TED TRAITOR ("TRAITOR"), A U.S. CITIZEN, HAS ALWAYS BEEN GREEDY AND HAS WORKED HARD TO ACCUMULATE AS MUCH AS HE CAN. TRAITOR OWNS BONDS WITH AN AB OF $10 MILLION AND A FMV OF $35 MILLION. FROM 2017-2022, TRAITOR'S US TAX LIABLILITY AVERAGED $350,000. TRAITOR HAS READ THAT NRAS DO NOT PAY US INCOME TAX ON GAIN FROM THE SALE OF SECURITIES SO ON 8/21/23, TRAITOR RENOUNCES HIS US CITIZENSHIP (GIVES IT UP) AND TRAITOR TAKES UP RESIDENCE IN A TAX HAVEN COUNTRY THUS BECOMING AN NRA THEREAFTER. TRAITOR'S PLAN IS TO SELL MOST OF HIS BONDS 5 YEARS LATER AND TO THEN BUY A MANSION IN HIS NEW TAX HAVEN COUNTRY. FOR 2023 AND BASED ON THE ABOVE, TRAITOR WILL HAVE HOW MUCH GAIN SUBJECT TO US INCOME TAX?

Answer rating: 100% (QA)

US Tax Liability for Ted Traitor in 2023 While Ted Traitor plans to sell his bonds in 5 years he may ... View the full answer