Denise Rich Renounces U.S. Citizenship

[theworldismine13]

Socialite Denise Rich dumps U.S. passport | Reuters

(Reuters) - Denise Rich, the wealthy socialite and former wife of pardoned billionaire trader Marc Rich, has given up her U.S. citizenship - and, with it, much of her U.S. tax bill.

Rich, 68, a Grammy-nominated songwriter and glossy figure in Democratic and European royalty circles, renounced her American passport in November, according to her lawyer.

Her maiden name, Denise Eisenberg, appeared in the Federal Register on April 30 in a quarterly list of Americans who renounced their U.S. citizenship and permanent residents who handed in their green cards. (link.reuters.com/naq28s)

By dumping her U.S. passport, Rich likely will save tens of millions of dollars or more in U.S. taxes over the long haul, tax lawyers say.

Rich, who wrote songs recorded by Aretha Franklin, Mary J. Blige and Jessica Simpson, is the latest bold-faced name to join a wave of wealthy people renouncing their American citizenship. Facebook co-founder Eduardo Saverin gave up his U.S. passport to become a citizen of Singapore, an offshore tax haven, before the company's initial public offering in May.

Nearly 1,800 citizens and permanent residents, a record since data was first compiled in 1998, expatriated last year, according to government figures.

Rich, who was born in Worcester, Massachusetts, has Austrian citizenship through her deceased father, said Michael Heidt, a lawyer in Hollywood, Florida, who represented her in a recent lawsuit.

He said Rich had dumped her U.S. passport "so that she can be closer to her family and to Peter Cervinka, her long-time partner." Rich's two daughters live in London; Cervinka, a wealthy property developer, is an Austrian national. Rich plans to make London her main residence and does not intend to acquire other passports, Heidt said.

MARC RICH's PARDON

Rich's ex-husband, commodities trader Marc Rich, fled the United States in 1983 when indicted on charges of tax evasion, fraud, racketeering and illegal trading of oil with Iran. They divorced in 1996.

Marc Rich received a presidential pardon in 2001 on President Bill Clinton's last day in office. Federal prosecutors and Congress investigated the pardon, and in 2002 a House of Representatives committee concluded Denise Rich had swayed the action through donations to the Clinton library and campaign.

Dubbed "Lady Gatsby" by Yachting magazine, Rich owns multiple properties, including a mansion in Aspen, Colorado. She is a frequent habitue of Cannes, Monte Carlo and St. Tropez with celebrities and singers aboard her 157-foot yacht, Lady Joy.

Rich will escape future U.S. taxes but possibly not all current ones. In 2008, Congress imposed an expatriation tax on persons with a net worth of more than $2 million who dump their U.S. citizenship or permanent residency. Under the law, those people owe an "exit tax" on their worldwide property, computed at a fair market value the day before they leave. But tax lawyers say the tax can be reduced or avoided by structuring asset holdings through foreign annuities.

While Austria, like the United States, generally taxes its citizens on their worldwide income, it has generous tax breaks for citizens who spend half the year abroad.

In January, Rich put her 5th Avenue penthouse in New York on the market for $65 million, according to the listing agent, The Corcoran Group. New York property records show Rich acquired a 100 percent stake in the apartment, described by Corcoran as "the epitome of luxury and grandeur," for $200,000 in 2006. Bonnie Evans, the Corcoran broker for the property, declined to discuss details.

COOK ISLANDS TRUST

The recent lawsuit against Rich was filed on behalf of Lee Goldberg, the former protector of a Cook Islands trust of which Rich is a beneficiary, in February. The case was dismissed in April, court records show.

The Cook Islands, a South Pacific tax haven, offers Swiss-style secrecy for wealthy investors.

The lawsuit accused Rich and Richard Kilstock, a British real estate entrepreneur who is married to Rich's daughter Daniella, of "transferring, moving or secreting trust assets, in violation of the trust's guidelines and without the knowledge or permission of Goldberg."

Rich and Kilstock denied the charges and accused Goldberg of altering trust documents, court filings show.

Both Goldberg and his attorney, Donald Thomas, declined to discuss the case. Rich recently dismissed Goldberg, one of her long-time lawyers, as protector of the trust.

