The ABC of Expatriation in these chaotic instances Holland & Knight LLP

Highlights

• Expatriation increased significantly in 2020. The latest report from the U.S. Treasury Department shows that the first three quarters of 2020 saw a record 6,047 people. In addition, 834,000 "green card" holders became US citizens in fiscal year 2019, which is an 11 year high.
• Why do so many people emigrate? Maybe it's because we live in chaotic times, ranging from the pandemic to the controversial presidential elections and transitions, among other things. In addition, U.S. taxpayers are increasingly considering moving part of their financial portfolio offshore for diversification and to facilitate global trade.
• The surge in expatriation has also caught the attention of the Inspector General of Tax Administration (TIGTA), who in a recent report stressed that the Internal Revenue Service (IRS) should have controls in place to better enforce U.S. tax and reporting regulations in relation to expatriates.
• Given the significant increase in expatriation activity, this Holland & Knight article discusses in Q&A format the essential elements of expatriation from an immigration and tax perspective.

As discussed in Holland & Knight's previous warning "TIGTA mandates IRS to step up enforcement of non-compliant expatriates" (November 23, 2020), expatriation increased significantly in 2020. The latest US Treasury Department report shows a record 6,047 expatriates have been expelled, which is comparable to the previous annual record in 2016 when 5,411 people emigrated. Interestingly, 834,000 green card holders became US citizens in fiscal 2019, reflecting an 11-year high for new citizenship oaths.

The increase in expatriation caught the attention of the Inspector General of Tax Administration (TIGTA), who in a report released Sept. 28, 2020, stressed that the Internal Revenue Service (IRS) should have controls to better enforce U.S. tax and reporting regulations for expatriates.

Why do so many people emigrate? Maybe it's because we live in chaotic times: the pandemic; Economic, social, health and climate problems; the oppressive US tax and reporting systems around the world and the impact of US tax regulations on "Accidental Americans"; Foreign Account Tax Compliance Act (FATCA) and most recently the controversial presidential elections and transitions.1 In addition, US taxpayers are increasingly considering moving part of their financial portfolios offshore to diversify and facilitate global trade.

Due to the increase in expatriations and the TIGTA report admonishing the IRS to better control and enforce expatriations, this article reviews the essential elements of expatriation from an immigration and tax perspective in Q&A format.

I. US Immigration Law Aspects upon Termination of US Citizenship

Q1. How do I end US citizenship?

Reply.

• U.S. citizenship can be terminated through a variety of methods, including surrender and waiver. This article only looks at waiver of US citizenship abroad. This is the clearest way that a person can express an intention to give up U.S. citizenship.
• The method of renunciation requires voluntary choice and an understanding of the consequences.
• Under this method, a U.S. citizen must appear in person before a U.S. consular or diplomatic officer overseas and sign an oath of renunciation of U.S. citizenship.
• The waiver must be made in person and cannot be made by post, electronically, or through agents.
• A Certificate of Loss of Nationality (CLN) documents the loss of US citizenship. A CLN is completed by a consular officer and sent to the State Department for review and approval. US citizenship is only terminated with the approval of a CLN, which is retroactive to the date of the renunciation oath.
• Comment. Given the pandemic, it may not be possible to quickly or easily schedule an appointment at an embassy or consulate due to delays in scheduling appointments, some embassies or consulates being closed, or some embassies or consulates not conducting interviews during the pandemic. As mentioned above, the waiver must be made in person.

Q2. What are the consequences of terminating US citizenship?

Reply.

• If the former citizen does not have valid foreign citizenship or citizenship, he can become stateless and therefore not receive state protection. The lack of a second foreign nationality or citizenship is also likely to create difficulties in travel as the individual does not have a passport from any country and otherwise creates serious difficulties.
  • So, before giving up, ensure that the U.S. citizen has lawfully obtained and retains another citizenship or citizenship. This can be done 1) by birth outside of the US, 2) by parents or grandparents (at birth or later), 3) by naturalization, or 4) by investment.
    • "Golden Visa" refers to country immigration programs that enable wealthy individuals (HNW) to obtain residency or citizenship in another country simply by buying a home in the country or making a significant investment or donation. If the immigrant is pursuing a gold visa, he or she needs to be careful to get what he or she was expecting.
    • The Organization for Economic Co-operation and Development (OECD), after analyzing more than 100 citizenships or residences through investment programs, warned that a number of these systems pose a high risk to the integrity of the Common Reporting Standard and to tax abuse.

