
Saverin Says He Will Pay 'Hundreds of Millions' in Taxes - OoTheNigerian
http://bits.blogs.nytimes.com/2012/05/17/saverin-says-citizenship-move-not-made-for-tax-reasons/?ref=technology
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bluedanieru
The US already aggressively taxes its citizens living abroad, and merely
renouncing your citizenship does not end it. Not immediately, at least.
Saverin will continue to owe taxes to the US government the same as any other
US citizen living abroad, for ten years after renouncing his citizenship. This
generally amounts to paying the higher of the local tax or the US tax. That's
how it works for income tax anyway - not sure about capital gains.

So while I'm not surprised to see Chuck Schumer behind this piece of shit bill
being proposed, as a US citizen living outside the US: fuck. $148,000
liability over five years, or $2 million net worth and you are assumed to have
renounced for tax-evasion purposes. Fuck that shit.

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hnwh
the 10 yr thing ended in 2008, thankfully

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bluedanieru
That's good to hear. Do you have a source?

edit: All I've found is something that sounds a lot like the current bill, in
fact. Are you saying that income tax is _not_ taxed as though you are an
American citizen for the ten years after you renounce your citizenship? I'd
really like to confirm that.

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hnwh
Not the most clear explanation, but you can find other mentions of this on HN
and elsewhere

[http://www.irs.gov/businesses/small/international/article/0,...](http://www.irs.gov/businesses/small/international/article/0,,id=97245,00.html#_Expatriation_after_June_16),
2008

"IRC 877A imposes a mark-to-market regime, which generally means that all
property of a covered expatriate is deemed sold for its fair market value on
the day before the expatriation date. IRC 887A further provides that any gain
arising from the deemed sale is taken into account for the taxable year of the
deemed sale notwithstanding any other provisions of the Code. Any loss from
the deemed sale is taken into account for the taxable year of the deemed sale
to the extent otherwise provided in the Code, except that the wash sale rules
of IRC 1091 do not apply."

