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|Subject: Re: Foreign Residence||Date: 3/7/1999 4:40 AM|
|Author: glhoss||Number: 8965 of 75637|
I have been living out of the US for 3 years now. To be able to trade (in or out of a IRA or brokerage account), all you have to do is have a mailing address in the states. By having a "MAILING ADDRESS" in the states your mutual fund companies or brokerages will not know the difference. As for US taxes, you will still have to claim all capital gains, but you will have to fill out a form 2555ez to get your $72,000 deduction for being out of the country. If you don't itemize then you will get the standard deduction on top of the foreign income allowance ($72,000 for 1998).
My income went over the 72,000 and I had a lot of capital gains for the year 1998. But after having H&R block do my taxes, ALL the gains and the overage was washed out and I did not owe anything to the IRS.
REMEMBER....to claim the foreign income allowance you must past the tests of being a out of country resident. (see form 2555ez for the questions). you must not be out of the US less than 330 days of a 12 month year (that does not necessarily mean Jan1 98 to Dec31 98.).
I hope this helps you.
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