There is a difference between retiring in Canada and remaining a US citizen (like I may do) ie residency in Canada and not becoming a Canadian citizen, and expatriation of citizenship and moving to Spain (or Canada, whatever)...
The expatriation tax provisions under Internal Revenue Code (IRC) sections 877 and 877A apply to U.S. citizens who have renounced their citizenship and long-term residents (as defined in IRC 877(e)) who have ended their U.S. resident status for federal tax purpose.
If your average annual net income tax for the 5 years ending before the date of expatriation or termination of residency is more than a specified amount that is adjusted for inflation of $160,000 either filing jointly or individual...
or....
Your net worth is $2 million or more on the date of your expatriation or termination of residency...
... then all of your net worth and wealth in assets, capital gains, including real estate is considered taxable in the year of your expatriation.
For the average Hollywood star or entertainer, this amounts to a tax rate of about 85% or more.
What to do if you haven't filed a Form 8854
You forfeit all your assets to IRS holding and seizure. This has become more broader in reach under Homeland security scrutiny and regulation oversight.
I welcome all Hollywood stars and "entertainers" to commit to their promise to quit America and move to wherever forever. Nice revenues to help pay for Trump's projects and reindustrialization. But I didn't setup those IRS laws, the Democrats did.
The expatriation tax provisions under Internal Revenue Code (IRC) sections 877 and 877A apply to U.S. citizens who have renounced their citizenship and long-term residents (as defined in IRC 877(e)) who have ended their U.S. resident status for federal tax purpose.
If your average annual net income tax for the 5 years ending before the date of expatriation or termination of residency is more than a specified amount that is adjusted for inflation of $160,000 either filing jointly or individual...
or....
Your net worth is $2 million or more on the date of your expatriation or termination of residency...
... then all of your net worth and wealth in assets, capital gains, including real estate is considered taxable in the year of your expatriation.
For the average Hollywood star or entertainer, this amounts to a tax rate of about 85% or more.
What to do if you haven't filed a Form 8854
You forfeit all your assets to IRS holding and seizure. This has become more broader in reach under Homeland security scrutiny and regulation oversight.
I welcome all Hollywood stars and "entertainers" to commit to their promise to quit America and move to wherever forever. Nice revenues to help pay for Trump's projects and reindustrialization. But I didn't setup those IRS laws, the Democrats did.
