Gold Prices and Expatriation
Expatriation and Gold Prices
by Mark Nestmann
The Nestmann Group, Ltd.
When the gold price hit $1,800/oz. today, the first thought I had wasn’t to congratulate myself for buying most of what I own for under $400/oz. It was wondering how soon my own gold holdings would make me a “covered expatriate.”
If this sounds like Greek to you, let me explain. Under the U.S. Tax Code a covered expatriate is someone who may have to pay an exit tax upon giving up U.S. citizenship or long-term residence, among other unpleasant consequences.
I’m not yet a covered expatriate, but if gold prices go much higher, I will be. If I subsequently expatriate, I may not only have to pay an exit tax but also pay tax on the full value of my IRAs. Plus, as a covered expatriate, I can’t make gifts to U.S. persons without the recipient being required to pay a transfer tax up to 35% if the value of the gifts exceeds $13,000/year. That rate is slated to rise to 55% in 2013.
The most common way to become a covered expatriate is to have a net worth that exceeds $2 million. As global central banks create more and more money out of thin air, anyone who owns a significant quantity of gold will soon meet that threshold.
I’m not ready to expatriate, so I must take the risk of becoming a covered expatriate as gold continues to rise. But if you want to sever your responsibility to file U.S. tax and information reporting returns, and eliminate increasingly onerous restrictions on your ability to live, work, invest, or do business overseas, you must give up your U.S. citizenship and passport.
How to Expatriate
There are four steps a U.S. citizen or permanent resident must take to expatriate:
Step 1. Move your assets to safer havens where there is enhanced protection for wealth. Some of the most popular wealth havens include Switzerland, Liechtenstein, and Austria in Europe; Panama and Uruguay in Central and South America; and Hong Kong and Singapore in Asia.
|
|
Step 2. Find a residence country that offers greater personal freedom. These are the countries that you may wish to relocate to in the future. Or buy property there, “just in case.” Popular countries for U.S. expats to live in and/or buy property include: Argentina, Belize, Canada, Costa Rica, Ecuador, Mexico, Nicaragua, Panama, and Uruguay in the Americas; the Bahamas, the Cayman Islands, the Dutch territories and St. Kitts & Nevis in the Caribbean; Belgium, Cyprus, Malta, Switzerland, and the United Kingdom in Europe; and Australia, Hong Kong, New Zealand, the Philippines and Singapore in Asia.
Step 3. Get another passport. Since the only way U.S. citizens can legally terminate their obligations to the U.S. government is to give up U.S. citizenship and passport, they must obtain a second passport in order to expatriate. If you don’t qualify for a second passport by naturalization, marriage, or religion, by far the fastest route to obtain one is to purchase one. The Commonwealth of Dominica and the Federation of St. Kitts & Nevis offer citizenship and passport through a qualifying contribution or investment. There are also two EU countries that will award citizenship and passport to individuals who make outstanding contributions to those countries, including financial contributions.
Step 4. Expatriate from the USA. You can accomplish Steps 1-3 while still residing in the United States. At this point, you face a choice: to expatriate or not? Expatriation is a radical step. There are many complications, beginning with the possibility of paying an exit tax for the privilege of permanently severing your national ties. There’s also the possibility that Congress will eventually make expatriation much more difficult. In another decade, perhaps less, the price of expatriation may be to present a balance sheet to the IRS, and give half the number appearing on the bottom line to Uncle Sam.
When you’re ready to expatriate, it’s easiest if you’re not a covered expatriate. But even if you are, with proper planning, you can reduce or eliminate exit taxes and use your $5 million lifetime gift/estate tax exclusion to make lifetime gifts to your loved ones remaining in the USA.
Replies to This Discussion
-
Permalink Reply by Henry Massingale on
-
You know, I kind of been checking into why, Government bought up so much Gold at a prise, beyond its value, its a way that my mind says, people are about to get bitten whe gold prises dump, just call it that little voice that talks to me. You know I am going to call some of my friends, about this balance lost to my insite...
Henry
-
-
Permalink Reply by Jose Villarreal on
-
Great article Nikki
-
-
Permalink Reply by Maria De Wind on
-
Take Heed of this advice
Now if Nestmann had only given details abut the two EU countries that will award citizenship and passport to individuals who make outstanding contributions to those countries ...
-
-
Permalink Reply by TheLasersShadow on
-
Im sorry If you leave the USA and don't fight to restore the country ... your a coward unless you have a bunch of kids to look after. Thats the only excuse i can see being valid to leave the country.
Don't try and slither back after the revolution we don't want you!!!
-
-
-
-
-
- "Wishes can come true. But not if you just wait for miracles. Miracles are things we make for ourselves. Here, and now."
- —Vanille
-
-
Permalink Reply by Nikki on
-
That's the truth Maria. The sheeple allowed this to happen and now they have the government they deserve. How many times have I heard someone say "Oh, I don't follow politics. I have a job and kids and I just don't have the time. But I vote and I expect my representatives to do the right thing." The trouble is they have no clue what the representatives they voted for are doing and whether it's the right thing or not. And then there's the real dumb ones you meet at parties and someone mentions the wars and they say "Well that's the price of freedom" with a smug little grin. And when you point out that these countries never did anything to deserve being invaded, they say "Our govt sometimes makes mistakes but overall they do what's best for our freedom." They really believe it and there's no way to change their minds.
-
-
Permalink Reply by Cryptocurrency on
-
Nikki, they lack any real discernment. They were taught in school to regurgitate information from the authority figures there. Now they repeat the same learned behavior when they watch television ergo a perceived authority figure gives them information and they rely on that information as their conversational talking points on a particular subject matter. They are LEFT brain prisoners; drones with very little creative potential or true identity. I think America is a society full of people with personality disorders of every type from mild to severe and nearly everyone in the shopping mall has had their minds programed to be text book narcissists - if I had to define the sheople majority under one mental illness designation it would be: narcissistic personality disorder.
You've studied psychology, tell me I'm wrong.
-
"Destroying the New World Order"
THANK YOU FOR SUPPORTING THE SITE!
Latest Activity
- Top News
- Everything
Hooray for Russian TV
".Supposedly, Russians have evidence that links Burisma and the recent terror attacks. Burisma for…"
True Story
"Well I bet Iran remembers that true story. ~ and there in lies the problem...because they would…"
Hooray for Russian TV
" That one is a shocker! even for them. What could have driven and compelled them to dredge up…"
It Wasn't Fauci: How the Deep State Really Played Trump (mini-doc)
"Excellent video. I hope this one makes it to the features page it sure deserves it. Answers a lot a…"
Governor Signs Climate Engineering Ban Legislation Into Law
https://www.GeoengineeringWatch.orgTo support Geoengineering Watch: http://www.geoengineeringwatch.org/support/Contact us: Dane Wigington, P.O. Box 9, Bella ...
How They Will Use Your Doctor to Disarm You
"why of cause Any Mental Health issue would be enough to cause concern and it's known that in…"
How They Will Use Your Doctor to Disarm You
Can you imagine your doctor actively trying to disarm you? Well that may not be too far fetched when you consider what is happening inside the medical commu...
© 2024 Created by truth.
Powered by
