Many people over the last year were overheard stating they intended to leave the country if the candidate they disliked won the election for President of the U.S.. Well here are some tax consequences of the move:
If you keep your citizenship and move out of the U.S., you are still required to pay U.S. taxes on all worldwide income. Don’t forget to indicate foreign bank accounts with more than $10,000 on your tax return.
If you give up U.S. citizenship, there is an “Exit” tax. Yup, who would have guess it?!!! However the tax only comes into play if your average annual tax for the previous five years was greater than $161,000 OR you have at least $2 million in net worth. The government treat it as if you sold all your assets, lets you deduct $700,000 as an exemption, and you will pay an “Exit” tax on the remainder.
So, just how badly do you want to leave?