News 24 Jun. 2021
Curtis successfully defends foreign states' procedural privileges in the UK Supreme Court
News 23 Jun. 2021
Ibrahim Elsadig joins Curtis as Partner in Dubai
News 09 Aug. 2021
Curtis, Mallet-Prevost, Colt & Mosle enters into association with Chevalier Law in Singapore.
Event 23 Apr. 2021
Partner Borzu Sabahi to speak on Damages, Enforcement and Annulment of Arbitral Awards at Executive Training Program hosted by the Government of India and the Indian Institute of Foreign Trade
Client Alert 13 Oct. 2021
Green Claims Code: How the UK Competition and Markets Authority is saying “enough” to corporate greenwashing
Event 21 Sep. 2021
Partner Simon Batifort Lectures on the Defense of States in Investment Arbitration at Université Paris Nanterre
News 15 Oct. 2021
Claudia Frutos-Peterson and Elisa Botero Ranked Among the Top 100 Female Lawyers in Latin America by Latinvex
News 13 Oct. 2021
Curtis Joins The Appellate Project to Promote Appellate Practice to Diverse Law Students
News 20 Sep. 2021
Curtis Successfully Defends the Sultanate of Oman and Oman Aluminium Rolling Company LLC in U.S. Department of Commerce Trade Case
News 16 Aug. 2021
Curtis Establishes Presence in Saudi Arabia
Client Alert 05 Oct. 2021
Proposed Legislative Changes to Federal Estate, Gift and Trust Taxation
Publications 22 Sep. 2021
Client Alert 24 Jun. 2021
U.S. Insight: Update on Virtual Notarization (Executive Order 202.7) During the COVID-19 (Coronavirus) Pandemic (Updated: June 24, 2021)
U.S. Insight: Update on Virtual Witnessing (New York Executive Order 202.14) During The COVID-19 (Coronavirus) Pandemic (Updated: June 24, 2021)
Publications June 2008
Exit Tax on U.S. Expatriates
On June 6, 2008 Congress sent legislation to President Bush which will impose an exit tax on certain individuals who expatriate or give up their green card ('covered expatriates' as defined below). The new legislation would generally treat a covered expatriate as having sold his or her global property at its fair market value on the day before expatriation and require that the tax on such deemed sale be paid on any gain from such deemed sale promptly, unless the covered expatriate makes an election to defer the tax on the gain until such property is disposed and posts security for the amount of any liability not paid promptly. In addition, U.S. citizens or residents who receive gifts or bequests from a covered expatriate will be subject to U.S. gift or estate tax on the property they receive. The legislation becomes effective when the President signs the bill, an event that is expected to occur during the week of June 16.
Under current tax law, a U.S. citizen who expatriates and a long-term resident (i.e., green card holder) who terminates his or her status as a long-term resident (together 'expatriates') is, subject to certain requirements and exceptions, required to report and pay tax on U.S. source income for ten taxable years following his or her expatriation or relinquishment of his or her status as a long-term U.S. resident.
Current law and the new legislation applies to any individual who (i) has a net worth of $2 million or more; (ii) has an average net U.S. income tax liability of greater than $124,000 (adjusted for inflation as of calendar year 2004); or (iii) fails to certify under penalty of perjury that he has complied with all U.S. federal tax obligations for the preceding five years (a 'covered expatriate').
Key Changes under the Legislation
Mark-to-Market Tax on Expatriates
i. Certain deferred compensation items; ii. Certain tax deferred accounts; iii. or Certain interests in a non-grantor trust.
i. Certain deferred compensation items;
ii. Certain tax deferred accounts;
iii. or Certain interests in a non-grantor trust.
Gifts and Bequests from Expatriates
Repeal of 10-year reporting and taxing requirements: