The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Minimise Capital Gains Tax for Non-Resident||Date: 2/19/1999 12:15 AM|
|Author: TMFTaxes||Number: 10525 of 122300|
[[I have been living, working and paying tax etc in the UK for many years now
although I am a US Citizen. I have purchased a large number of US Equities
over the last couple of years and would like to sell them this year to purchase a
boat in the US. If I do this within the UK I will be liable to 40% capital gains tax
bill, on all sales over a nominal amount. I believe - after reading your article
today - that this would be greatly reduced, if I moved back to the US and
became a resident tax-paying Citizen.]]
The problem is, as a US citizen, you are liable for tax on your WORLD WIDE income...regardless of where it was earned. So you should have been an ongoing taxpaying citizen all along. If you haven't been...and haven't been filing a return for the past number of years, Uncle Sammy will have a LOT of questions for you when you DO decide to file. He'll want to know a BUNCH of information about your earnings from the past...and why a tax return wasn't filed. I hope that you have a very good answer.
So until you get this matter cleared up, selling the stocks is the least of your worries. Make sure to get some advice from a tax professional who can help you with these issues. That would be my best suggestion.
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