serious tax question

B

blackguard

Im an ex-pat living in an Asian country. Next year im getting married here so I will have dual citizenship- America and here. If I continue to trade, are my capital gains exempt from US taxation if I never return to the US?

Thanks 4 helping.
 
Not an expert, but as long as you are a US citizen I believe you owe US taxes. I think in your case you can give up your US citizenship and not owe any taxes since your getting married to a foreign national and taking citizenship in your spouse's country of citizenship.
 
You need to consult an international tax law expert. The general rule, as I understand it, is that the worldwide income of a U.S. citizen is taxable by the U.S. regardless of the citizen's residence. That rule is modified by tax treaties, and there is also an $80k exclusion for "foreign earned income"--but that applies only to earned income, and capital gain from trading is not earned income. So the bottom line is you need expert advice. The U.S. embassy in your country of residence can probably give you the basic answers and may be able to direct you to someone who is qualified to give you a more detailed analysis.
 
You will probably remain taxable in the US.

US citizens and resident aliens (e.g., greencard holders) are taxed on their worldwide income.

If you are resident in a treaty country and have closer ties there (economic and personal nexus) than in the US, that country probably will have primary taxing jurisdiction over your income.

In the US, a foreign tax credit mechanism exists to mitigation double taxation of your income. This type of credit is available in some other countries.

Take care,

Hannah Terhune JD, LLM (Taxation)
 
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