cross-border

Becoming A U.S. Citizen Or Not

In general, a Green Card holder becomes eligible for naturalization once he/she, at least 18 years old, has lived in the U.S. continuously for at least five years as a permanent resident. You could learn more about the Naturalization eligibility requirements and process from U.S. Citizenship and Immigration Services (USCIS) here. This week, I want to share with you a couple of things you should consider when deciding whether to become a U.S. citizen or not.

PFIC: Why You Probably Do Not Want To Invest Funds Outside The U.S.

There are so many great companies and investment opportunities outside the U.S. If you read the article I shared on my blog before, you would know that I am a big fan of global investment. However, when it comes down to selecting investment companies and vehicles, you probably do not want to choose the ones organized outside the U.S. Without considering any potential country-specific currency risk, inflation risk, political risk, or liquidity risk, the most significant hurdle that the U.S. investors are facing is the punitive federal income tax treatment imposed by the IRS.

For those who currently have investment accounts in other countries, you could check out my previous blog here to figure out whether you need to report it and how to report it to the government.

This week, I will help you get some basic understandings of what investments are subject to the punitive income tax treatment, how bad the tax treatment is, and what you could do to make it less bad. 

Watch Out The Exit Tax Before Giving Up Your U.S. Citizenship Or Green card

Are you a green card holder planning to go back to your home country? Are you a U.S. citizen planning to retire in a foreign country? Are you a dual-citizen who do not want to be subject to worldwide taxation anymore? If you are considering giving up your U.S. citizenship or green card, think twice before you pull the trigger. Before you do so, you should be aware of many things and plan ahead. This week, I will cover one of them - the expatriation tax (more commonly known as the exit tax).