Socialite, Songwriter Denise Rich Renounces U.S. Citizenship
“It may not be coincidental that some of these high profile expatriations are occurring when asset values have been relatively depressed,” said tax attorney Dean Berry of Cadwalader, Wickersham, & Taft LLP.
But Rich is not completely off the tax hook. According to expatriation tax legislation passed in June 2008, she is considered a covered expatriate and will therefore have to pay an exit tax on the net gain calculations of her assets. It is still far less than she would have paid as a U.S. citizen with a large estate, however, according to tax attorneys.
“Expatriation makes the most sense when asset values are historically low and tax rates are historically low. Her timing may have had something to do with that,” tax attorney David S. Miller of Cadwalader, Wickersham, & Taft LLP said.
In January, Rich put her Fifth Avenue Manhattan penthouse on the market, according to her real estate agency, Corcoran. The property, which boasts 20 rooms and 11 baths, is on sale for $65 million.
According to her spokeswoman, Rich renounced her citizenship because she wanted to live in London, where her long-time partner and her two daughters live.