• Other consequences.
  • The termination of citizenship is irrevocable after approval, unless coercion or incomprehension can be proven.
  • Former US citizens have no right to visit, work, or live in the US, and have no advantage over other non-citizens when applying to do so.
  • Former US citizens must apply for a visa to enter the US or demonstrate that they are eligible under the terms of the Visa Waiver Program. If a former citizen is unable to qualify for a visa, they can be permanently banned from entering the United States.
  • If the Department of Homeland Security determines that the waiver is motivated for tax avoidance reasons, the former citizen could be banned from entering the United States by applying the so-called Reed Amendment, passed in 1996.
    • It should be noted that poor drafting and restrictions on the IRS exchange of tax information have stalled implementation as no regulations, guidelines or procedures have been put in place to implement the law.
    • Nevertheless, some former citizens at the border were initially refused entry, but this refusal was overcome. others were asked about their reasons for expatriation.
    • Note that Sens. Chuck Schumer (DN.Y.), Jack Reed (DR.I.) and Bob Casey (D-Pa.) Introduced changes to the immigration reform bill in June 2013 to prevent "covered expatriates" from entering the country to refuse emigrated since 2008; These changes never went into effect.

• • Effects on Children
    • A child who became a US citizen In front A parent's expatriation remains a U.S. citizen unless the child was born abroad and the parent's expatriation occurred retrospectively on a date prior to the child's birth.
    • A foreign-born child of a former U.S. citizen will not be granted U.S. citizenship from the immigrant parent.

• • Expatriate names are published in the Federal Register.
  • Expatriates cannot buy or own firearms in the United States.
  • Remarks.
    • Before expatriation, it is important that the emigrating US citizen consider options for returning to the US in the future, such as: B. for medical care, for career opportunities, for the care of aging parents, for staying near adult children in old age or for other reasons.
    • Make sure that the emigration of US citizens from the USA cannot be "excluded". These include criminal convictions, previous immigration violations, terrorism, and medical grounds for exclusion (including arrest for alcohol driving even if not convicted).

II. US Tax Law Aspects to End US Citizenship

Q1. Background: Who is affected by US expatriation law?

Reply.

• Foreign tax provisions have been included in the U.S. Internal Revenue Code (Code) since 1966.
• Until 1996, international tax regulations only applied to US citizens who gave up their US citizenship.
• Starting in 1996, the anti-expatriation regulations in the USA were expanded and apply not only to US citizens, but also to certain "green card" holders who are classified as "long-term residents", provided these people are insured expatriates. See Section III below for a discussion of the specific expatriation rules for Green Card holders and planning considerations.
• Please note that this article only covers the provisions of the Code of Income, Estate and Gift Tax Expatriation that apply to persons who are insured expatriates and expatriates on or after June 17, 2008, and not previous expatriation provisions .

Q2. What does the term "expatriate" mean?

Reply.

• A U.S. citizen giving up citizenship. Also included in this term, but not discussed here, is citizenship waiver and US citizenship loss if a US court cancels a naturalized citizen's certificate of naturalization.
• A "long-term" resident of the US who is no longer a legal resident of the US; see Section III, Q2 below.

Q3. What are the most important sections of the code and how has expatriation been dealt with so far?

Reply.

• Section 877A. The so-called "Exit" tax, which deals with the income tax consequences for "Covered Expatriates", definitions and operating rules.
• Section 2801. Includes the consequences for gift and estate taxes that apply to an "insured expatriate". The proposed ordinances were enacted in 2015, more than seven years after Section 2801 came into force.
• Section 6039G. Provides the requirements for compliance with IRS Form 8854.
• Note 2009-85. Instructions for expatriates per Section 877A.

