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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MoneyPenny who wrote (137066)	7/28/2008 2:29:22 PM
From: orkrious	Read Replies (1) \| Respond to of 306849

It is called the Heroes Act and this provision is inserted into an bill that provides certain help to veterans of the Iraq war. It imposes a tax on people expatriating if their net worth is over $2m. It is calculated like the Estate tax and treats all property as being sold and all deferred income retirement accounts as being distributed. There is an exclusion of $600k for any unrealized gain or deferred income. I remember someone (I think it was Jay Chen) posted a few years ago that when you move permanently away from US you have to pay takes on any unrealized gains. It was well before this law was passed. I'm not sure what changed in the new law, but I distinctly remember thinking when I read that post that it seemed reasonable to me. Your investments appreciated while you were a US citizen, why shouldn't the gov't be entitled to collect? (Note that I don't support our tax system, just saying that given what the system is that the law seems fair.)