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I have a query on how U.S authorities (IRS) collect capital gains Tax on foreign investors at what rates are applicable to us aliens.
Can I claim a credit if I declare foreign income in Oz?

Davo
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>I have a query on how U.S authorities (IRS)'
> collect .capital gains Tax on foreign investors at
>what rates are applicable to us aliens.
>Can I claim a credit if I declare foreign income in
> Oz?

>Davo

Thanks Davo. This is exactly my question. I just opened an account with Suretrade.com, and we have to submit a W8 form or we are charged 30% on both dividents and all sales!!! Does this match anyone's experience? But after submitting the W8 form and 1001? form, I really don't know what to expect - will we have to pay more than 30% or less? It is absurd to pay so much for every share sale!

Can anyone (1) inform us about how capital gains works for us in Australia when using a service like Suretrade or Firsttrade, and (2) how we can avoid paying capital gains tax.

Regards
Julian
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This is how I understand it, correct me if I'm wrong:

As long as you keep the money overseas you don't pay any taxes, if you filed the W8 and 1001. It is up to you to declare the profit when you transfer the cash back home. I did get an inquiry from the tax office (in NZ) when I made the transfer to the US, so they are keeping track of internation transfers.
eveline
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>As long as you keep the money overseas you don't pay
>any taxes, if you filed the W8 and 1001. It is up to
>you to declare the profit when you transfer the cash
>back home. I did get an inquiry from the tax office
>(in NZ) when I made the transfer to the US, so they
>are keeping track of internation transfers.
>eveline

Interesting. How much information did they want to know?

I just contacted Suretrade, and one guy said that without submitting the W8 and 1001 forms, I am taxed 30% on dividends, but I am NOT tax on capital gains. But another guy from the same company said that the IRA in US take out 30% of EVERY sale!! Now that is ridiculous, and I really need to have the facts verified before I buy into US industry stocks.

Does anyone have experience with buying and selling US industry stocks from Australia, through a US on-line broker such as Suretrade or Firstrade?

Thanks
Julian


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