With the levels of Americans denouncing their citizenship increasing, one cannot only assume it is for tax reasons, says Rob Wood, tax attorney with Wood, LLP in San Francisco, California. In talking with his clients about ex-patriating, there are several things his clients are considering.
In terms of ex-patriating, one can either give U.S. citizenship or give up the U.S. as their permanent residency. Many people who have dual or triple citizenships assess how much time they actually spend in the U.S. and what levels of difficulties and compliance they may face, says Wood. People may be looking at owning a foreign company and don't want to deal with the extra level of scrutiny of being a U.S. citizen and don't want to be discriminated against. Wood says they may realize life may be simpler and may save money by leaving the U.S.
There is also the debate about the tax systems, Wood says and tax reform in the U.S. is not coming anytime soon. With the worldwide income tax system, it means you're paying tax in multiple countries and are usually paying some double tax, which can rub people the wrong way when considering ex-patriating, Wood says.
For more information on the article written in Forbes magazine about this, click here. Robert Wood is a tax attorney with Wood, LLP in San Francisco, California and spoke with The Tax Law Channel, an affiliate of The Legal Broadcast Network. The Legal Broadcast Network is a featured network of the Sequence Media Group.