The Elephant in the room: How should we prepare for the collapse of the US?

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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Hal » Fri Jul 10, 2020 6:28 am

Considering the OP's questions a bit more.....

A little thought experiment about a typical retirement account :)

From the ERE page about the PP https://wiki.earlyretirementextreme.com ... o#Variants

1. PP can be replicated by 25% Shares/25% Gold/50% Intermediate Bonds

401(k) lemonade
In such cases the lemonade modification to the PP could be used (as in "turn lemons into lemonade"). In theory, the cash and bond allocations, which are short- and long-term treasury bonds respectively, behave equivalently to intermediate term treasury bonds. So the cash and bond allocations could be merged into one large intermediate term treasury allocation:

25% stock
25% gold
50% intermediate Treasury bonds


2. OK, so now we have 25/25/50 allocation, but HB said the economy refers to "whatever economy the investor participates in"

Outside the US
The original books describing the PP were written by US authors for US audiences, so they described the PP assets in terms of US securities.

However, in a radio show (TODO: add reference), Browne explained that the economy referenced in the four-condition analysis is a variable which refers to whatever economy the investor participates in. For an American, economy means the US economy, while for a German, economy means the German economy, and so on.


3. What if we want to participate in "the developed world" economy? We get the Portfolio Charts screenshot

4. Interesting enough, the worst Ulcer Index of all the countries is about 10. Try plotting Ulcer Index against average return and change the country

5. Hals thought to himself... "I wonder if Hedged International Bonds would improve things?"
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by StinkyToes » Tue Jul 14, 2020 12:26 pm

sophie wrote:
Wed Jul 08, 2020 11:46 am
I think we will have plenty of warning if a wealth tax that could capture middle to upper middle class US citizens becomes a real danger. They'll start with ultra-high wealth individuals, then they will gradually ratchet down the threshold, just as happened with the AMT. I imagine that a low threshold e.g. $2M would be exceedingly difficult to get passed, so they won't start there. A number like $10M is about the minimum I'd expect.

I also don't think the U.S. will "collapse". If you define "collapse" you'll likely come up with a hyperinflation or severe deflation/depression scenario. The PP can handle both of those well enough - and certainly better than your standard stock/bond portfolio.
Respectfully, I doubt we will have much warning. My understanding is that the US already imposes a hefty tax on those who renounce their citizenship. Expect this tax to increase dramatically in the near future. By the time we see the train coming, it will likely be too late to get off the tracks.

When I say "collapse" I mean that the USA as we know it will probably cease to exist, like the Indus Valley civilization in 1300 BC, the Olmec civilization in 400 BC, the western Roman Empire in the Fifth Century AD, and the USSR in the late 1980s (and dozens of others). What will follow I have no idea. Perhaps some US territory will be annexed by other countries (e.g. Russia, Mexico, Canada). What remains will likely be governed more like a tin pot dictatorship than a liberal democracy.

I agree with you that the PP is far better than the standard stock/bond portfolio in such scenarios.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Hal » Tue Jul 14, 2020 1:42 pm

StinkyToes wrote:
Tue Jul 14, 2020 12:26 pm
When I say "collapse" I mean that the USA as we know it will probably cease to exist, like the Indus Valley civilization in 1300 BC, the Olmec civilization in 400 BC, the western Roman Empire in the Fifth Century AD, and the USSR in the late 1980s (and dozens of others). What will follow I have no idea. Perhaps some US territory will be annexed by other countries (e.g. Russia, Mexico, Canada). What remains will likely be governed more like a tin pot dictatorship than a liberal democracy.

I agree with you that the PP is far better than the standard stock/bond portfolio in such scenarios.
S/Toes,

A few things to consider if you think things are that dire...

From an extended family member who survived WW2 in Europe

1. You get your funds out before trouble. Gold is best for restarting your life after the war. Try to spend only local currency during the war where-ever you decide to go to. Have at least 2 locations to wait it out.

2. While waiting to leave, make sure you have heaps of stockpiled food. Many didn't and paid the ultimate price.

3. Get out early - he did not see his brothers/sisters again until the Berlin Wall came down, yes 45 years later. They hesitated and ended up trapped.

