Where Form 8854 Renounce 2023-2024

Hi everybody, my name is David McKean. I'm with Greenback Expat Tax Services and our question today is about the tax implications of giving up a Green Card. As a Green Card holder, you are treated like a US citizen for tax purposes. The same is true if you decide to give up your Green Card. Basically, you will face the same exit tax that a US citizen would face if they were renouncing their citizenship. You only face this exit tax if you are what we call a "covered expat." So, how do you become a covered expat as a Green Card holder? If you have held a Green Card for eight of the last 15 years prior to leaving the United States, you would be considered a covered expat. You could also be considered a covered expat if your net worth is over two million dollars or if your average annual tax liability was greater than $150,000 in 2013, $151,000 in 2012, $147,000 in 2011, and $145,000 in 2010 and 2009. So, if your tax liability was over $155,000, or if you have not been compliant with your US taxes for the last five years, you will be considered a covered expat. What does it mean to be a covered expat? Basically, it means that all of your global assets will be treated as if they were sold on the day before you give up your Green Card, at their fair market value. This can be a significant tax burden for someone, but there is a big exclusion that goes with it. Currently, the exclusion amount is $660,000. So, if the value of your assets is over $660,000 when you sell them, you will face a tax rate of 39.6% on those monies. If the total value of your assets is...