View Full Version : Facebook Co-Founder Saverin Renounces U.S. Citizenship Before IPO
"Renouncing your citizenship well in advance of an IPO is “a very smart idea,” from a tax standpoint, said Avi-Yonah. “Once it’s public you can’t fool around with the value.” "
"Renouncing citizenship is an option chosen by increasing numbers of Americans. A record 1,780 gave up their U.S. passports last year compared with 235 in 2008, according to government records. "
The IRS is going to be all kinds of butt-hurt that they won't be able to extort all that money from him.
not just the irs!
I find it interesting the rise in numbe of Americans who have done this versus 08.
seems to suggest that tax policy has an impact on where people choose to live.
also seems to indicate that the wealthy are moble afterall.
Well, I just got a good reason to deactivate my Facebook account.
We are the only country in the world that taxes its citizens on income earned abroad. That would be like a New Yorker moving to California and still being taxed in New York on his California income!
If you are a European who moves to the US your home country does not tax you on your US income. You would only be taxed on investment income earned on investments maintained in your home country. If you moved the accounts to the US you would only be subject to a withholding tax on your investment income from companies based in your home country, just like a US citizen would be.
the exit tax is interetsting.
perhaps this is where inmates got the idea of the "exit tax" on prisoners getting out?
thread on same topic beat me to it. suggest we go there. some interesting comments. thanks!
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