Can Form 8854 Attributable 2023-2024

Hey guys, it's Andrew Henderson from Nomad Capitalist, nomadcapitalist.com. I'm here in Kuala Lumpur and I wanted to share with you a tutorial that I explained to a gentleman named Joseph earlier today. It's about renouncing US citizenship and how the US exit tax works for those who do renounce their citizenship. Joseph is a cryptocurrency investor. We recently did a video on cryptocurrency where I mentioned that the recent drops in cryptocurrency prices can actually be a great opportunity, whether you're in the US or another high tax country, as it can serve as an exit tax for departing residents. Now is a good time to organize your affairs and significantly reduce your exit tax when you leave. However, for US citizens who want to renounce their citizenship, there is confusion regarding the issue of whether they will be subject to an exit tax. So, let me explain how it works. When you're a US citizen and you officially expatriate, the US government may impose an exit tax on all your assets, considering them sold at market value. This happens on the day you renounce your citizenship, after giving the oath of renunciation. From that point, you are no longer a US citizen except for tax purposes. The government evaluates your net worth, the value of your businesses, your cash, and all other assets, including cryptocurrencies, to determine the exit tax. There are three ways to trigger the exit tax and become a "covered expatriate." One common way people get stuck with this status is by not being tax compliant in the US. There are individuals who were born in the US but never considered themselves American because they live in countries like the Netherlands or Canada. However, they are still US citizens by birthright and are required to file taxes in the...