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Author: mrlumu One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121432  
Subject: Foreign Income Exclusion & Investing Date: 2/23/2001 10:01 AM
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I am overseas and will expect to met the requirements for the foreign income exclusion. I am wondering since that income is excluded what are the implications of investing that in overseas investments. Would the gains/losses then be also exempt or would they be considered for US taxes even though they were made completely with exempt funds?
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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 47033 of 121432
Subject: Re: Foreign Income Exclusion & Investing Date: 2/23/2001 10:50 AM
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I am overseas and will expect to met the requirements for the foreign income exclusion. I am wondering since that income is excluded what are the implications of investing that in overseas investments. Would the gains/losses then be also exempt or would they be considered for US taxes even though they were made completely with exempt funds?

In general, all income, other than that specifically excluded, is subject to US taxation. It doesn't matter where the funds originally came from. Of course, with expatriate issues, there may be specific tax treaties which override the general rules.

Ira

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Author: kse4 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 47075 of 121432
Subject: Re: Foreign Income Exclusion & Investing Date: 2/23/2001 10:24 PM
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The only income eligible for the exclusion (and/or the housing deduction) is earned income. Dividend/interest, capital gains, etc. are all taxable, whether from US or overseas investments. Your advantage re: unearned income is, your tax bracket starts at the bottom.

kse4

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