DO I HAVE TO PAY CAPITAL GAINS TAXES ON INTERNATIONAL INVESTMENTS IF I LIVE IN THE US?

I am formulation upon creation a little investments outward the nation (stock marketplace investments). Can I entrance the increase whilst vital in the US or will I have to compensate collateral gains taxes upon it? If so, how most will I have to compensate contend for $10,000 in profits?

{ 3 comments… read them below or add one }

Spock (rhp) October 31, 2010 at 10:10 pm

all Americans are subject to capital gains taxes on all their gains, no matter where the gain occurs.

so, yes — you will have to pay.

15% long term capital gains tax is the current rate.
you may get a credit for taxes paid to the other country; for example, Canada taxes the gains foreigners make in Canada at 15%, the the net effect is that an American pays the higher of the US or Canadian rate.

dizzy d October 31, 2010 at 10:32 pm

just follow the instructions of your income tax forms. If the stock was sold in the tax year, you will probably report the gain or loss on Schedule D.

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