The exit tax, covered expatriate tests, Form 8854, the tax on gifts and bequests from covered expatriates, and the tax side of renouncing Canadian citizenship.
5 guides, each written by a CPA licensed in the US and Canada.
Giving up a green card triggers US exit tax only if you held it in 8 of the last 15 taxable years and you're a covered expatriate. I-407 timing can decide it.
Cross-BorderForm 708 is the IRS return that implements IRC Section 2801, a tax on gifts and bequests received by US persons from covered expatriates.
Cross-BorderThe US imposes a specific exit tax on covered expatriates (mark-to-market deemed sale under IRC 877A, with a $866,000 exclusion for 2023).
Cross-BorderCatch up on US filings first, then renounce. Form 8854's five-year certification makes you a covered expatriate at any net worth, and Canada taxes you the same after.
Cross-BorderThe exit tax hits only covered expatriates: $2 million net worth, a $211,000 tax test for 2026, or no 5-year certification. How the deemed sale works and Form 8854.