Can Form 8854 Applies 2023-2024

Hi, my name is Jimmy Sexton and I'm the president of Esquire Group. Welcome to our segment on expatriation. So, what is expatriation? Well, expatriation is either relinquishing your US citizenship or abandoning your long-term resident status. A long-term resident is someone who has been a green card holder, a permanent resident of the United States, for eight of the last 15 years. So, if you're a green card holder and you have been for the last eight of 15 years and you abandon that green card, you're gonna be considered to have expatriated. So, what are the tax consequences of expatriation? Well, in order to determine what the tax consequences are, we first have to determine whether or not you are a covered expatriate. A covered expatriate is somebody who has a net worth of more than 2 million dollars and an average income tax liability of $160,000 or more for the five-year period preceding the expatriation date. Then, $160,000 is adjusted for inflation, so it changes a little bit every year. Or, somebody who fails to certify that they've been in compliance with US tax laws for the five years preceding the expatriation date. If you're an uncovered expatriate, it's pretty simple. There aren't really any tax consequences to expatriation. If you're a covered expatriate, on the other hand, there are going to be some potentially serious tax consequences. There are essentially four different tax consequences that you'll have to keep in mind if you expatriate as a covered expatriate. The first is a mark-to-market tax, basically a capital gains tax on all of your unrealized gains. Unrealized gains are gains built into assets that have appreciated but not yet been sold. So, for example, assume you bought a house for $300,000 and it's now worth $500,000. There's been a $200,000...