by Nick Marr 
U.S. Representative Darin LaHood introduced a bill that could fundamentally change how U.S. citizens living overseas are taxed. The proposal seeks to shift from the current citizenship-based taxation system to one based on residency. This would mean that Americans residing abroad would no longer be taxed on their foreign-source income by the U.S. government, provided they meet certain conditions.
Read the full report on KPMG’s GMS Flash Alert.
Key Aspects of the Proposal:
- Tax Treatment Shift: Eligible U.S. citizens living abroad could be classified as non-residents for tax purposes, exempting their foreign earnings from U.S. taxation.
- Exit Tax Considerations: Those opting into the new system may need to pay a one-time tax on unrealized capital gains accumulated before their status change.
- Preventing Misuse: Safeguards are included to ensure only genuine expatriates benefit, requiring a defined period of established residency in another country.
Reactions and Implications
The bill has sparked discussions among tax professionals and expatriate communities. Supporters believe it would ease financial and administrative burdens, promoting greater economic mobility. On the other hand, critics raise concerns about possible tax revenue losses and the complexity of enforcing such a transition.
As the bill progresses through Congress, U.S. citizens living abroad should stay informed, as its passage could significantly impact their tax obligations.
DOWNLOAD REPORT HERE
U.S. Foreclosure Market: Challenges and Opportunities
While taxation policies are a key concern for expatriates, the U.S. real estate market is also presenting significant challenges—particularly with rising foreclosures. As interest rates remain high and economic uncertainty continues, foreclosure rates have been increasing across various states.
Recent reports indicate that foreclosure filings—default notices, scheduled auctions, and bank repossessions—have surged in major metropolitan areas, presenting both risks and opportunities for investors. Cities like Houston, Miami, and Los Angeles have seen a notable rise in distressed properties entering the market.
For international buyers and real estate investors, U.S. foreclosures present a unique opportunity to acquire properties at below-market prices. Whether for personal use, rental income, or flipping, purchasing a foreclosed home can be a strategic investment.
To explore available foreclosure listings, visit HomesGoFast.com’s Foreclosure Homes for Sale.
Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or tax advice. Individuals should consult with a professional for guidance on their specific situation.
