Back to work after the Independence Day holiday weekend and feeling patriotic? We should remember that the presidential general election is just 4 months away (Nov 8th) – but what if your nightmare candidate wins in November?
A growing number of people are claiming that they will expatriate if the candidate they fear is elected. Whether it is Donald Trump or Hilary Clinton that scares you – there are some tax considerations to keep in mind:
– If you move but keep your citizenship, the U.S. will continue to tax you! The U.S. taxes its citizens on their worldwide income, no matter where they reside. You also won’t be able to escape the rules on reporting foreign bank accounts.
– If you move and give up your citizenship, you could owe an exit tax! – if your average annual tax for the five years before expatriating exceeds $161,000 or you have at least $2 million of net worth. You’ll be treated as selling all your assets for fair market value on the day before your expatriation date and will be taxed on the profit from the deemed sale that exceeds and exemption of nearly $700,000.
Lot to consider – plan wisely and make sure you vote!