A Few Great Reasons to Expatriate Today...
We've got a few reasons why now might be the best time to expatriate, if you're interested,
"For Americans, "expatriation" means giving up U.S. residence, citizenship and passport," we're told.
"Why would anyone take such a radical step?"
"First, expatriation is the only way a U.S. citizen or long-term resident can permanently sever the obligation to pay tax on worldwide income. That makes investing and doing business offshore far easier than if you remain a U.S. taxpayer."
Second, once you've expatriated, you're no longer subject to the dictates of U.S. government should it declare an "economic emergency" to deal with the worst economic crisis in 80 years. That means you'll avoid possible foreign exchange controls, forced repatriation of offshore assets, etc."
"And, speaking of the global collapse in commodities and stocks, the timing has never been more favorable for any U.S. person considering expatriation. That's because the 2008 law that imposes an "exit tax" on former U.S. citizens (or long-term U.S. residents) affects only unrealized gains that exceed US$600,000. And, a lot more prospective expatriates have unrealized gains under that amount than, say, one year ago."
"In addition, the long-term capital gains rate—15%—is the lowest it's been in decades. Combined with today's depressed asset values, the tax cost of liquidating assets to get below the US$600,000 threshold may never be lower. That's particularly true if the Obama "bailout" results not only in a recovery in asset values, but also in a tax hike for high-net-worth Americans to pay for the plan."
"Before you expatriate, you also must acquire a passport from another country. You also need to decide where you want to live outside the United States and make preparations to relocate there. Finally, you must plan to minimize the tax consequences of expatriation."
We've got a few reasons why now might be the best time to expatriate, if you're interested,
"For Americans, "expatriation" means giving up U.S. residence, citizenship and passport," we're told.
"Why would anyone take such a radical step?"
"First, expatriation is the only way a U.S. citizen or long-term resident can permanently sever the obligation to pay tax on worldwide income. That makes investing and doing business offshore far easier than if you remain a U.S. taxpayer."
Second, once you've expatriated, you're no longer subject to the dictates of U.S. government should it declare an "economic emergency" to deal with the worst economic crisis in 80 years. That means you'll avoid possible foreign exchange controls, forced repatriation of offshore assets, etc."
"And, speaking of the global collapse in commodities and stocks, the timing has never been more favorable for any U.S. person considering expatriation. That's because the 2008 law that imposes an "exit tax" on former U.S. citizens (or long-term U.S. residents) affects only unrealized gains that exceed US$600,000. And, a lot more prospective expatriates have unrealized gains under that amount than, say, one year ago."
"In addition, the long-term capital gains rate—15%—is the lowest it's been in decades. Combined with today's depressed asset values, the tax cost of liquidating assets to get below the US$600,000 threshold may never be lower. That's particularly true if the Obama "bailout" results not only in a recovery in asset values, but also in a tax hike for high-net-worth Americans to pay for the plan."
"Before you expatriate, you also must acquire a passport from another country. You also need to decide where you want to live outside the United States and make preparations to relocate there. Finally, you must plan to minimize the tax consequences of expatriation."
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