cooper wrote: ↑Mon Jan 22, 2024 12:54 am
Has anyone here given up their US citizenship solely on the merits of taxes? Were there any surprises? Or regrets (not just financially)?
What happens to US accounts when a citizen gives up citizenship? For example, a 401k account or a taxable brokerage account, will the financial institution force you to close the account since the social security number is no longer valid? That was the question that came up for me when thinking about this approach, but I haven't dug for the answer yet.
Even if assets/income are under the US exit tax limit, if all the US based financial institutions forced closure of accounts due to no longer being a US Citizen, that could be rough to have to take gains across the board. Does Interactive Brokers allow incoming asset transfers that wouldn't force a sell of the assets?
cooper wrote: ↑Mon Jan 22, 2024 12:54 am
Has anyone here given up their US citizenship solely on the merits of taxes? Were there any surprises? Or regrets (not just financially)?
What happens to US accounts when a citizen gives up citizenship? For example, a 401k account or a taxable brokerage account, will the financial institution force you to close the account since the social security number is no longer valid? That was the question that came up for me when thinking about this approach, but I haven't dug for the answer yet.
Even if assets/income are under the US exit tax limit, if all the US based financial institutions forced closure of accounts due to no longer being a US Citizen, that could be rough to have to take gains across the board. Does Interactive Brokers allow incoming asset transfers that wouldn't force a sell of the assets?
This is something I'm quite curious about in regards to bank and securities accounts. I sold off a lot of of my US securities to pay taxes in Japan and retain stock grants.
My biggest concern is retirement accounts, and I saw that your IRA account takes a 10% penalty if you withdraw early due to. a change in citizenship.
Nancy wrote: ↑Mon Jan 22, 2024 2:28 pm
I just relinquished US citizenship for Japanese and it is a bit time consuming but very doable. The good thing about Japan is that real estate does not increase in value, so your chance of being considered a covered expatriate is much lower than in other countries (if you have over 2 million dollars in assets the US government actually taxes you, besides having to pay the 2400 dollar fee. )You can't say that you are relinquishing for tax purposes though... but think of another reason to write on your application to the US government.
Thanks for the info -- let me PM you with another question
