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.
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.
The conditions for using this strategy are:
Hello again from Phil and welcome to the biweekly Expatriation Only newsletter. Subscribe to our other newsletters at hodgen.com/newsletters.
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
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.
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. 🙂
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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.
This newsletter is about the certification test.... continue reading