Date: October 29, 2012
Time: 12:30 PM
Where: Beckham’s Grill, 77 West Walnut Avenue, Pasadena, California
Who: Phil Hodgen
Event: Pasadena Discussion Group of the California Society of Certified Public Accountants
Exit tax is the U.S. tax imposed when you relinquish either your citizenship or long-term permanent resident visa. U.S. citizens and permanent residents pay income tax on their worldwide income. Every year, more and more people are relinquishing their U.S. citizenship or giving up their green card (permanent resident) visa status. This means they are leaving the U.S. tax net. As they leave, the United States seeks its last chance to impose tax. If you are rich enough or your tax paperwork is not in order, the IRS pretends that you sold everything you own on the day before you relinquished your citizenship. After applying an exemption amount ($651,000 in 2012), you pay tax on the “pretend” sale. How can you win this game? Phil will explain all this and more.