there are some very nice threads in ET started by Cutten on this topic. Bottom line is : you cannot avoid uncle sam permanently or cheaply. The easy solution is to surrender your citizenship before you make too much money and punitive action might be taken against you when you do.
Actually the rules are a bit different... Yes, the $80,000 exclusion is for US citizens residing in a foreign country for 330+ days per year BUT the exemption is on their EARNED income from sources within a foreign country. (not on their trading gains or investment earnings).
"Legitimate" being the key word. Generally (for what I presume is the typical reader here) there are far and few between "legitimate" offshore structures that the IRS's Passive Foreign Investment Company (PFIC) rules will not pierce.
Can we get clarification on this one? Are you saying that if I reside outside of the US, I dont have to pay any capital gains taxes? Does this have to be in an account with my foreign address or can it be a US based account? Thanks
If you are a US citizen or perm resident, you pay tax on all gains on demostic or foreighn period. Only way out is surrender your citizenship.
Hi All, I have been told several times that the IRS will also tax trading profits on US accounts of non-resident, non US-citizens, if such persons happen to reside in a country NOT HAVING A TAX TREATY with the US. Can anybody give some more information on this?