Article: The income tax benefits of expatriation for resident aliens

Michael Black, Jan M.S.; Rosenberg
Caribbean Today
09-30-1994
The income tax benefits of expatriation for resident aliens.

With the advent of higher personal income tax rate (i.e. the present maximum marginal rate exceeds 39.6%) in the United States ("U.S."), a high income/high net worth U.S. income tax resident alien ("RA") may wish to examine the tax benefits of expatriation, a U.S. citizen must formally renounce U.S. citizenship and become a nonresident alien for U.S. income tax purposes ("NRA"), steps which require permanent changes of status and probable disruption of the taxpayer's lifestyle.

Expatriation by an RA (earlier articles appearing in Caribbean Today have explained the rules ...

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