Correct. If you are "rich" ($2 million net worth or $157k average tax bill over the previous five years) then you pretend you sold everything. The first $680k of gain is tax free but you pay tax on everything above that. Bad things happen to your retirement plans and IRAs.
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When you give up your citizenship, don't you owe the IRS capital gains tax on all assets you own, as if you had liquidated them? (iirc)
Correct. If you are "rich" ($2 million net worth or $157k average tax bill over the previous five years) then you pretend you sold everything. The first $680k of gain is tax free but you pay tax on everything above that. Bad things happen to your retirement plans and IRAs.
What happens to your retirement plans? Treated as if you withdrew all of them that year?