Thinking of Becoming an Expat? Watch Out for the Exit Tax

The following is a guest blog post by Jacob Stein, a partner with Klueger & Stein, LLP in Los Angeles. Mr. Stein practices international taxation and structures cross-border business transactions.

An increasing number of Americans are opting for an expatriate life. In fact, as MSN reports, more Americans than ever have renounced their U.S. citizenship in the first quarter of 2015. Moving abroad and getting a new citizenship may cut off the U.S. government’s ability to recover taxes from the expat because the U.S. will no longer have personal ju­risdiction over that person. That’s where the “exit tax” comes into play—the expa­triation rules of the Internal Revenue Code seek to extract a tax while the U.S. still has jurisdiction. Continue reading

New 529A Accounts for Severely Disabled Individuals

153833909Many are familiar with section 529 college savings accounts, from which tax-free distributions must be used for qualified higher education expenses. The “Achieving a Better Life Experience Act of 2014” or the “ABLE Act of 2014” adds a similar account under IRC §529A that individuals who become severely disabled before age 26 may establish to use for “qualified disability expenses,” which can include education, housing, and transportation. Continue reading

Opening a Law Practice? Pay Attention to Tax Issues

460413025You’ve decided to open your own law office and are ready for your clients’ cases, but are you also ready to handle the tax issues that go hand-in-hand with running your own business? Continue reading

Tales of Hoffman: Postmortem Planning for Actor’s Estate

2013-07-catastrophe-122552905The tragic death of actor Philip Seymour Hoffman has given us an opportunity to consider his estate planning, with lessons and strategies for the rest of us. Continue reading

Litigators: Be Alert for Tax Issues

466026551Many litigators are grateful to believe they’ve left tax law behind in law school. But that belief can cost your client. Continue reading

The Net, Net Gift That Keeps on Giving (But It’s Risky)


Good news, bad news. The Tax Court has approved a gift tax avoidance scheme, but there’s a catch. Continue reading

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