I sincerely hope your prediction is wrong.....

PS: 75th Anniversary of Wilhelm Gustloff - he lived on the Baltic Sea
https://www.youtube.com/watch?v=JIlcP1fW5I4
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Xan » Tue Jul 14, 2020 1:55 pm

Hal, can you explain what the heaps of food while waiting to leave are for? Are you in hiding in your own house before you leave?
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Hal » Tue Jul 14, 2020 2:06 pm

Xan wrote:
Tue Jul 14, 2020 1:55 pm
Hal, can you explain what the heaps of food while waiting to leave are for? Are you in hiding in your own house before you leave?
Hi Xan,
He was only 15 at the time, but his parents had stockpiled food illegaly while waiting for a chance to escape. He was in his parents house, and once the Soviets overrun the area decided to make an escape attempt to the allied occupied zone before they put the wall up.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by bitcoininthevp » Tue Jul 14, 2020 2:13 pm

For what its worth, from Craigs PP book:

Image
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Xan » Tue Jul 14, 2020 2:31 pm

Hal wrote:
Tue Jul 14, 2020 2:06 pm
Xan wrote:
Tue Jul 14, 2020 1:55 pm
Hal, can you explain what the heaps of food while waiting to leave are for? Are you in hiding in your own house before you leave?
Hi Xan,
He was only 15 at the time, but his parents had stockpiled food illegaly while waiting for a chance to escape. He was in his parents house, and once the Soviets overrun the area decided to make an escape attempt to the allied occupied zone before they put the wall up.
Wow. It's hard to imagine what that must have been like. Turned out they played everything perfectly, but how dangerous must all that have been.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by pp4me » Tue Jul 14, 2020 2:49 pm

StinkyToes wrote:
Tue Jul 14, 2020 12:26 pm
sophie wrote:
Wed Jul 08, 2020 11:46 am
I think we will have plenty of warning if a wealth tax that could capture middle to upper middle class US citizens becomes a real danger. They'll start with ultra-high wealth individuals, then they will gradually ratchet down the threshold, just as happened with the AMT. I imagine that a low threshold e.g. $2M would be exceedingly difficult to get passed, so they won't start there. A number like $10M is about the minimum I'd expect.

I also don't think the U.S. will "collapse". If you define "collapse" you'll likely come up with a hyperinflation or severe deflation/depression scenario. The PP can handle both of those well enough - and certainly better than your standard stock/bond portfolio.
Respectfully, I doubt we will have much warning. My understanding is that the US already imposes a hefty tax on those who renounce their citizenship. Expect this tax to increase dramatically in the near future. By the time we see the train coming, it will likely be too late to get off the tracks.

When I say "collapse" I mean that the USA as we know it will probably cease to exist, like the Indus Valley civilization in 1300 BC, the Olmec civilization in 400 BC, the western Roman Empire in the Fifth Century AD, and the USSR in the late 1980s (and dozens of others). What will follow I have no idea. Perhaps some US territory will be annexed by other countries (e.g. Russia, Mexico, Canada). What remains will likely be governed more like a tin pot dictatorship than a liberal democracy.

I agree with you that the PP is far better than the standard stock/bond portfolio in such scenarios.
My understanding of the exit tax if you want to renounce your citizenship is that you have to liquidate your entire portfolio and pay normal capital gains on your taxable assets and the normal individual rates on your IRA. Things may have changed since I looked into it but I'm not aware of any additional taxes for a private individual. That could be a pretty hefty tax any way, especially withdrawing your entire IRA. The taxable part, at least for me, is all all long-term so only 15% right now.

And then, pray tell, what do you do with all of that money to create a PP in foreign investments?

I'm considering living overseas but I doubt that I will ever renounce my citizenship. Seems like too much of a hassle and I need to keep all my options open. Dual citizenship is a possibility.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by StinkyToes » Tue Jul 14, 2020 5:18 pm

pp4me wrote:
Tue Jul 14, 2020 2:49 pm
StinkyToes wrote:
Tue Jul 14, 2020 12:26 pm
sophie wrote:
Wed Jul 08, 2020 11:46 am
I think we will have plenty of warning if a wealth tax that could capture middle to upper middle class US citizens becomes a real danger. They'll start with ultra-high wealth individuals, then they will gradually ratchet down the threshold, just as happened with the AMT. I imagine that a low threshold e.g. $2M would be exceedingly difficult to get passed, so they won't start there. A number like $10M is about the minimum I'd expect.

I also don't think the U.S. will "collapse". If you define "collapse" you'll likely come up with a hyperinflation or severe deflation/depression scenario. The PP can handle both of those well enough - and certainly better than your standard stock/bond portfolio.
Respectfully, I doubt we will have much warning. My understanding is that the US already imposes a hefty tax on those who renounce their citizenship. Expect this tax to increase dramatically in the near future. By the time we see the train coming, it will likely be too late to get off the tracks.

When I say "collapse" I mean that the USA as we know it will probably cease to exist, like the Indus Valley civilization in 1300 BC, the Olmec civilization in 400 BC, the western Roman Empire in the Fifth Century AD, and the USSR in the late 1980s (and dozens of others). What will follow I have no idea. Perhaps some US territory will be annexed by other countries (e.g. Russia, Mexico, Canada). What remains will likely be governed more like a tin pot dictatorship than a liberal democracy.

I agree with you that the PP is far better than the standard stock/bond portfolio in such scenarios.
My understanding of the exit tax if you want to renounce your citizenship is that you have to liquidate your entire portfolio and pay normal capital gains on your taxable assets and the normal individual rates on your IRA. Things may have changed since I looked into it but I'm not aware of any additional taxes for a private individual. That could be a pretty hefty tax any way, especially withdrawing your entire IRA. The taxable part, at least for me, is all all long-term so only 15% right now.

And then, pray tell, what do you do with all of that money to create a PP in foreign investments?

I'm considering living overseas but I doubt that I will ever renounce my citizenship. Seems like too much of a hassle and I need to keep all my options open. Dual citizenship is a possibility.

Any idea what are the tax implications of dual citizenship? Would you still be subject to U.S. income taxes?
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by StinkyToes » Tue Jul 14, 2020 6:36 pm

Study finds reparations plan could cost $6.2 quadrillion
https://news.yahoo.com/study-finds-repa ... 37453.html

I believe that's $6,200,000,000,000,000, or $151 million per descendant.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Mark Leavy » Tue Jul 14, 2020 7:39 pm

StinkyToes wrote:
Tue Jul 14, 2020 5:18 pm
Any idea what are the tax implications of dual citizenship? Would you still be subject to U.S. income taxes?
Yes, still subject to US income taxes.

There are some subtle exceptions, though. If you are out of country for more than X months, then Y% of your income, which is earned out of country, is not subject to Federal tax.

In my case, my legal residence is in a USA state with no income tax. But virtually all of my income is from US companies or interest, dividends or capital gains from US companies. So... I suck it up and pay US taxes no matter where I live. Because, honestly, a US passport is the bomb. I can't imagine giving it up.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by pp4me » Wed Jul 15, 2020 10:42 am

StinkyToes wrote:
Tue Jul 14, 2020 5:18 pm
pp4me wrote:
Tue Jul 14, 2020 2:49 pm
StinkyToes wrote:
Tue Jul 14, 2020 12:26 pm
sophie wrote:
Wed Jul 08, 2020 11:46 am
I think we will have plenty of warning if a wealth tax that could capture middle to upper middle class US citizens becomes a real danger. They'll start with ultra-high wealth individuals, then they will gradually ratchet down the threshold, just as happened with the AMT. I imagine that a low threshold e.g. $2M would be exceedingly difficult to get passed, so they won't start there. A number like $10M is about the minimum I'd expect.

I also don't think the U.S. will "collapse". If you define "collapse" you'll likely come up with a hyperinflation or severe deflation/depression scenario. The PP can handle both of those well enough - and certainly better than your standard stock/bond portfolio.
Respectfully, I doubt we will have much warning. My understanding is that the US already imposes a hefty tax on those who renounce their citizenship. Expect this tax to increase dramatically in the near future. By the time we see the train coming, it will likely be too late to get off the tracks.

When I say "collapse" I mean that the USA as we know it will probably cease to exist, like the Indus Valley civilization in 1300 BC, the Olmec civilization in 400 BC, the western Roman Empire in the Fifth Century AD, and the USSR in the late 1980s (and dozens of others). What will follow I have no idea. Perhaps some US territory will be annexed by other countries (e.g. Russia, Mexico, Canada). What remains will likely be governed more like a tin pot dictatorship than a liberal democracy.

I agree with you that the PP is far better than the standard stock/bond portfolio in such scenarios.
My understanding of the exit tax if you want to renounce your citizenship is that you have to liquidate your entire portfolio and pay normal capital gains on your taxable assets and the normal individual rates on your IRA. Things may have changed since I looked into it but I'm not aware of any additional taxes for a private individual. That could be a pretty hefty tax any way, especially withdrawing your entire IRA. The taxable part, at least for me, is all all long-term so only 15% right now.

And then, pray tell, what do you do with all of that money to create a PP in foreign investments?

I'm considering living overseas but I doubt that I will ever renounce my citizenship. Seems like too much of a hassle and I need to keep all my options open. Dual citizenship is a possibility.

Any idea what are the tax implications of dual citizenship? Would you still be subject to U.S. income taxes?
Yes, if you retain your U.S. citizenship you are subject to taxation on ALL income no matter where it is earned. A lot of countries have reciprocal agreements with the U.S. to avoid double taxation so obviously you want to pick out one of those.

In my case all my income is from SS and U.S. investments so it is going to be reported to the IRS no matter what I do. Hiding other income overseas isn't that hard to do however. I have a brother in law who has been living in the Philippines for over 10 years, earning money from buying and selling property and he has never even filed with the IRS in all that time. Probably not a good idea if you plan on returning.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by sophie » Thu Jul 16, 2020 11:34 am

Actually for my post I was thinking of less drastic ways to avoid the tax than renouncing US citizenship. Keep in mind that you don't need to hide ALL your money, just enough of it to get you below threshold.

There are plenty of options. One available to us PP'ers is easy: buy physical gold and make sure the transactions aren't reportable.

If your primary residence is excluded from the wealth tax then you can simply pay down the mortgage. i.e. the same tactic that seniors use to avoid missing out on Medicaid benefits. There are also options like putting money or assets into a trust.

The biggest problem is going to be small business owners, whose ownership stake will count as wealth. I'm no accountant, but I would think that problem could be solved by incorporating the business.

All these maneuvers will cost money and provide lots of work for accountants, but at least be aware that the wealth tax isn't necessarily going to be a doomsday scenario.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by jalanlong » Sun Jul 19, 2020 9:24 pm

https://www.zerohedge.com/personal-fina ... fair-share

This was posted today. It covers some of same topics on this thread.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Xan » Sun Jul 19, 2020 10:50 pm

jalanlong wrote:
Sun Jul 19, 2020 9:24 pm
https://www.zerohedge.com/personal-fina ... fair-share

This was posted today. It covers some of same topics on this thread.
How does everyone think that the Perth Mint fits with the recommendations?
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Hal » Sun Jul 19, 2020 11:58 pm

Xan wrote:
Sun Jul 19, 2020 10:50 pm
jalanlong wrote:
Sun Jul 19, 2020 9:24 pm
https://www.zerohedge.com/personal-fina ... fair-share

This was posted today. It covers some of same topics on this thread.
How does everyone think that the Perth Mint fits with the recommendations?
https://www.adamseconomics.com/post/wil ... -your-gold

That said, I keep Gold there. Any country can enact such laws.
Probably more important is this interview with Marin Katusa on storage locations.

https://www.youtube.com/watch?v=dJGUhWq7Efk
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Libertarian666 » Mon Jul 20, 2020 7:59 am

sophie wrote:
Thu Jul 16, 2020 11:34 am
Actually for my post I was thinking of less drastic ways to avoid the tax than renouncing US citizenship. Keep in mind that you don't need to hide ALL your money, just enough of it to get you below threshold.

There are plenty of options. One available to us PP'ers is easy: buy physical gold and make sure the transactions aren't reportable.

If your primary residence is excluded from the wealth tax then you can simply pay down the mortgage. i.e. the same tactic that seniors use to avoid missing out on Medicaid benefits. There are also options like putting money or assets into a trust.

The biggest problem is going to be small business owners, whose ownership stake will count as wealth. I'm no accountant, but I would think that problem could be solved by incorporating the business.

All these maneuvers will cost money and provide lots of work for accountants, but at least be aware that the wealth tax isn't necessarily going to be a doomsday scenario.
I don't think any of those options will keep you safe if you're still in the US when the balloon goes up.
The second passport is the cornerstone of any serious plan to avoid being caught in the collapse.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Libertarian666 » Mon Jul 20, 2020 8:04 am

Mark Leavy wrote:
Tue Jul 14, 2020 7:39 pm
StinkyToes wrote:
Tue Jul 14, 2020 5:18 pm
Any idea what are the tax implications of dual citizenship? Would you still be subject to U.S. income taxes?
Yes, still subject to US income taxes.

There are some subtle exceptions, though. If you are out of country for more than X months, then Y% of your income, which is earned out of country, is not subject to Federal tax.

In my case, my legal residence is in a USA state with no income tax. But virtually all of my income is from US companies or interest, dividends or capital gains from US companies. So... I suck it up and pay US taxes no matter where I live. Because, honestly, a US passport is the bomb. I can't imagine giving it up.
I imagine the same was true of the German passport before the 1930's.

Anyway, no one here is claiming that you need to give up US citizenship at the moment; you can maintain dual citizenship with most other countries without much difficulty.

It's when the disaster actually occurs that you really need that second passport, but of course it will be too late to acquire it then.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Mark Leavy » Mon Jul 20, 2020 8:17 am

Libertarian666 wrote:
Mon Jul 20, 2020 8:04 am
Mark Leavy wrote:
Tue Jul 14, 2020 7:39 pm
StinkyToes wrote:
Tue Jul 14, 2020 5:18 pm
Any idea what are the tax implications of dual citizenship? Would you still be subject to U.S. income taxes?
Yes, still subject to US income taxes.

There are some subtle exceptions, though. If you are out of country for more than X months, then Y% of your income, which is earned out of country, is not subject to Federal tax.

In my case, my legal residence is in a USA state with no income tax. But virtually all of my income is from US companies or interest, dividends or capital gains from US companies. So... I suck it up and pay US taxes no matter where I live. Because, honestly, a US passport is the bomb. I can't imagine giving it up.
I imagine the same was true of the German passport before the 1930's.

Anyway, no one here is claiming that you need to give up US citizenship at the moment; you can maintain dual citizenship with most other countries without much difficulty.

It's when the disaster actually occurs that you really need that second passport, but of course it will be too late to acquire it then.
No argument there. I fully understand how valuable a second passport would be. Even without a US meltdown, I'd love to have one today. It's a risk/reward tradeoff. The only path I personally have today would involve spending a lot more money or time than I care to give up right now. But, at some point, I might just shell out the cash for a Bulgarian passport or buy a Golden Visa from Portugal. But that is a lot of cash...
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by pp4me » Mon Jul 20, 2020 10:57 am

pp4me wrote:
Wed Jul 15, 2020 10:42 am
I have a brother in law who has been living in the Philippines for over 10 years, earning money from buying and selling property and he has never even filed with the IRS in all that time. Probably not a good idea if you plan on returning.
Just to follow up on my own post I have to say I consider my brother-in-law's manner of expatriation to be exactly NOT the way to do it. He is now basically country-less. In the Philippines he's an illegal immigrant and will have to pay a hefty fine to exit the country. His U.S. passport also expired long ago and I have no idea how hard it will be to get it renewed after living in a foreign country for 10 years and not even filing U.S. income tax (which I believe you are required to do if you live overseas no matter how much money you make).

We visited the family last year and I got the sense they are now regretting the situation they have gotten themselves into.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by anato » Mon Jul 20, 2020 12:14 pm

pp4me wrote:
Mon Jul 20, 2020 10:57 am
not even filing U.S. income tax (which I believe you are required to do if you live overseas no matter how much money you make).
I wouldn't bet my house on it, but I vaguely remember that if you make less than 90k$ a year, and are living abroad, you're not required to file.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Mark Leavy » Mon Jul 20, 2020 12:35 pm

anato wrote:
Mon Jul 20, 2020 12:14 pm
pp4me wrote:
Mon Jul 20, 2020 10:57 am
not even filing U.S. income tax (which I believe you are required to do if you live overseas no matter how much money you make).
I wouldn't bet my house on it, but I vaguely remember that if you make less than 90k$ a year, and are living abroad, you're not required to file.
You have to be out of the country for more than 10 months and the income has to be earned outside of the USA and you have to file for the exemption.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by Libertarian666 » Mon Jul 20, 2020 5:26 pm

Mark Leavy wrote:
Mon Jul 20, 2020 8:17 am
Libertarian666 wrote:
Mon Jul 20, 2020 8:04 am
Mark Leavy wrote:
Tue Jul 14, 2020 7:39 pm
StinkyToes wrote:
Tue Jul 14, 2020 5:18 pm
Any idea what are the tax implications of dual citizenship? Would you still be subject to U.S. income taxes?
Yes, still subject to US income taxes.

There are some subtle exceptions, though. If you are out of country for more than X months, then Y% of your income, which is earned out of country, is not subject to Federal tax.

In my case, my legal residence is in a USA state with no income tax. But virtually all of my income is from US companies or interest, dividends or capital gains from US companies. So... I suck it up and pay US taxes no matter where I live. Because, honestly, a US passport is the bomb. I can't imagine giving it up.
I imagine the same was true of the German passport before the 1930's.

Anyway, no one here is claiming that you need to give up US citizenship at the moment; you can maintain dual citizenship with most other countries without much difficulty.

It's when the disaster actually occurs that you really need that second passport, but of course it will be too late to acquire it then.
No argument there. I fully understand how valuable a second passport would be. Even without a US meltdown, I'd love to have one today. It's a risk/reward tradeoff. The only path I personally have today would involve spending a lot more money or time than I care to give up right now. But, at some point, I might just shell out the cash for a Bulgarian passport or buy a Golden Visa from Portugal. But that is a lot of cash...
Well, the Portugal visa doesn't give you a second passport, at least not until you get citizenship, which is offered after 6 years.
If you are just looking for permanent residency in another country, Uruguay is probably the best bet, at least according to my research a decade ago. At that time they didn't put many roadblocks in the way of permanent residency, and permanent residents get a cedula that allows travel among and within several South American countries.
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by glennds » Thu Jul 30, 2020 12:33 pm

Mark Leavy wrote:
Tue Jul 14, 2020 7:39 pm
StinkyToes wrote:
Tue Jul 14, 2020 5:18 pm
Any idea what are the tax implications of dual citizenship? Would you still be subject to U.S. income taxes?
Yes, still subject to US income taxes.

There are some subtle exceptions, though. If you are out of country for more than X months, then Y% of your income, which is earned out of country, is not subject to Federal tax.

In my case, my legal residence is in a USA state with no income tax. But virtually all of my income is from US companies or interest, dividends or capital gains from US companies. So... I suck it up and pay US taxes no matter where I live. Because, honestly, a US passport is the bomb. I can't imagine giving it up.
The answer can also depend on whether the non-US country of citizenship (or legal residence) has a tax treaty with the US and what the provisions of that treaty are. You can find the tax treaties on the IRS website. I think there are like 75 or more of them and I don't think any two are alike so the provisions can be highly unique.
Most of the time the treaty is providing some relief or exemption from double taxation on income or gain earned in the non-US country. It gets complicated enough, that I think it may be worth having a professional preparer with experience in this area looking over your shoulder. Ignorance is not a defense if you inadvertently trip a wire that prompts an auditor to allege that you were using the other country to evade or avoid US taxes.
pp4me
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Re: The Elephant in the room: How should we prepare for the collapse of the US?

Post by pp4me » Fri Jul 31, 2020 8:24 am

Fred Reed is less than optimistic about the future.....

https://www.unz.com/freed/its-gonna-blo ... f-it-dont/
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