On December 20th, 2018 Congress member George Holding of North Carolina introduced the Tax Fairness for Americans Abroad Act of 2018 bill into the House. This announcement garnered the attention of many US citizen taxpayers abroad for obvious reasons.
The introduced bill outlines an alternative taxation regime for US citizens living abroad. In simple terms the bill introduces the following measures:
- the bill would allow US citizens to be taxed based on a residency established system.
- for those considered “non-resident citizen” current worldwide reporting and taxation to the US government would not be required (assuming proper elections are filed)
- US Citizens would continued to be taxed on certain US source income
- US Citizens would be taxed on any sale of property or capital property during the time they were considered “resident Citizen of the US”
- In order to be considered a qualify “non-resident citizen” the taxpayer would need to be fully compliant for tax purposes during the last 3 years.
Recent Comments