US Exit tax for GC holders
Gemini scared me that US exit tax is applied to GC holder having networth >= 2M even if they have lived < 8 years on GC. The language in the IRS site is vague https://www.irs.gov/individuals/international-taxpayers/expatriation-tax Can anyone decipher this for me? #gc, #exittax, #pr, #us #immigration
Expatriation tax | Internal Revenue Service
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If you are a covered expatriate you pay an unrealized capital gains tax when you renounce your citizenship or green card. There are some exemptions though.
Is a GC holder with networth > 2M a covered expatriate?
Yes. You’re also a covered expatriate if you’re not in tax compliance or if your average income over the last 5 years is more than 190k (this number is adjusted every year for inflation)