Q4. Who is an insured expatriate?

Reply.

• An "insured expatriate," as defined in Q2 of this section, is someone who passes one of the following three tests:
  • The tax liability test. An expatriate with an average annual net income tax liability for the previous five tax years ending before the expatriation date and exceeding a certain inflation-adjusted amount. For 2020 the amount is $ 171,000.
  • The net worth test. An expatriate with a net worth of $ 2 million or more but who was not adjusted for inflation as of the expatriation date.
  • The certification test. An expatriate who, under the penalty of perjury, fails to certify compliance with all U.S. federal tax obligations for the five tax years prior to the tax year, including the expatriation date, including, but not limited to, obligations to file income tax, labor tax, gift tax and information returns, if applicable, and Payment of all relevant tax liabilities, interest and penalties. This attestation is issued on IRS Form 8854 and must be submitted by the taxpayer's income tax return due date for the tax year that includes the day prior to expatriation.

Remarks.

• • • A person who otherwise fails the tax liability or wealth test is an "insured expatriate" if the person fails the certification test.
    • Note that the certification of US federal income tax obligations as part of the certification test is the same as in the US. Title 26 (Internal Revenue Code).
    • Compliance with the report on foreign bank and financial accounts, so-called "FBAR" obligations, results from the USA. Title 31 (Money and Finance) and is therefore not part of the United States Laws above. Title 26 Certification Test.
    • If a U.S. citizen or resident alien fails to meet their other U.S. federal income tax or FBAR filing requirements, there are various IRS programs in place to address that non-compliance.
• Exceptions:
  • The expatriate became a US citizen at birth and a citizen of another country and remains a citizen of another country at the time of expatriation and will be taxed as a resident of that other country. He has not been resident in the United States for more than 10 tax years during the 15 tax year period ending with the tax year in which the expatriation date falls;
    • To be eligible for this exemption for stays abroad, the person must be resident in the country in which the person was born (and not in another foreign country).

or

• • The expatriate will relinquish US citizenship before age 18 and have not resided in the US for more than 10 tax years since the waiver date.
• Comment. There are no exceptions to insured expat status for long-term residents.

Q5. What is the expatriation date?

Reply.

• It is the date that an individual ceases to be a US citizen or, in the case of a long-term US resident, the date that the individual ceases to have legal permanent residence in the US.
  • For a U.S. citizen renouncing U.S. citizenship, the expatriation date is the date on which the person signs the renunciation oath in front of a U.S. diplomatic or consular officer, if the waiver is subsequently approved by issuing a CLN.
  • For a long-term resident, the expatriation date is the date of cessation of legal permanent residence. It can happen:
    • through an administrative revocation,
    • a court decision on the task or
    • Start as a resident abroad under the terms of a bilateral U.S. income tax treaty, provided the individual waives contractual benefits and the IRS notifies such treatment on IRS Forms 8833 and 8854.

Q6. Income Tax Expatriation Commission: What is the so-called "Mark-to-Market" / Exit Tax?2

Reply.

• General rule. Section 877A generally imposes a "mark-to-market" income tax system on Covered Expatriates resulting in sales of worldwide assets (excluding three categories of assets) the day before the expatriation date. Profits are taxed at ordinary ordinary or capital gains rates on profits greater than $ 600,000 (indexed for inflation; $ 737,000 for 2020).
  • Operating rules:
    • Any gain on the assumed sale will be taken into account for the tax year of the assumed sale regardless of any other provision of the Code.
    • Any loss from the presumed sale is taken into account for the tax year, unless otherwise specified in the Code (with the exception of the rules for laundry sales in the Code, Section 1091).
    • All non-recognized deferral and tax extensions will be terminated from the day before expatriation.
    • The determination of ownership and the valuation of assets are based on principles of inheritance tax.
    • An expatriate may choose to defer asset-to-asset tax when "reasonable safety" is in place (with a 30-day recovery period). The postponement continues until the asset is sold / transferred or the taxpayer dies if it is earlier. The taxpayer must agree to waive tax breaks. Deferred taxes accrue interest at the underpayment rate of the Code.
    • Long term residents have a base increase (but not a base increase) to calculate profit under the mark-to-market tax system. Note that the resident may choose not to apply this base increase.

