what happens when you leave?

[bunbunaz]

I left way back in 2004 and so rules and regulations have probably changed since then but I'll share my experience nonetheless. My bank account has stayed active and I have online access to it even from the States where I currently live. The branch where my account was established may not even exist any more (in Yebisu Garden Place Tower). I changed my address to my wife's family's house before leaving Japan so new bank cards get sent there. When we visit I make a point to update my tsucho and usually make a withdrawl and/or deposit or two.

My Saison credit card did not have issues until about a year ago. Again, I had updated my address to wife's family's house so they got my new card. However about a year ago I got notice it was closed due to inactivity. It had probably been over a year since I used it. However after calling them up they were able to reactive my account and told me just to be sure to use the card at least once a year to ensure it continues to stay active. So now we just make a point of using that card for my mother-in-law's birthday cake each year. Easy to remember.

One last note is that when filing my U.S. tax returns there is a question about any foreign accounts but answering that question hasn't impacted my taxes.

[Ax6isB]

Here’s a new wrinkle I had not considered; unvested stock grants or awards. It looks like unvested stock will be used to 1) calculate if you meet the threshold 2) be taxed(!) even though you do not own these assets. I know someone in Singapore going through this now as she relocates to Canada and its an unpleasant surprise.

I’ve reached out to a tax consultant to get clarity regarding this.

In my research it seems that the RetireJapan founder wasn’t so worried about this tax back in 2018 https://www.retirejapan.com/blog/the-best-laid-plans/ Looking at your 5 year plan results, you may have a good problem to deal with if you consider leaving Japan

[RetireJapan]

In my research it seems that the RetireJapan founder wasn’t so worried about this tax back in 2018 https://www.retirejapan.com/blog/the-best-laid-plans/ Looking at your 5 year plan results, you may have a good problem to deal with if you consider leaving Japan

Yeah, I am still not particularly worried as 1) not planning to leave Japan, 2) if we left Japan we would have to close our investment accounts anyway, 3) all my net worth numbers are for my wife and I, and 4) if we were going to be affected we would sell enough to come in under the limit.

I don't think that law is aimed at or will particularly affect 'normal' people, but rather those with ten-figure+ net worths, and no matter how optimistic I get I can't see us getting to ten figures

[captainspoke]

... I can't see us getting to ten figures

Just add decimal places?

[TJKansai]

Being forced to have stocks with significant gains would result in some painful capital gains (some I have held over 20 years). Right now my plan to is pass them onto my kids/grandkids, where at least in the US the costs would be reset to the time of inheritance. I need to figure out the Japanese side, but with the way the laws keep shifting it is hard to pin down.

[beanhead]

Being forced to have stocks with significant gains would result in some painful capital gains (some I have held over 20 years). Right now my plan to is pass them onto my kids/grandkids, where at least in the US the costs would be reset to the time of inheritance. I need to figure out the Japanese side, but with the way the laws keep shifting it is hard to pin down.

Can you pass stocks to other people in Japan? I thought they needed to be sold and then the cash gifted. Anyone know?

[Ax6isB]

Here’s a new wrinkle I had not considered; unvested stock grants or awards. It looks like unvested stock will be used to 1) calculate if you meet the threshold 2) be taxed(!) even though you do not own these assets. I know someone in Singapore going through this now as she relocates to Canada and its an unpleasant surprise.

Just circling back on this as I think found the answer. Per PWC’s interpretation of the tax law in 2020, unvested restricted stock and stock options are excluded from the exit tax.