US still taxes citizens that move out of the US.
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This is a common misunderstanding. It requires that they file a tax return (which they shouldn't, IMO). But most US citizens living abroad that I've spoken to say that they pay very low or zero US taxes, unless most of their income is actually US source.
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I'd like to see a source for your claim here, as the IRS site suggests otherwise? irs.gov/individuals/in
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Just conversation. I wonder now if the people I've spoken with had renounced their citizenship.
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I don’t think that’s right. If you have residency outside the US you still have to file a tax return not necessarily pay tax, but if you renounce citizenship you’re done.
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Right doesn't mention having to pay for 10 years, or that you have to pay when you're non-resident. Also renouncing citizenship doesn't mean you can't visit the US :)
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It appears the 10 year thing is no longer in effect, although this was the case at one point.
They replaced it with an exit tax, which means upon renunciation, all of your assets, including businesses and properties, are taxed as though you sold them.
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Geez. So all your assets are treated as income upon renunciation, am I getting that right? (I'm a tax preparer BTW.)
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Damn well better have liquidity before you do that. If you were young & beginning to earn more it would make the most sense. My brother is a US citizen who lives in Singapore & China so we have discussed a bit.
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