Q7. What assets are exempt from the sale rule and how are they taxed?

Reply.

• Deferred Compensation Items. "Deferred Compensation" broadly includes all types of employer retirement plans, including qualified, unqualified, foreign plans and the right to future transfers of title to which an individual is entitled in connection with the provision of services to the extent that amounts have been paid so far were not included in taxable income. Not included: Deferred compensation for non-US services performed when the taxpayer was non-US resident. Pension plan payments are excluded from early distribution penalties.
  • Taxation.
    • "Eligible Deferred Pay" (i.e., US Payer): Subject to a 30 percent withholding tax on the chargeable portion as provided in Section 871.
    • "Ineligible Deferred Pay" (i.e., Non-U.S. Payer): Present value and inclusive of income for the day prior to the expatriation date at marginal tax rates (unless a non-U.S. Payer elects to be treated as a U.S. Payer to become).

• Disclosed deferred tax accounts. This includes the following types of accounts:
  • • Individual retirement plan (including rollover IRAs).
    • Qualified teaching program.
    • Coverdell Education Savings Account.
    • Health savings account.
    • Archer Medical Savings Accounts (MSAs).
  • Taxation. The day before the foreign date.

• Non-Grantor Trusts. Any trust whose taxpayer is not the founder immediately prior to the foreign date. Includes trusts that are grantor trusts to others, code Section 678.
  • Taxation.
    • Distribution after expatriation from a non-grantor trust in which the taxpayer was classified as beneficial before expatriation is subject to a withholding tax of 30 percent on the "taxable part" in accordance with Section 871; The taxation of distributions is unlimited in time.
    • Special rules.
      • Non-Grantor Trust recognizes profits from the distribution of valued property.
      • The taxpayer is deemed to forego contractual benefits unless they are given a specific IRS scheme that includes an identifiable value of economic income in income the day before the offshore date.
      • If the non-grantor trust becomes a grantor trust after expatriation, this is considered a taxable distribution.
      • Potential problems with foreign tax credits under Section 906.

Q8. What are the Section 877A compliance requirements?3

Reply.

• IRS Form 8854 (First and annual expatriation statement). The form must be submitted in good time with the final income tax return. If this is not the case, the former citizen will be treated as an insured expatriate. The form must also be submitted for eligible deferred compensation items, economic interests in non-grantor trusts, and taxpayers who have deferred payment of taxes.

On September 6, 2019, the IRS announced a new process, titled "Relief Procedure for Certain Former Citizens," to allow certain non-compliant US citizens who give up their US citizenship to become US tax compliant. The process is narrowly applicable to non-intentional ex-citizens who owe $ 25,000 or less in after-tax and have net worth less than $ 2 million

• IRS Form W-8CE (Notice of expatriation and waiver of contractual services) must be submitted in connection with items that are excluded from the market value rule before the first time of distribution after expatriation or 30 days after the foreign date.
• Income tax refund.
  • Year of expatriation. An insured expatriate must file a dual status return if they have been a US citizen or long-term resident for only part of the tax year that includes the day prior to the expatriation date.
    • For a dual status return, the insured expatriate must submit an IRS Form 1040NR (US Foreign Income Tax Return) with an IRS Form 1040 (US Individual Income Tax Return) as the schedule.
    • If the insured expatriate's expatriation date is January 1st, the filer does not need to submit a dual status report.
  • In the coming years. If Covered Expatriate has no US source income or is fully withheld at source, there is no need to submit IRS Form 1040NR for that particular year.

Q9. Foreign and Gift Tax Expatriation Regulations: How Do They Apply?5

Reply.

