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  • Surge in Americans Giving Up Citizenship, Reports Bambridge Accountants New York


    NEW YORK, March 7, 2025 (Newswire.com)
    –
    There has been a surge in Americans giving up citizenship, according to research by the international tax firm, Bambridge Accountants New York.

    • 4,819 Americans gave up their citizenship in 2024.

    • Showing a 48% increase on 2023, where only 3,260 cases were recorded.

    • There was a rush of 2,123 expatriations in the 3 months leading up to the election in November 2024 – the highest number reported for 4 and a half years.

    • The swell mirrors the same increase in expatriations when US President Donald Trump won the election in 2016.

    The U.S. Department of State estimates there are 9 million U.S. expats. Over the last 4 years there have been fairly constant levels of Americans renouncing – the three months leading up to the 2024 election has shown a significant increase in the number of Americans overseas giving up their citizenship.

    Every quarter, the U.S. Government publishes the names of all Americans who give up their citizenship, including Green Card holders who give back the Green Card after 8 or more years.

    Alistair Bambridge, partner at Bambridge Accountants New York, explains: “There has been a tremendous interest leading up to the election in 2024 and for the first few months of 2025 for Americans overseas looking to renounce their citizenship. While President Biden was in power, we were seeing less interest and the figures reported by the U.S. Treasury reflect this.

    “We speak to U.S. citizens on a daily basis who are looking to renounce their citizenship. There is an uptick in queries from Americans looking to give back their passport, the common thread is the political situation in the U.S.

    “U.S. citizens living overseas, are required to file U.S. tax returns each year, declaring worldwide income and report all their foreign bank accounts, investments and pensions held outside the U.S. For some Americans, it is not political and this financial reporting is too much, and they decide to renounce their citizenship as they have no plans to return to live in the U.S.

    “From our experience, of the queries we receive now, about 60% of Americans who want to give back their passport are politically motivated and the remaining 40% are for financial reasons. While President Biden was in office, the reason quoted for renouncing, 90% plus, was financial.

    Bambridge Accountants New York is a New York-based firm specializing in U.S. expat tax, U.K expats, foreign companies with U.S. reporting (1120-F).

    www.bambridgeaccountants.com

    Contact Information

    Alistair Bambridge
    Partner
    alistair@bambridgeaccountants.com

    Source: Bambridge Accountants New York

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  • How to report foreign income in Canada – MoneySense

    How to report foreign income in Canada – MoneySense

    This form is typically used for foreign bank accounts, foreign investment accounts or foreign rental properties, but it can include other foreign assets. Foreign investments, including U.S. stocks, must be reported even if they are held in Canadian investment accounts. Foreign personal-use properties, like a snowbird’s condo that is not earning rental income, may be exempt.

    Foreign asset disclosure applies to taxable investments, so assets held in tax-sheltered accounts like registered retirement savings plans (RRSPs), tax-free savings accounts (TFSAs), pensions and other non-taxable accounts are generally exempt.

    U.S. persons in Canada

    U.S. citizens or green card holders must generally file U.S. tax returns despite living in Canada. The United States is one of the few countries in the world that has this requirement for non-residents. As a result, you may have to report both Canadian and U.S. income, deductions, credits and foreign tax payable.

    Adding to the complexity is that certain types of income are taxable in one country but not the other, and some deductions or credits may only apply on one tax return.

    Voluntary disclosure for previous years

    If you have not reported foreign income or declared foreign assets in the past and you should have done so, you may be able to file a voluntary disclosure with the CRA. This program may allow relief on a case-by-case basis for taxpayers who contact the CRA to fix errors or omissions for past tax returns.

    There are five conditions to apply:

    1. You must submit your application voluntarily and before the CRA takes any enforcement action against you or a third party related to you.
    2. You must include all relevant information and documentation (including all returns, forms and schedules needed to correct the error or omission).
    3. Your information involves an application or potential application of a penalty.
    4. Your information is at least one year or one reporting period past due.
    5. You must include payment of the estimated tax owing, or request a payment arrangement (subject to CRA approval).

    Before pursuing a voluntary disclosure, you should seek professional advice. The CRA also offers a pre-disclosure discussion service that is informal and non-binding, and it does not require the disclosure of your identity.

    Bottom line

    When you are a Canadian tax resident, whether you are a citizen or not, you have worldwide income and asset disclosure requirements on your tax return. Some Canadian residents, despite living abroad, may still be considered factual residents or deemed residents of Canada with ongoing tax-filing requirements.

    Jason Heath, CFP

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  • Cross-border estate planning: What should Canadian parents with U.S. beneficiaries do? – MoneySense

    Cross-border estate planning: What should Canadian parents with U.S. beneficiaries do? – MoneySense

    The basics: U.S. estate tax for non-residents

    The U.S. imposes estate taxes on the worldwide estates of its citizens and residents. However, as a Canadian with no U.S. assets, you might initially assume that U.S. estate taxes do not apply to you. The catch here is that since your daughter is a U.S. permanent resident, her inheritance from your estate may generally not be taxable in the United States; however, there may be other tax and filing considerations to keep in mind. Let’s explore them together, Gail.

    U.S. estate tax thresholds and exemptions

    Currently, the U.S. federal estate tax exemption is quite high, sitting at $13.61 million per individual as of 2024. (All figures are in U.S. dollars.) This means that estates valued below this threshold are not subject to federal estate taxes. Assuming that your estate’s value is under $13.61 million, no federal estate tax would be due. For instance, if your Canadian estate is valued at $3 million, it is well below the $13.61-million U.S. federal estate tax exemption. Therefore, your daughter would not be liable for U.S. federal estate taxes on her inheritance.

