Glossary · US Tax
Exit Tax
The US exit tax can apply when a long-term green card holder or citizen gives up that status and meets certain wealth or income thresholds. It treats worldwide assets as sold at fair market value on the day before expatriation.
Expatriation Tax
In more detail
When a covered expatriate — broadly someone above set net-worth or tax-liability thresholds, or not certifying tax compliance — renounces citizenship or abandons a long-held green card, the US can impose a mark-to-market exit tax, deeming their worldwide assets sold the day before exit. It is a significant consideration for anyone weighing renunciation, and careful planning can affect whether and how it applies.
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