• General rule. Pursuant to Section 2801, US citizens or residents who receive a "covered gift or discount" from an insured expatriate will be taxed at the highest applicable gift or estate rate (40 percent in 2020).
  • "Gift or bequest in cover." Property acquired, directly or indirectly, by gift or as a result of the death of a person who was an insured expatriate at the time of acquisition or death.
  • A gift or legacy comprises a distribution to a US person out of the income or corpus of a foreign trust that is attributable to a "gift or legacy" issued by a foreign trust.
  • A "gift or legacy" to a domestic trust (a US citizen) is a gift to a US person and is taxable on the trust. Note that there is an option for a foreign trust to be taxed as a domestic trust.
  • The question arises as to how the term "US resident" is defined – whether this term is used in the context of the residence concept of Subtitle B (estate and gift taxes) or the income tax rules (tests for "substantial presence" and "green card") is defined.
  • No time limit on collecting gift or estate taxes to U.S. recipients under Section 2801.
• Exceptions.
  • Annual Gift Tax Exclusion Amount ($ 15,000) per person.
  • Gifts or bequests eligible for marital or charitable deductions.
  • A "covered gift" when reported on a timely gift tax return.
  • Properties that are included in the gross estate of a covered expatriate and that were reported in a federal estate tax return submitted in good time.
  • US tax on a "gift or legacy" is reduced by any foreign gift or estate tax paid on such gift or legacy.
• Effective Date.
  • Communication 2009-85 stipulated that reporting and tax obligations for "covered gifts or covered discounts" would be postponed until guidelines were issued.
  • Proposed Regulations under Section 2801 were issued by the IRS on September 9, 2015 and provided that they apply on or after the date of final publication.
• Comment.
  • US recipients have a responsibility to determine whether any gift or bequest received is a "Gift or Legacy" and are responsible for paying Section 2801 tax.
    • A U.S. taxpayer may require the IRS to disclose a donor's return or a deceased expatriate to assist the U.S. individual in determining that person's tax liability. If a living expatriate donor does not authorize the IRS to release their relevant return to a US citizen or resident, a rebuttable presumption arises that the expatriate donor is a covered expatriate and that any gift is a "covered gift".
  • The tax according to § 2801 is not reduced by the uniform credit for the gift tax or the uniform credit for the inheritance tax.
  • There is no correlation between the amount of property subject to "exit tax" and whether the "gift or legacy" is US or foreign situs property.
  • Does Section 2801 Override Bilateral Estate or Gift Tax Agreements? The proposed regulations do not explicitly state that treaties will not be repealed and legislative history is silent on this point.

III. Applying US Tax Expatriation Regulations to "Green Card" Holders

Q1. Who is the holder of a "Green Card"?

Reply.

• The following people are considered to be holders of a "Green Card":
  • An alien who has been granted permission to live and work permanently in the United States. A permanent residence card ("green card") is issued by the US Citizenship and Immigration Service upon approval and is later mailed to the alien's US address.
  • After entering the United States on an immigrant visa, the foreigner is granted permanent or conditional residence status.
  • An individual in possession of a permanent residency card (I-551) that proves lawful permanent residence in the United States. The card also serves as valid identification and proof that the alien is authorized to live and work in the United States.
• Comment. Green card holders must be aware that accepting a contract breaking position as a non-resident alien for US income tax purposes may adversely affect their immigration status and cause unintended expatriation.

Q2. Who is a long term resident?

Reply.

• Any person (other than a US citizen) who has been legally resident in the United States for at least eight of the last 15 tax years ending with the year in which the "long-term" is (holder of a "green card") Resident Abroad "(ie no longer treated as a legal permanent resident of the United States).

In contrast to US citizens, US "Green Card" holders can involuntarily emigrate by having their "Green Card" revoked for cancellation, criminal conviction or other deportable crimes.

• • Revocation to the task. A holder of a "green card" who is resident abroad risks having the green card revoked. This can happen if the "Green Card" holder has been absent from the US continuously for more than a year or is absent frequently (more than 50 percent) and only makes short visits to the US once or twice a year, a personal residence owns or bank / retirement account in the US does not protect against abandonment.
    • With a re-entry permit, the status of the "Green Card" is retained during your stay abroad.
    • A "contractor" is deemed to have emigrated under a contract at the "commencement" of the stay abroad unless the individual waives contract benefits and notifies the IRS on IRS Forms 8833 and 8854.
  • Waiver. A "green card" holder can voluntarily waive their "green card" by filing Form I-407 (Legal Permanent Resident Status Records) and avoid giving up within eight out of 15 years Complete the test by handing over your "card". "Green Card" before the first day of the eighth year.

