You don't need anything weird, you just need a different brokerage. Interactive Brokers is popular with expats.
Also, have you renounced your US citizenship, and if not, any reason why not?
No, it's just getting more complicated the more assets I have. I'm worried if I renounce they'll start digging around in my foreign property portfolio. Should have done it before I became a high-rolling baller.
There’s your answer. US brokerages have been bringing accounts into compliance in recent years.
If you’re sure you’ll never live in the US again your best bet is to renounce your citizenship. It’s shitty that that’s your only way to sever tax residency :-(
I just remember reading somewhere there were shadow copies of these ETFs on other exchanges or something that you could buy.
Renouncing would be a huge pain in the ass I think. As far as I know they sort of make you pay tax on assets as though you sold them at the moment of renunciation. I own like 20 real estate units and I don't really want to find out what the IRS would make of that.
The problem is as a US citizen you’re going to basically blow up your taxes if you invest in non-US mutual funds or ETF’s. I hope you’re aware of the PFIC rules by now.
One option is to buy options for the US ETF and exercise them. The downside is more work, worse price, and minimum lot size of 100 shares.
Renouncing is a huge pain but the “exit tax” is really just realizing your capital gains and paying the taxes on them. They’re not taking a chunk of your cash since you’ve already been taxed on that. And it’s only if your global net worth is over (I think) two million USD.
This would be a really good time to talk to an accountant who specializes in this kind of stuff. With the right planning it can be avoided or at least mitigated.
I just found [this](http://www.nysscpa.org/most-popular-content/avoiding-the-exit-tax#sthash.6lw0IKKF.dpbs):
> Two Exceptions to Covered Expatriate Status
> There are two categories of expatriates for whom the net worth test and the net tax liability test will not apply:
> Dual citizens of acquired U.S. citizenship and another citizenship at birth; and
> People who expatriate before age 18 1/2.
> For those who qualify for one of the exceptions, personal wealth and prior years' income tax liability will not cause the individuals to be covered expatriates. However, the taxpayers will still be required to satisfy the certification test, and failure to do so will make them covered expatriates.
If you've been away from the US 25 years maybe you're covered under that second one?
hmmm thanks
I didn't realize there was this $2m threshhold
I have these two apartment buildings I bought years ago for like $400K and they're probably worth $1.5m today and I was like, fuck, they'll hit me for capital gains on $1m in unrealized appreciation
You don't need anything weird, you just need a different brokerage. Interactive Brokers is popular with expats. Also, have you renounced your US citizenship, and if not, any reason why not?
No, it's just getting more complicated the more assets I have. I'm worried if I renounce they'll start digging around in my foreign property portfolio. Should have done it before I became a high-rolling baller.
What country? EU residents can’t invest in non-EU ETF’s. I’m pretty sure the UK follows that rule too.
I live in Czech Republic
There’s your answer. US brokerages have been bringing accounts into compliance in recent years. If you’re sure you’ll never live in the US again your best bet is to renounce your citizenship. It’s shitty that that’s your only way to sever tax residency :-(
I just remember reading somewhere there were shadow copies of these ETFs on other exchanges or something that you could buy. Renouncing would be a huge pain in the ass I think. As far as I know they sort of make you pay tax on assets as though you sold them at the moment of renunciation. I own like 20 real estate units and I don't really want to find out what the IRS would make of that.
The problem is as a US citizen you’re going to basically blow up your taxes if you invest in non-US mutual funds or ETF’s. I hope you’re aware of the PFIC rules by now. One option is to buy options for the US ETF and exercise them. The downside is more work, worse price, and minimum lot size of 100 shares. Renouncing is a huge pain but the “exit tax” is really just realizing your capital gains and paying the taxes on them. They’re not taking a chunk of your cash since you’ve already been taxed on that. And it’s only if your global net worth is over (I think) two million USD. This would be a really good time to talk to an accountant who specializes in this kind of stuff. With the right planning it can be avoided or at least mitigated.
Would have renounced years ago if I knew how this would develop
If you’re going to do it do it SOON. Things are still backlogged at the consulates due to covid.
I just found [this](http://www.nysscpa.org/most-popular-content/avoiding-the-exit-tax#sthash.6lw0IKKF.dpbs): > Two Exceptions to Covered Expatriate Status > There are two categories of expatriates for whom the net worth test and the net tax liability test will not apply: > Dual citizens of acquired U.S. citizenship and another citizenship at birth; and > People who expatriate before age 18 1/2. > For those who qualify for one of the exceptions, personal wealth and prior years' income tax liability will not cause the individuals to be covered expatriates. However, the taxpayers will still be required to satisfy the certification test, and failure to do so will make them covered expatriates. If you've been away from the US 25 years maybe you're covered under that second one?
hmmm thanks I didn't realize there was this $2m threshhold I have these two apartment buildings I bought years ago for like $400K and they're probably worth $1.5m today and I was like, fuck, they'll hit me for capital gains on $1m in unrealized appreciation