Hello....trying to muddle my way through form 8854 and I think as long as i understand some definitions i might be able to pull it off.
On part IV section A line 6 it asks;
Were you under age 181/2 on the date you expatriated and have you been a U.S. resident for not more than 10 years?
Ok...so in this context do they mean expatriated as not lived in the Unite States...or expatriated as in "I just relinquished my citizenship" today.
In my case I was only born in the USA...have lived in Canada all of my life and never lived in the states....
Just making sure i answer the question correctly, but I would think in my case the answer here would be "YES" (?)
8854 definition of expatriated
Moderator: Mark T Serbinski CA CPA
Testone...on the same part IV I am trying to navigate questons 3 and 4
3. Did you become at birth a U.S. citizen and a citizen of another country, and do you continue to be a citizen of, and taxed as a resident of, that other country? ...
my interpretation here is....i was born in the US...moved to Canada as an infant and was classified as a 'Landed Immigrant", therefore i did not automatically become a 'citizen' of another country. However...i have always been taxed as a resident of Canada and am now a full fledged Canadian citizen. It seems to me that the first part of the question....(in my case) is NO and the second part of the question is YES.
It continues to question 4;
If you answered “Yes†to question 3, have you been a resident of the United States for not more than 10 of the last 15 tax years? .
So...is this asking me if I have been a resident of the US for less than 10 years? I have never been a resident of the United States, so would one answer this as NO?
Maybe I am not the sharpest tool in the drawer...but I am finding these questions a bit of a brain teaser.
3. Did you become at birth a U.S. citizen and a citizen of another country, and do you continue to be a citizen of, and taxed as a resident of, that other country? ...
my interpretation here is....i was born in the US...moved to Canada as an infant and was classified as a 'Landed Immigrant", therefore i did not automatically become a 'citizen' of another country. However...i have always been taxed as a resident of Canada and am now a full fledged Canadian citizen. It seems to me that the first part of the question....(in my case) is NO and the second part of the question is YES.
It continues to question 4;
If you answered “Yes†to question 3, have you been a resident of the United States for not more than 10 of the last 15 tax years? .
So...is this asking me if I have been a resident of the US for less than 10 years? I have never been a resident of the United States, so would one answer this as NO?
Maybe I am not the sharpest tool in the drawer...but I am finding these questions a bit of a brain teaser.
So...having determined the definition of 'and' and 'or', on section B where it says;
Do not complete Section B if:
• Your average net income tax liability for the 5 tax years immediately before expatriation (see line 1 in Section A) was not more than $147,000, your net worth (see line 2 in Section A) was under $2 million, and you checked “Yes†on line 6 in Section A;
• In Section A, you checked “Yes†on lines 3, 4, and 6; or
• In Section A, you checked “Yes†on lines 5 and 6.
Can i assume from the above text i would not have to fill out section B because I have satisfied the first bullet point?
I am assuming the second and third bullet points follow the 'or' logic?
Do not complete Section B if:
• Your average net income tax liability for the 5 tax years immediately before expatriation (see line 1 in Section A) was not more than $147,000, your net worth (see line 2 in Section A) was under $2 million, and you checked “Yes†on line 6 in Section A;
• In Section A, you checked “Yes†on lines 3, 4, and 6; or
• In Section A, you checked “Yes†on lines 5 and 6.
Can i assume from the above text i would not have to fill out section B because I have satisfied the first bullet point?
I am assuming the second and third bullet points follow the 'or' logic?