    State estate taxes

    While the federal estate tax exemption is high, it’s important to consider that some U.S. states impose their own estate or inheritance taxes with lower exemption thresholds. The impact of these state taxes depends on where your daughter resides. As of 2024, the states of Washington, Oregon, Minnesota, Illinois, Maryland, Vermont, Connecticut, New York, Rhode Island, Massachusetts, Maine, Hawaii and the District of Columbia impose estate taxes. This means residents of these states might face both federal and state estate taxes, depending on the total value of the assets.

    Estate tax thresholds in these states range from $1 million in Oregon to $13.61 million in Connecticut, and tax rates vary. I would recommend that your daughter check her state’s website for specific details on potential estate taxes, Gail.

    Financial management and currency exchange

    Managing a cross-border inheritance often means dealing with multiple currencies. When preparing your estate plan, Gail, you will want to keep in mind some key points that your future executor will come across when distributing your estate to your daughter:

    • Currency exchange rates: Fluctuations in exchange rates can affect the value of the inheritance when converting from Canadian to U.S. dollars. For instance, if the Canadian dollar weakens against the U.S. dollar between the time of inheritance and the time of transfer, the value of the inheritance in U.S. dollars could decrease.
    • Banking and investments: Transferring funds and managing investments across borders may incur extra fees and require dealing with different financial institutions. For example, transferring funds from a Canadian brokerage account to a U.S. account might involve transaction fees, wire fees and foreign exchange fees.

    Cross-border legal challenges

    Handling a will with cross-border implications requires careful legal navigation. Key issues include:

    • Recognition of wills: Canadian wills are generally recognized in the U.S., but differences in probate laws can complicate the process. Legal advice in both countries is often necessary. For instance, if a beneficiary wants to sell an inherited Canadian property, they may need to follow both Canadian and U.S. legal procedures.
    • Asset transfer: Transferring assets like real estate or investments across borders may involve additional legal and regulatory steps. For example, transferring a Canadian investment account to a U.S. beneficiary might require navigating both Canadian banking regulations and U.S. tax reporting requirements.

    Practical steps for cross-border estate planning

    To ensure a smooth transfer of your estate to your U.S. resident daughter, Gail, consider the following practical steps:

    1. Consult with experts: Engage with a cross-border estate planning specialist who understands both Canadian and U.S. tax laws. These professionals have the expertise needed to navigate the complex rules and regulations involved in cross-border inheritances. They can help ensure that your estate plan minimizes taxes, avoids legal pitfalls, and complies with the laws in both countries, making the transfer of your assets as smooth as possible.
    2. Update your will: Make sure your will is current and clearly outlines your wishes. Specify exactly how you want your assets to be distributed, and think about any cross-border issues that might come up. This will help ensure that everything goes according to your plans when the time comes.
    3. Consider trusts: Establishing a trust can be a smart way to manage and transfer your assets. A trust is a legal arrangement where a trustee holds and manages your assets for the benefit of your chosen beneficiaries. By setting up a trust, you can ensure that your estate is managed efficiently, tax-effectively and according to your precise wishes. Consulting with a cross-border estate planning specialist can help you determine the best trust structure for your situation.
    4. Stay informed: Tax laws and regulations can change frequently, impacting how your estate is taxed and managed. To maintain the effectiveness of your estate plan, schedule regular reviews with a cross-border estate planning specialist. This proactive approach ensures that your plan remains up-to-date, legally compliant and optimized for tax efficiency, ultimately protecting your legacy and providing peace of mind.

    How to ensure a smooth transfer of your estate

    As you can see, Gail, cross-border estate planning for Canadian parents with U.S. resident children involves navigating complex tax regulations and potential pitfalls. While your estate may be valued under the federal threshold and might not face U.S. federal estate taxes, there are state taxes and other considerations that could impact its final value. By consulting with experts, updating your will, considering trusts and staying informed, you can ensure a smooth and tax-efficient transfer of your estate to your daughter.

    Debbie Stanley, TEP, MTI

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  • 2021 Monthly Recap – May – Dragos Roua

    Dec 22, 2021 Dec 3, 2025 2021-12-22

    May was my first month into a new country, so the move was roughly completed. I didn’t set base into a long term accommodation yet, I was still searching, the long term thing happened only in June, so May was more or less suspended. The course of events is still clear in my mind, because the dates were almost surgically aligned. On the first day of May I crossed into Portugal (like, literally, I came by train / bus), and it was also the first day without restrictions on the ground traffic. Surreal memories.

    By then, a lot of the past was already behind, I was eagerly starting to explore my new life. May was also the month in which most of the logistics that required my presence happened, like obtaining all the paperwork for residency and so on. I also walked more than in any previous month (Camino month excluded, obviously), and this happened on a much hillier terrain. If you ever visited Lisbon, you know what I mean. It’s one thing to walk 10 km per day on a flat terrain, and a completely different one to walk 10km on a level difference of 30 stories every day.

    May was also one of the most consistent months in terms of well defined, on topic, posts. Because I was right in the middle of the process, I wrote a lot about location independence, and also about the big changes that the world went through. For instance, the religious similarities between Covid-19 apostles and Bitcoin maximalists, or the realization that there are idiots at the both side of the spectrum. And, obviously, about the Berlin wall inside our minds, which is still unfolding these days.

    I also wrote about financial resilience, from introductory posts like how to become financially resilient in 3 steps (spoiler alert: there’s more than 3 steps, but you can still do it), up to financial resilience in 3 words.

    But probably the post that was most influenced by this time (and you’ll see by its title why) is Most The World Is Functioning At The Grape Level. A lot of good wine in Portugal.

    If I would have to put May in a single word, it would be: “renewed”. If I would have to put it in a sentence it would be: “learning to walk again, into a new space”.

    Photo by Glen Carrie on Unsplash

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    dragos@dragosroua.com (Dragos Roua)

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