Broker in Illinois but living out of the country,which do I pay capital gains tax on?

C

cml2949

sorry if this is a repost, but I didn't see this question in the threads..

if I use a broker in Illinois , but live outside of the country, which capital gains tax do I pay? Illinois or outside country?

also, am I correct to believe that with state and federal capital gains tax in Illinois is about 30%?
 
how are you suppose to profit when you get taxed 30% from state and federal combined..

that's not including the comis and fees you pay the brokers..

Make a $1000.00 you automatically lose $300.00 to taxes and than whatever your comis and fees are..

On top of that they combine your total capital gains with any ordinary income you have and than you get taxed at an even higher bracket!
 
Quote from cml2949:

sorry if this is a repost, but I didn't see this question in the threads..

if I use a broker in Illinois , but live outside of the country, which capital gains tax do I pay? Illinois or outside country?

also, am I correct to believe that with state and federal capital gains tax in Illinois is about 30%?
More...
it depends on where your official residence is not where your broker is.
 
Let's dream here with the most perfect senerio..

You make 200k a yr ..

So you buy a house in Alaska, where there is no capital gains tax..
Have a house with family in Illinois .. (otherwise you'd live in Alaska!ha)

And each yr you profit an extra 60k

which pay for the house in a few years..
 
Quote from cml2949:

Let's dream here with the most perfect senerio..

You make 200k a yr ..

So you buy a house in Alaska, where there is no capital gains tax..
Have a house with family in Illinois .. (otherwise you'd live in Alaska!ha)

And each yr you profit an extra 60k

which pay for the house in a few years..
More...

Alaska is still the U.S. but I understand the point you're making.

Here's my recommendation considering I have residence in two different countries outside of the U.S. while being a U.S. citizen.

Find yourself a good tax accountant either in the U.S. or in the country you live in and have him explain any "tax treaties" the U.S. may have with the country you're living in.

Next, consult with the U.S. tax folks to confirm anything your tax accountant has stated to you.

The few hundred dollars you'll spend using a good tax accountant is well worth it and will prevent a lot of headach or worst your first year or so while living abroad.

My point, even if you use anonymous folks at a discussion forum for crucial tax advice...always use a certified tax accountant for verification and still let the certified tax accountant do your taxes at least the first few years while living abroad.

Mark
 
Oh yes, I definitely agree with you. This forum shouldn't be the final stop for questions and answers.

You did make a good point about the tax treaties.

Although, places like Hong Kong or Switzerland has no capital gains tax, it may only pertain to corporations not individuals trading their own accounts or U.S citizens living there.. Also, the twist may be it's taxed as ordinary income.. And in the U.S depending on your bracket there can be no difference between 35% ordinary income tax or 30% capital gains tax!

I do appreciate your recommendation .. A lot of info you have to double check with .. U.S tax folks, you referring to the IRS?

Quote from wrbtrader:

Alaska is still the U.S. but I understand the point you're making.

Here's my recommendation considering I have residence in two different countries outside of the U.S. while being a U.S. citizen.

Find yourself a good tax accountant either in the U.S. or in the country you live in and have him explain any "tax treaties" the U.S. may have with the country you're living in.

Next, consult with the U.S. tax folks to confirm anything your tax accountant has stated to you.

The few hundred dollars you'll spend using a good tax accountant is well worth it and will prevent a lot of headach or worst your first year or so while living abroad.

My point, even if you use anonymous folks at a discussion forum for crucial tax advice...always use a certified tax accountant for verification and still let the certified tax accountant do your taxes at least the first few years while living abroad.

Mark
More...
 
You must log in or register to reply here.
Back
Top