The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Investing from offshore accounts Date:  11/24/1998  9:39 AM
Author:  TMFTaxes Number:  6469 of 127753

[[I have the opposite problem. I'm a non-US citizen who would like to invest though an inexpensive
US discount brokerage. I wouldn't get taxed on my capital gains and the IRS would withhold only
30% of my dividend and interest income.]]

Or perhaps even less. Remember that the 30% rate is the "default" rate. Depending upon your home country, and the tax treaty that your home country has with the US, your rate could be less. If you would like to check that out, you can read IRS Publication 901 at the IRS web site. That publication will tell you what the specific tax treaty issues are with respect to your home country.

And remember also that you must be a non-citizen AND non-resident in order to receive this "benefit". If you are a "resident alien", you would also have to pay taxes on worldwide income...just like any other US taxpayer. So make sure that you KNOW what you status actually is. IRS Publication 519 can help you with that.

[[ As I understand it, my problem is the US policy of only exempting $60,000 from US inheritance
taxes. American citizens and legal aliens get to exempt $600,000. If I died suddenly, my kids
would loose a lot of $$$.]]

But, again, this will only impact you if you are a US resident. If you are a non-citizen and non-resident, the potential estate tax pounding will not apply to you. So you really need to define your "status" with Uncle Sammy in one quick hurry. You may be under some assumptions that may not necessarily be true.

TMF Taxes

Want to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. There is still time available to do that tax planning (and tax saving) before the end of the year. So just click on this link ( to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on and you'll be right at the home page. Pay special attention to the "archives" section. Check it out. Finally, if you need to get to the IRS web site, click on to go directly there.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us