I am a Canadian citizen and my wife is a dual U.S./Canadian citizen.
In calculating her net worth for the purpose of determining whether she is "covered" within the exit tax calculation, what portion of our jointly owned assets will be used?
I've done a lot of searching on this and can find no definitive answer. I think I found that if we were both US citizens the limits would be doubled, but nothing that addresses our (fairly common I would think) situation.
U.S. expatriation tax - calculation of net worth
Moderator: Mark T Serbinski CA CPA
-
onlynewsky
- Posts: 8
- Joined: Mon May 21, 2012 11:41 pm
- Contact:
longchampbagstore
Probabilities are you��re presently recycling the cans, bottles, and paper that gets picked up with the curb, but what about all that other stuff that��s lurking inside your drawers or closets �C like out-of-date devices and lifeless batteries �C that you��re not sure how to recycle? The next residence products are particularly crucial to donate or recycle since they incorporate components that will contaminate the earth whenever they wind up in landfills or which can very http://www.longchampbagstore.com/ longchamp bag[/url] easily be reclaimed to be used in new merchandise. Here are a few practical ways to retain them from the trash:
one.?Electronic devices:?All?Office environment Depot,?Staples, and?Very best Buy?suppliers accept larger electronics like desktop personal computers for recycling to get a modest charge (normally $10) and more compact ones like cell phones and PDAs free of charge.?Goodwill?outlets take made use of computer system machines (some destinations also settle for televisions) totally free.?
Why: You��ll maintain poisonous resources like direct, mercury, cadmium, arsenic, and brominated flame retardants out of landfills. And useful supplies shall be recovered, keeping electricity and assets.
two.?Rechargeable batteries:?From cordless phones and electricity resources, digital cameras, together with other gizmos �C these is usually recycled for free at 30,000 drop-off points nationwide, such as sellers like as Residence Depot, Lowe��s, RadioShack, Sears, and Target. Enter your zip code at?Call2Recycle?to seek out 1 in your area.
Regrettably, it��s extra tough to uncover spots to recycle?alkaline (or single-use)?batteries. Try out?Earth911?to discover drop off places or order a box (for $34.fifty, including prepaid shipping) from?Battery Answers?and http://www.longchampbagstore.com/longch ... k-c-2.html]longchamp backpack[/url] ship them as many as twelve pounds of alkaline and/or rechargeable batteries for recycling.
Why: Like numerous electronic devices, batteries consist of large metals and also other substances most effective stored from the waste stream. As well as, recyclers reclaim metals from them that happen to be employed to make, one example is, new batteries and metal.
3.?Compact Fluorescent Mild Bulbs?use seventy five p.c much less electricity than incandescent bulbs, but they incorporate a tiny number of mercury and shouldn��t be thrown inside the trash. Require them to any Ikea or Home Depot retail store for recycling or head to?Lamp Recycle?to find other drop off places near you.
Why: CFLs in landfills can break and release mercury, a neurotoxin, in the ecosystem.
four.?Plastic Baggage:?Even if you��ve switched to reusable bags for your personal shopping, you probably have got a bunch of such trapped in your own home. The good news is, a great deal of merchants like Wal-Mart, Safeway, Albertsons, Wegmans, Krogers, and Giant now have bins where you can recycle plastic grocery http://www.longchampbagstore.com/]longchamp bags bags (and newspaper, drycleaning, bread, and sealable food items storage baggage). To seek out a drop off spot in your area, head over to?Plastic Bag Recycling?or?Earth911.
Why: They��re made out of petroleum, a non-renewable source, and when thrown absent they have a really very long time and energy to decompose. Recyclers will change them into new goods like plastic lumber.
five.?Everything you don��t need that might be of good price to some others?�C for example, you'll be able to donate your utilised prescription eyeglasses for the nonprofit OneSight at any LensCrafters, Pearle Vision, Sunglass Hut, Goal Optical, or Sears Optical area (or check out?Just one Sight?for much more spots near you). You are able to also donate abandoned, unexpired medications such as antibiotics, discomfort relievers, and many others by mailing them on the?Health Equity Undertaking. The eyeglasses and prescription drugs will be distributed to individuals in need in building countries.
