Expat Tax Strategies

[ColinJess]

I used to run a tax firm, retired for the sailing life. I've been shocked to see how many people don't take advantage of the Expat tax incentives alleviating over $112,000 of income with a allotments for housing etc.

People can find more information for free on the IRS site, or post something here, I love helping people, now I get to do it for fun

https://www.irs.gov/individuals/inte...come-exclusion

Does anyone else use the exclusion? Why or why not?

[nuku34]

Here's my ex-pat tax strategy:

Get residency/citizenship in a nice small non-3rd world country (I did in NZ) then give up your US citizenship. Tax problems are permanently finished.

[GordMay]

Greetings and welcome aboard the CF, ColinJess.

[redneckrob]

Originally Posted by nuku34

Here's my ex-pat tax strategy:

Get residency/citizenship in a nice small non-3rd world country (I did in NZ) then give up your US citizenship. Tax problems are permanently finished.

If you have no ties to the U.S. that's a sound strategy. If you have a lifetime worth of family and friends still in the U.S. and think there’s a chance you may need to unexpectedly stay in the U.S. for more than 6 months to help them out at some point during the rest of your life, it's not really a viable option.

[shimari]

Originally Posted by redneckrob

If you have no ties to the U.S. that's a sound strategy. If you have a lifetime worth of family and friends still in the U.S. and think there’s a chance you may need to unexpectedly stay in the U.S. for more than 6 months to help them out at some point during the rest of your life, it's not really a viable option.

Not to mention if you have unrealized capital gains. Those are considered sold when you give up your citizenship and taxed as you go out the door.

[nuku34]

Re renouncing US citizenship: I didn't have any ties to the USA after 35 years away cruising, parents dead, only a sister there, and I would never go back to that failed state.

Yes, I did have to list all my assets (there weren't many left in the USA by then), the USA pretended I died on the day I took the oath of renunciation, and calculate the 20% capital gains tax due. It was below the rather generous (for "normal" people, not the filthy rich) exemption (around US$800,000) so I didn't owe them anything.
This is not an option for most people, I got NZ residency/citizenship way back in 1999 before the barn door got shut. It worked for me, just saying....