again and welcome to the Friday Edition. Every other Friday, you get some international tax . . . ermmm . . . stuff from me, Phil Hodgen. You subscribed, so don’t blame me. 🙂

You can easily unsubscribe if you want — just click the unsubscribe link below.

Or, why don’t you live dangerously and forward this email to a friend?

I welcome new subscribers — and comments/criticisms/questions from readers. (Just hit “reply” and your email will come straight to me.)

Too Long; Didn’t Read

In a hurry?

  • U.S. income tax results are great for most hedge fund investments made by nonresidents.
... continue reading
Friday Edition Nonresidents with US Activities
August 16, 2016 - Phil Hodgen

Installment Agreements and Covered Expatriate Status

Hello again from Phil Hodgen. This is the biweekly Expatriation newsletter, in which we talk about the U.S. tax ramifications of giving up U.S. citizenship or permanent residence status.

If you do not want to get this anymore, just click the “unsubscribe” link at the bottom of the page.

On the other hand, if you would forward this to a friend, I would appreciate it mightily. New subscribers.

By the way. If you have a question for me, just shoot me an email. Hit “reply” and start typing. I am always looking for good newsletter topics.

The Certification Test and Installment Agreements

This newsletter is about the certification test.... continue reading