The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Renouncing citizenship for tax purposes||Date: 8/23/2013 12:42 PM|
|Author: JAFO31||Number: 119069 of 123001|
saunafool: "The U.S. laws actually make it worse. Americans cannot have investment accounts overseas. Or, they can, but the only two things which are accepted investments are cash and U.S. Treasuries.
. . .
If American law makes it impossible for me to extract the money without paying punitive taxes (i.e. 70% when you add the European income tax plus the U.S. tax) and they make it impossible for me to invest locally--because all of my retirement expenses will be in Euros, I would have to consider renouncing citizenship."
I am neither a tax pro nor af ormer expatriate, but neither statement above sounds correct to me. And with regard to the latter statement, the US gives a credt for foreign taxes paid.
"You may claim the Foreign Tax Credit for taxes paid in a foreign country. However, you may not claim a tax credit for taxes paid on any income which has been exc