To contact him directly with additional questions, click this link Jason M. Tyra, JD, CPA, MBA
My wife and I are considering moving to another country post-retirement. If I’ve paid my crypto taxable events up to the point of the move date, what happens to future gains – or losses? a) if we remain US citizens? b) if we denounce our US citizenship?
A U.S. person (either U.S. national or permanent resident) who is not a resident of Puerto Rico must report their worldwide income each year to the IRS by filing an income tax return. This is true whether they resided in the US or resided abroad for all or part of the year. A U.S. person residing outside the United States for all or part of the tax year may also be required to report income and pay tax to other non-U.S. jurisdictions but may be eligible to claim a credit for tax paid or to omit all or some non-U.S. income from their U.S. return.
A person who renounces their U.S. citizenship is no longer subject to U.S. tax reporting requirements unless they later re-apply for U.S. citizenship or permanent residency. However, one of the requirements to renounce is an “exit tax” on any capital assets held as of the taxpayer’s last day as a citizen. Any such asset is deemed disposed on that date, and either a gain or loss is recognized for tax purposes as the case may be.