Take into account that you ought to constantly recycle hazardous substances like paint, pesticides, propane fuel tanks, and motor oil at your town��s home hazardous squander assortment occasions or everlasting selection middle. Check out?Earth911or simply call 1-800-CLEANUP to seek out selection web pages and events.
Are you able to propose additional ways of recycling merchandise that aren��t picked up with the curb? Reveal them with us by commenting under:
(content by using recyclebank.com)
one.?Electronic devices:?All?Office environment Depot,?Staples, and?Very best Buy?suppliers accept larger electronics like desktop personal computers for recycling to get a modest charge (normally $10) and more compact ones like cell phones and PDAs free of charge.?Goodwill?outlets take made use of computer system machines (some destinations also settle for televisions) totally free.?
Why: You��ll maintain poisonous resources like direct, mercury, cadmium, arsenic, and brominated flame retardants out of landfills. And useful supplies shall be recovered, keeping electricity and assets.
two.?Rechargeable batteries:?From cordless phones and electricity resources, digital cameras, together with other gizmos �C these is usually recycled for free at 30,000 drop-off points nationwide, such as sellers like as Residence Depot, Lowe��s, RadioShack, Sears, and Target. Enter your zip code at?Call2Recycle?to seek out 1 in your area.
Regrettably, it��s extra tough to uncover spots to recycle?alkaline (or single-use)?batteries. Try out?Earth911?to discover drop off places or order a box (for $34.fifty, including prepaid shipping) from?Battery Answers?and http://www.longchampbagstore.com/longch ... k-c-2.html]longchamp backpack[/url] ship them as many as twelve pounds of alkaline and/or rechargeable batteries for recycling.
Why: Like numerous electronic devices, batteries consist of large metals and also other substances most effective stored from the waste stream. As well as, recyclers reclaim metals from them that happen to be employed to make, one example is, new batteries and metal.
3.?Compact Fluorescent Mild Bulbs?use seventy five p.c much less electricity than incandescent bulbs, but they incorporate a tiny number of mercury and shouldn��t be thrown inside the trash. Require them to any Ikea or Home Depot retail store for recycling or head to?Lamp Recycle?to find other drop off places near you.
Why: CFLs in landfills can break and release mercury, a neurotoxin, in the ecosystem.
four.?Plastic Baggage:?Even if you��ve switched to reusable bags for your personal shopping, you probably have got a bunch of such trapped in your own home. The good news is, a great deal of merchants like Wal-Mart, Safeway, Albertsons, Wegmans, Krogers, and Giant now have bins where you can recycle plastic grocery http://www.longchampbagstore.com/]longchamp bags bags (and newspaper, drycleaning, bread, and sealable food items storage baggage). To seek out a drop off spot in your area, head over to?Plastic Bag Recycling?or?Earth911.
Why: They��re made out of petroleum, a non-renewable source, and when thrown absent they have a really very long time and energy to decompose. Recyclers will change them into new goods like plastic lumber.
five.?Everything you don��t need that might be of good price to some others?�C for example, you'll be able to donate your utilised prescription eyeglasses for the nonprofit OneSight at any LensCrafters, Pearle Vision, Sunglass Hut, Goal Optical, or Sears Optical area (or check out?Just one Sight?for much more spots near you). You are able to also donate abandoned, unexpired medications such as antibiotics, discomfort relievers, and many others by mailing them on the?Health Equity Undertaking. The eyeglasses and prescription drugs will be distributed to individuals in need in building countries.
Take into account that you ought to constantly recycle hazardous substances like paint, pesticides, propane fuel tanks, and motor oil at your town��s home hazardous squander assortment occasions or everlasting selection middle. Check out?Earth911or simply call 1-800-CLEANUP to seek out selection web pages and events.
Are you able to propose additional ways of recycling merchandise that aren��t picked up with the curb? Reveal them with us by commenting under:
(content by using recyclebank.com)
123 newsky
I'm not disagreeing with primo, because I really don't know the answer to netrover's question.
Is it possible that the notion of "community property" implies that *all* assets are considered joint, not just the ones that have both names listed as owners?
When our wills were made up years ago, our notary (a lawyer who cannot represent a client before the court -- in Québec) researched the laws of the place where we were married, and the laws of the places where each of us was legally resident at the time of marriage to determine property issues. I don't know whether you have the time or the money to consult a notary or lawyer to answer your question; he would have to be knowledgeable in US tax law as well.