Heidt, who also represents Kilstock in the case, declined to discuss the lawsuit. Kilstock did not return calls requesting comment.

 

[Amare's Right Hook]

It's good to be rich, you get to talk out of your ass.

 

[SquirtleSwag]

If I was rich I would lampin' like capone in europe, buy a few castles and just fukk bad european bytches all god damn day.

 

[RadaMillz]

I am not rich by any stretch but in the past I have thought about renouncing my citizenship as well but my family talked me out of it.

 

[theworldismine13]

I am not rich by any stretch but in the past I have thought about renouncing my citizenship as well but my family talked me out of it.

you should have gone through with it

 

[RadaMillz]

you should have gone through with it

I was underage and didn't have much money but I figured I could start a new life somewhere in third world country by learning a trade and making a humble living off it. Being born and raised in America unfortunately has reduced my surviving skills to absolutely zero compared to people around the world learning from experiences.

 

[blackzeus]

I was underage and didn't have much money but I figured I could start a new life somewhere in third world country by learning a trade and making a humble living off it. Being born and raised in America unfortunately has reduced my surviving skills to absolutely zero compared to people around the world learning from experiences.

Daps for your train of thought. However, never renounce American citizenship unless you're rich. Even now, being an American citizen is still like winning the lottery. The only countries with better passports are the UK and Japan (UK is GOAT)

 

[RadaMillz]

Daps for your train of thought. However, never renounce American citizenship unless you're rich. Even now, being an American citizen is still like winning the lottery. The only countries with better passports are the UK and Japan (UK is GOAT)

Now that I am an adult, I have actually realized how precious the U.S passport is. There are people around the world who would kill for it, during my trip to djibouti a while back them nyggas were looking at like it was gold, on my transit to dubia, them aayrabz looked at me all puzzled like "how did u get an american passport" cus they only see white people come through with the same shyt LOL.

 

[Blackking]

Now that I am an adult, I have actually realized how precious the U.S passport is. There are people around the world who would kill for it, during my trip to djibouti a while back them nyggas were looking at like it was gold, on my transit to dubia, them aayrabz looked at me all puzzled like "how did u get an american passport" cus they only see white people come through with the same shyt LOL.

damn... I never knew this. And I've been to a few places...

 

[TheArchitect]

So like, what are the pros and cons of renouncing your citizenship? I thought about it since I ultimately want to leave the states for good (I wanna do something like dude above posted)....

 

[theworldismine13]

So like, what are the pros and cons of renouncing your citizenship? I thought about it since I ultimately want to leave the states for good (I wanna do something like dude above posted)....

if you are are us citizen you have to pay taxes no matter where you are in the globe, that is why rich people do it, that is the only real pro to it

the cons, as stated above is that you will gets no respect when you travel unless you replace your american citizenship with citizenship of an economically powerful country, in other words you could end up like shyne

 

[Aizen]

Interesting thread. In a few years, I might be out of the US so much that the idea of renouncing citizenship will become something I need to think about. This is never an easy decision and is quite anxiety inducing. Best of luck to any person who even has to consider such a move.

 

[TheArchitect]

if you are are us citizen you have to pay taxes no matter where you are in the globe, that is why rich people do it, that is the only real pro to it

the cons, as stated above is that you will gets no respect when you travel unless you replace your american citizenship with citizenship of an economically powerful country, in other words you could end up like shyne

Hmmm, I see...so, suppose you wind marrying a citizen of one of those said countries (powerful country); would it be better to do it in that case?

 

[Domingo Halliburton]

Where did you guys find this year old thread?

 

[theworldismine13]

Hmmm, I see...so, suppose you wind marrying a citizen of one of those said countries (powerful country); would it be better to do it in that case?

better for what? for taxes, maybe, if that other country has lower tax rates or all your money is in tax havens

but the us government doesnt care if you are a citizen of another country, so if you marry somebody and become a citizen then just do it and become a dual citizen, then you will have 2 passports

i dont see any advantage for renouncing citizenship aside from taxes unless you have some emotional/political reasons