There
are distinct immigration rules and tax rules. Seek advice from an immigration
lawyer and a tax adviser. You need both sets of rules.
Is the grass really greener on
the other side? When it comes to becoming an expatriate, you may want to do
your homework before ditching the passport.
Expatriation can be a difficult
transition for legal and tax reasons.
This was the subject of a recent
Forbes article titled “Thousands Leave U.S. Over Taxes—5 Rules If
You're Tempted.” Here are the
five points cited (and further explained) in the article:
- There are distinct immigration and tax rules;
- Tax motivation is irrelevant;
- Consider tax filings carefully;
- Plan before you go; and
- Expatriating really means leaving.
Taxation is not the only reason
to expatriate or the only difficulty you will face. Expatriation means an
entire restructuring of your legal and financial life, so the laws of both the
U.S. and your new country need to be considered.
Before saying goodbye to the
U.S., expect extra thorough scrutiny from the IRS.
For more information and articles on
estate planning and elder law topics, please visit our website
and sign up for our free monthly e-newsletter. You can also friend
our law practice's Facebook page (R Christine Brown).
Reference: Forbes
(August 12, 2013) “Thousands Leave U.S. Over Taxes—5 Rules If
You're Tempted”