Is it possible that the notion of "community property" implies that *all* assets are considered joint, not just the ones that have both names listed as owners?
When our wills were made up years ago, our notary (a lawyer who cannot represent a client before the court -- in Québec) researched the laws of the place where we were married, and the laws of the places where each of us was legally resident at the time of marriage to determine property issues. I don't know whether you have the time or the money to consult a notary or lawyer to answer your question; he would have to be knowledgeable in US tax law as well.
Filo, I think you are right about all assets being considered joint, at least if they were acquired after marriage. In my own case, all assets are joint but for RRSPs and those have almost equal amounts in them. I found the link for Phil Hodgen's explanation (it agrees with your more complete explanation)
http://hodgen.com/question-about-expatr ... om-reader/
http://hodgen.com/question-about-expatr ... om-reader/
primo -- thank you for that link.
I have often seen the $636,000 figure mentioned, but not the $2,000,000 figure. I'm not rich, but I own a house, and that really louses things up because it was bought when the Canadian dollar was low, so the US-calculated capital gain of a deemed disposition is high. As to whether the exclusion amount for selling a domicile mentioned in the form 1040 instructions applies to a person expatriating (renouncing citizenship), I don't know.
I will stubbornly fill out almost any tax form, but the 8854 is way too crucial. Who do potential expats hire to evaluate their situation in advance to help them decide whether to expatriate? An enrolled agent? Serbinski?
I have often seen the $636,000 figure mentioned, but not the $2,000,000 figure. I'm not rich, but I own a house, and that really louses things up because it was bought when the Canadian dollar was low, so the US-calculated capital gain of a deemed disposition is high. As to whether the exclusion amount for selling a domicile mentioned in the form 1040 instructions applies to a person expatriating (renouncing citizenship), I don't know.
I will stubbornly fill out almost any tax form, but the 8854 is way too crucial. Who do potential expats hire to evaluate their situation in advance to help them decide whether to expatriate? An enrolled agent? Serbinski?
Hi Filo,
I don't know if the exclusion mentioned in the 1040 would be included. I didn't get any help with expatriation other than the internet and various forums. I also own a house but jointly. I was below the 2 million in assets as well as the 636,000 in capital gains. The forum that has been most useful is the Isaac Brock Society. It is a blog of a group of expat Americans, mostly Canadian dual citizens, that are renouncing or trying to figure out how to renounce. It's really helpful and probably someone there will have some good information. There is a section on the right hand side where you can ask a question. The forum is very active so you will get lots of feedback. I have read that Phil Hodgen's firm will do a phone consultation if you are comfortable with filling the forms yourself. I have no idea of the cost. Good luck.
http://isaacbrocksociety.com/
I don't know if the exclusion mentioned in the 1040 would be included. I didn't get any help with expatriation other than the internet and various forums. I also own a house but jointly. I was below the 2 million in assets as well as the 636,000 in capital gains. The forum that has been most useful is the Isaac Brock Society. It is a blog of a group of expat Americans, mostly Canadian dual citizens, that are renouncing or trying to figure out how to renounce. It's really helpful and probably someone there will have some good information. There is a section on the right hand side where you can ask a question. The forum is very active so you will get lots of feedback. I have read that Phil Hodgen's firm will do a phone consultation if you are comfortable with filling the forms yourself. I have no idea of the cost. Good luck.
http://isaacbrocksociety.com/
Netrover,
As far as i know, if she has signature authority on any of your accounts, then yes you must include these in your tabulation.
You also must consider her tax liability over the last 5 years...it think that as long as it is under 148k you are ok.
\So in summary, if her networth is 2 mil or greater with a tax liability of more than 148k over the last 5 years then you are a covered expat.
My advice would be to get her name off any and all of your accounts, (no signature authority) and make the calculation from there.
As far as i know, if she has signature authority on any of your accounts, then yes you must include these in your tabulation.
You also must consider her tax liability over the last 5 years...it think that as long as it is under 148k you are ok.
\So in summary, if her networth is 2 mil or greater with a tax liability of more than 148k over the last 5 years then you are a covered expat.
My advice would be to get her name off any and all of your accounts, (no signature authority) and make the calculation from there.