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Ely
Ely, Lawyer
Category: US Law
Satisfied Customers: 102599
Experience:  Counselor at Law. Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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There. We lived in USA between 2005 and 2010. We have

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Hi there. We lived in USA between 2005 and 2010. We have returned back to the UK. I am a dual national and my wife holds a green card, which she now needs to give up - as it looks like we will be in UK for the long haul. We own a property in UK. Will she be liable for an exit tax noting she does not work?

Submitted: 2 years ago.
Category: US Law
Expert:  Ely replied 2 years ago.
Hello and welcome to JustAnswer. Please note:This is general information and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.Are you asking about "exit tax" in US or UK?This is not an answer, but an information request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.
Customer: replied 2 years ago.

We live in UK and own a UK home. I am a dual citizen, my wife only has a green card. Exit tax refers to US not UK. Hope this clarifies?

Expert:  Ely replied 2 years ago.
Thank you, ***** ***** There is no such thing as an "exit tax" in the USA either on a state or federal level. So no, she should not be subject to an exit tax. However, as a greencard holder, she may still be liable for federal taxes in general while she holds the greencard and perhaps even afterwards. See HERE.All the best.I hope this helps and clarifies. Gentle Reminder: Use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how I get credit for my time with you. Rating my answer the bottom two faces/stars or failing to submit the rating does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith.
Customer: replied 2 years ago.

Hi Ely. We do our UK and US tax returns every year anyway. Unfortunately since we now live in UK, we need to surrender her greencard as are unlikely to return to UK. As such just trying to understand whether she will have to pay an exit tax the same way I would have to if I gave up my citizenship ie will we be taxed on our UK home (primary residence) even though we have not sold it. Not sure if I am explaining my question well

Expert:  Ely replied 2 years ago.
Ah, thank you.No, USA does not have an exit tax. So the answer to your question is no, someone in your situation should not have to pay such a tax.However, she may be subject to expatriate tax. The tax applies to green-card holders who abandon U.S. residency after having held a green card for at least 8 of the last 15 tax years. This is not a "lump sum," but a formulated tax and only if she has held a greencard or 8 of the last 15 years. See HERE.Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.
Customer: replied 2 years ago.

Thanks Ely. Wow - you caught me out on that as I never even heard of this tax. Se has held a greencard since 2005 - so 10 years now. Since she does not work, since we only own half of our house (other half is mortgaged) and we are not worth USD 2 mio, and since we have filed tax returns for last 10 years, hope this will not be applicable to us.

Expert:  Ely replied 2 years ago.
It should not be - this is only for individuals who earn money abroad. So she should not be subject to that tax. So at least, there is that good news. And with no "exit tax" like the UK has, I hope that clarifies the issue.Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.
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