US Expatriation Planning & Exit Tax Computations

US Expatriation and Exit Tax Computations

In addition to income taxes, individual who expatriate from the US who are considered covered expatriates, may be required pay a special exit tax. Planning for such an event is key, as covered expatriates are generally required to pay additional taxes on the difference between the fair market value of their assets and the tax basis in those assets at the time of expatriation. While a portion of the gain may be excluded, the tax effects of expatriation may be significant. Tax planning and guidance prior to an expatriation event may be helpful in mitigating the effects to an individual.