The expatriation tax also applies an immediate tax on full retirement account balances, as if completely withdrawn on the year of expatriation (even though not actually withdrawn), not covered by any of the deemed sale reduction. Added on to ordinary annual earnings and investment income, this could easily create a tax rate of around 30% or more.And how do you estimate a 30% penalty? The expatriation tax is on deemed sales of assets with unrealized gains. Also, the amount that would otherwise be includible in gross income by reason of the deemed sale rule is reduced by $821,000 (for 2023).
This is arguably a much more hateful and harsh expatriation tax provision than the 'deemed sale' rule.
Statistics: Posted by TedSwippet — Thu Nov 21, 2024 3:37 am