Is it Time to Dump Your American Passport and Your US Tax Bill? The Yucatan Times
go to original November 18, 2013

Situated on the west coast of Mexico, Banderas Bay offers nearly 40 miles of incomparable coastline in the states of Jalisco and Nayarit. Banderas Bay is Mexico's largest natural bay and home to Puerto Vallarta's many great destinations. (PromoVision)

Time to dump your American passport — and with it, presumably, your bothersome U.S. tax bill.

The reason, international tax lawyers say, may have less to do with offshore tax evasion and more with a new generation of sophisticated — and legal — tax planning.

This year will enter the record books with the highest number of expatriations ever by U.S. citizens, according to new government figures released last week.

Some 560 Americans joined the exodus in the third quarter of this year, putting the total number so far this year at 2,369, according to Treasury Department data published by the Federal Register. That is already 33% more than the 1,781 who left in all of 2011, the previous record.

While the number of people who gave up their little blue books in the first six months of this year had already edged out the 2011 record by a hair, the recent figures firmly cement the trend.

Ditching a passport can save an American lots of money in taxes. The reason: The U.S., along with Eritrea, is one of only two countries in the world to tax its citizens on their worldwide income, regardless of where they live or work.

Read the rest at The Yucatan Times

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