Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121431  
Subject: Re: whose tax is it anyway? Date: 9/5/2000 8:32 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
<<I am about to take the plunge from offshore mutuals into the Dow Jones,
but am concerned about taxation. I hope my questions aren't that foolish!>>

Ok...let's see what we might be able to help you with.

<<question 1;

What tax, if any, would a Brit living in Japan hoping to buy and sell
American shares be liable to? Is capital gains tax deducted at source
automatically?>>

Generally speaking, no. Since you are neither a US citizen nor a US resident, you'll generally only be liable for US taxes on interest and dividends paid to you by the US companies. Generally speaking, your capital gains would not be subject to US taxes.

BUT...all of that being said, the tax treaty between the US and England is complex, so you might find that your situation could be a bit different. In order to understand the differences, I would certainly suggest that you drift on over to the IRS web site and read IRS Publications 519 and 901 dealing with tax issues of non-resident aliens and the various US tax treaties.

<<question 2;

Leading on from question 1, if captial gains tax is deductable from any
profit of sales, is it advisable to chop and change ones portfolio, such
as the foolish four every year, for example?>>

That would depend upon the tax rate that you would be assessed (if any) and the returns of other investments that might be available to you.

Again, check out the IRS Publications for MUCH MORE information on this issue.

TMF Taxes
Roy

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Saul's Investing Discussions

Why Did I Buy a Bunch of PFIE Today?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement