IF foreign assets are more than 50000$ what are the consequences?

[curiousv]

What are the consequences if foreign assets are more than 50000$ of US citizen and these funds are invested in mutual funds.

I understand 50000$ and 75000$ threshold but if assets are worth above threshold ...what are the consequences?

I also understand if these assets /mutual funds are generating income we have to pay taxes on that income but
what about assets itself...?

if a US citizen wants to give up US citizenship ...do they have to pay of these assets values to US govt?

[realgoogler]

You have to file FBAR (foreign aggregate financial assets at any point in the year was greater than 10K and pay taxes on income per PFIC rules for Mutual funds.

[curiousv]

You have to file FBAR (foreign aggregate financial assets at any point in the year was greater than 10K and pay taxes on income per PFIC rules for Mutual funds.

I understand about FBAR and taxes but are there any other consequences?

I am mostly worried about exit tax because the person who is currently US citizen ..might want to give up citizenship

[realgoogler]

I understand about FBAR and taxes but are there any other consequences?

I am mostly worried about exit tax because the person who is currently US citizen ..might want to give up citizenship

I suggest you retitle your thread to be specific about what you want.

[Desi]

I understand about FBAR and taxes but are there any other consequences?

I am mostly worried about exit tax because the person who is currently US citizen ..might want to give up citizenship

https://www.irs.gov/individuals/international-taxpayers/expatriation-tax

[greyfri]

Foreign assets have nothing to do with exit tax. All assets are counted for exit tax (not just foreign assets) , and the limits are far higher than 50K

However, if
1) You have foreign financial assets > 50K AND
2) are single (or MFS) AND
3) are a US Resident

You have to file form 8938 with your tax return

https://www.irs.gov/pub/irs-pdf/i8938.pdf

Different thresholds apply if you are resident outside the US and/or MFJ