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Old 25.01.2013, 11:40
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Re: Tina Turner to become Swiss

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Only if you have more than $2M or so.

Or have an average annual US federal income tax liability of 150K or higher over the past 3 years or something.

Luckily there is a special clause in the exit tax law (Section 877 created by the 2008 HEART Act) that exempts US citizens by birth who also acquired another citizenship at birth, continues to hold that other citizenship at time of renunciation, has been a US resident for no more than 10 of the past 15 years and is a tax resident of the other country of citizenship (acquired at birth) when renouncing.

Essentially, that means if I win the lottery or become super rich and have a lot of potentially realizable capital gains, I will just take a short vacation to my country of birth, register there as a tax resident, immediately renounce my US passport (acquired by birth abroad) at the embassy there to avoid the whole draconian exit tax as I fulfill all conditions for the exemption.

Last edited by brusch; 25.01.2013 at 11:58.
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