[Truckeebo]

Hi,
I have been an American citizen for 10 yrs, but before I moved over from Europe, I had stock funds in the country I come from. I kept my funds in my old country to be retirement money for me. Now since the US is pretty aggressive about having stocks in other countries I'm thinking about to sell what I have in Europe, transfer the money to USA and by stocks here instead. I have reported all my funds to the tax government so they are aware of them. My question is: Since I bought these investments before I moved to USA, do I have to pay tax if I sell and transfer the money to an American investment company?

[AtlantaTaxExpert]

Yes, you must report the capital gains from the stock sales on your U.S. return. You can claim the Foreign Tax Credit for taxes paid to the host country.

Further, if the balance of the value of the stocks exceed $10,000, you must the FBAR (Foreign Bank Account Report).

Finally, if the stock value exceeds $50,000, you have to submit Form 8938 with your 2011 tax return. This is a new requirement under FATCA.

If you need professional help, email me at the email address in my profile if you cannot see it below.

[Truckeebo]

Yes, you must report the capital gains from the stock sales on your U.S. return. You can claim the Foreign Tax Credit for taxes paid to the host country.

Further, if the balance of the value of the stocks exceed $10,000, you must the FBAR (Foreign Bank Account Report).

Finally, if the stock value exceeds $50,000, you have to submit Form 8938 with your 2011 tax return. This is a new requirement under FATCA.

If you need professional help, email me at the email address in my profile if you cannot see it below.

What if I keep them in Europe and don't sell? Do I still have to pay tax for them? I have heard that I can bring in $10.000 / yr tax free. Is that right?

[AtlantaTaxExpert]

If you retain the stocks, you can transfer them to a U.S. brokerage account tax-free (U.S. has no transfer taxes).

[Truckeebo]

If you retain the stocks, you can transfer them to a U.S. brokerage account tax-free (U.S. has no transfer taxes).

Does that work for mutual funds too?

[AtlantaTaxExpert]

Yes, if you can find a U.S. brokerage house that will accept the mutual funds.

[alejandro007]

Hi ,I have a question, I trade in the U.S stock market and I have made a little profit in it basically I buy and sell the stocks the same day , I am 19 years old and I am from central america I am not a U.S. citizen , so do I have to pay taxes?

[AtlantaTaxExpert]

Not unless you sepnt some time in the United States in 2012.

However, if you did NOT complete Form W-8BEN and send it to your brokerage firm to show that you are exempt from taxation, they probably withheld 20-30% for taxes, which requires you file Form 1040NR and claim the tax exempt status to get a refund of that withholding.

If you need professional help filing your return come January, email me at the email address in my profile (if you cannot see it below).

[alejandro007]

Thank you very much Sir!

[AtlantaTaxExpert]

Glad to help!

[FritzChang]

With FATCA, it might be a good idea to avoid using investments overseas.

I found these two articles related to American expats very useful.


Why Americans Should Never, Ever Own Shares in a Non-US Incorporated Mutual Fund

FATCA (Foreign Account Tax Compliance Act): What American Investors Need to Know Now

There are some other good articles on that American expat financial advisor's website.