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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 121428  
Subject: Re: Can you avoid taxes by living abroad? Date: 4/14/1998 12:41 AM
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[[Nope. My dad is NOT a US citizen, he is a Spanish citizen living in Colombia. How does it work
for him in this case?

I'm not a US citizen either, but I do work and reside in the US.]]

Generally, for non-citizens and non-residents, they will pay a flat 30% tax (or lower treaty rate...withheld at the source) on interest and dividends. But, generally, capital gains will not be subject to US taxes.

His situation may be different from yours, since you may be a resident. As a resident alien, you are generally required to pay taxes on all worldwide income in the same manner and fashion as a US citizen.

For additional information on these issues, check out IRS Publications 519 and 901.

TMF Taxes
Roy

SPECIAL NOTE: I try to answer as many questions as I can each week, and I generally select those that have not been asked before. If you don't get a detailed answer to your question, it is probably because my time is so limited during tax season, or because it has already been asked and answered in this folder in the past, or because it has been discussed in the Taxes Frequently Asked Questions area. In order to visit the Taxes FAQ area, go to the Fool's School area (http://www.fool.com/school.htm) and check out "Other Features" in the list box, OR you can jump directly to the Taxes FAQ area (http://www.fool.com/school/taxes/taxes.htm). Additionally, if any references were made to the IRS Web Site, you can get there by pointing your web browser to (http://www.irs.ustreas.gov)
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