Calculation mechanics:

• • • Determine the period of 15 years that will end when the "Green Card" is given up.
    • Note: If an individual has a legal permanent resident of the United States at any time during the calendar year, that individual is a legal permanent resident of the United States for that year. For example, arriving in the US on December 31st counts as a full year, just like leaving the US on January 1st.
    • A "Green Card" holder who has been legally resident for eight out of 15 years is considered an expatriate for tax reasons if the person 1) gives up their "Green Card" voluntarily; 2) Resolves to reside in a foreign country under the Contract Breaking Regulations, and does not waive contractual services; or 3) the government administratively or judicially ends the foreigner's "green card" status.
• Tax planning considerations for "Green Card" holders:
  • Verlassen Sie die USA und geben Sie die "Green Card" ab, indem Sie das Formular I-407 vor dem ersten Tag des achten Jahres einreichen.
  • Wenn der Inhaber einer "Green Card" für einen bestimmten Zeitraum in eine fremde Heimat zurückkehren möchte, ohne den Status der "Green Card" zu gefährden, muss vor der Reise eine Wiedereinreisegenehmigung eingeholt werden.
  • Wenn der Inhaber einer "Green Card" weiterhin in den USA wohnen möchte, aber eine langfristige Einstufung als Einwohner vermeiden möchte, muss er die "Green Card" rechtzeitig abgeben und den Status eines Nichteinwanderungsvisums erhalten.
  • Werden Sie US-amerikanischer Staatsbürger. Ein US-Bürger kann für immer im Ausland wohnen, ohne die Staatsbürgerschaft zu verlieren.
• Kommentar. Ein Ausländer, der sich mit einem Nichteinwanderungsvisum in den USA befindet und in den USA wohnhaft ist, unter dem Test "Wesentliche Anwesenheit" kann nicht ein langfristiger Wohnsitz werden, der den US-Expatriierungsregeln unterliegt.

IV. Planungsüberlegungen

Q1. Was sollten Sie vor dem Expatriieren beachten?

Antworten.

• Erhalten Sie zeitnahe und genaue Einwanderungs- und Steuerberatung.
• Eine gültige zweite Staatsangehörigkeit oder Staatsbürgerschaft besitzen.
• Identifizieren Sie sorgfältig das Eigentum und den Wert aller Vermögenswerte und Verbindlichkeiten.
  • Überlegen Sie, wie sich Eigentumsrechte darauf auswirken, wem welche Vermögenswerte gehören.
    • Vereinbarung vor oder nach der Hochzeit?
  • Gilt ein Common Law oder ein Community Property Regime?
• Bewerten Sie die Kosten der Steuern gemäß Abschnitt 877A und Abschnitt 2801 im Vergleich zum Verbleib als US-Steuerpflichtiger.
  • Ausgangssteuer – einmalige Kosten.
  • Weiter als US-Bürger – verursacht lebenslange jährliche Einkommenssteuern und potenzielle Nachlasssteuern beim Tod.
  • Wie wirkt sich die Ausbürgerung auf die Vermögensplanung mit mehreren Generationen aus? Dies ist besonders wichtig, wenn die Erben des Expatriate beabsichtigen, US-Bürger zu bleiben.
• Wenn potenzielle Expatriate den Zertifizierungstest nicht einhalten, sollten Sie überlegen, wie Sie die Nichteinhaltung beheben können vor zur Ausbürgerung (und gleichzeitig zur Beseitigung von Verstößen gegen FBARs).

Q2. Einige Planungsideen

Antworten.

• Schenken, um das Vermögen zu reduzieren. Reduzieren Sie das Vermögen für die Zwecke des Vermögenstests, müssen Sie es jedoch sorgfältig durchführen.
  • Erwägen Sie die Verwendung eines einheitlichen Kredits vor der Expatriierung, da der Kredit nach der Expatriierung nicht verfügbar ist.
  • Erwägen Sie die Verwendung unwiderruflicher Trusts, die keine Bewilliger sind. Vermeiden Sie "String" -Bestimmungen. B. Nachlasssteuer einbehaltene Zinsen und allgemeine Bestimmungen zur Ernennung.
  • Betrachten Sie Geschenke an den Ehepartner vor der Ausbürgerung; Das heißt, die Verwendung des unbegrenzten Ehe-Abzugs für die Schenkungssteuer, vorausgesetzt, Ihr Ehegatte mit US-Staatsbürger ist nicht im Ausland oder schenkt einem Ehegatten ohne Staatsbürgerschaft (der Betrag für 2020 beträgt bis zu 157.000 USD).
  • Überlegen Sie genau, wann Geschenke kurz vor der Ausbürgerung stehen.
    • Gemäß den Anweisungen des IRS-Formulars 8854 müssen Bilanzinformationen bereitgestellt werden. "(I) Wenn sich Ihre Vermögenswerte und Verbindlichkeiten in dem Zeitraum, der 5 Jahre vor Ihrer Ausbürgerung begann und an dem Tag endete, an dem Sie das Formular 8854 zum ersten Mal eingereicht haben, erheblich geändert haben, müssen Sie eine Erklärung zur Erläuterung der Änderungen. ")
  • Berücksichtigen Sie für Langzeitbewohner, die eine Auswanderung planen, mögliche Planungsmöglichkeiten im Zusammenhang mit der unterschiedlichen Definition des Bewohners für Einkommensteuerzwecke im Vergleich zur Definition für Schenkungssteuerzwecke und dem Schenkungspotenzial.
    • Vorsichtsmaßnahme: Diese Planungsidee erfordert eine sorgfältige Bewertung im Gesamtkontext der Einwanderungs- und Steuervorschriften im Zusammenhang mit der Ausbürgerung.
• Techniken zur Minimierung des Gewinns oder Einkommens unter der Ausgangssteuer.
  • Die Ausgangssteuer basiert auf dem beizulegenden Zeitwert (FMV) von Immobilien. Berücksichtigen Sie traditionelle Nachlassplanungstechniken und -fahrzeuge wie Familien-Kommanditgesellschaften, bei denen möglicherweise Bewertungsrabatte verfügbar sind. Seien Sie hier zeitempfindlich. Die Planung sollte ausreichend vor der Ausbürgerung erfolgen.
  • Verkauf der Residenz. Erwägen Sie, den Wohnsitz vor der Ausbürgerung zu verkaufen, wenn Sie anderweitig für den Ausschluss von 250.000 US-Dollar (500.000 US-Dollar für bestimmte verheiratete Steuerzahler) gemäß Abschnitt 121 qualifiziert sind.

Vor der Umsetzung von Planungsideen ist es wichtig, sich mit Ihren Einwanderungs- und Steuerberatern in Verbindung zu setzen.

Conclusion

Die Autoren würdigen den Beitrag von Steve Trow, Mitbegründer und inzwischen pensionierter Partner von Trow & Rahal, P.C., der zu früheren Iterationen einiger Inhalte in Abschnitt I dieses Artikels beigetragen hat.

Remarks

1 Siehe "Nachfrage nach Zweitpässen und Staatsbürgerschaft steigt", International Investment, 1. Dezember 2020.

2 Siehe "Die Steuerregeln wurden gerade geändert: Emotionen beiseite, macht Expatriating finanziellen Sinn?", Kevin E. Packman, Journal of Taxation, August 2008.

3 Siehe "Der IRS-Ansatz für den Umgang mit der Expat-Community ist schizophren", Kevin E. Packman, Estate Planning Journal, Januar 2020.

4 Siehe Holland & Knights vorherige Warnung "Neues IRS-Verfahren bietet günstigen Weg für nicht konforme Expatriates, um steuerkonform zu werden", 11. September 2019.

5 Siehe "IRS bietet einige Leitlinien zur neuen Auslandsabgangssteuer", Kevin E. Packman und Summer A. LePree, Journal of Taxation, März 2010.