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July 1, 2024

Expatriation – eligible vs ineligible compensation

Summary of the Exit Tax The exit tax is made up of three main components: Pensions and Retirement Schemes: These can be taxed either immediately upon expatriation or on a deferred basis. Nongrantor Trusts: Beneficiaries of these trusts will face a withholding tax on distributions that represent ordinary income. Other Assets: All other assets not […]

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Trusts and Expatriation

Exit Tax Overview The exit tax consists of primarily three distinct taxes.  Pension or Retirement Schemes: The value of one’s pension or retirement scheme is taxed either immediately upon expatriation or on a deferred basis.  Non-grantor Trusts: Distributions to an expatriate beneficiary from a non-grantor trust are subject to withholding tax on the portion of

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Section 121 – Principal Residence and the Exit Tax

Summary of the Exit Tax The exit tax is made up of three main components: Pension/Retirement Tax: The value of one’s pension or retirement scheme is taxable either immediately upon expatriation or on a deferred basis. Trust Distributions Tax: If the expatriate is a beneficiary of a ‘nongrantor’ trust, distributions to the beneficiary will be

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