Overseas shares and US IRS


O

' or ''='

Hi,
Almost 10 years ago I sold an overseas property and invested the money in
the stock market in that same country. Given the high rate of the euro I
consider selling those shares and wire the money to my bank account in the
US. How will the IRS interpret this money? Will I pay taxes on the full
amount or only on the interest?
Thanks for your help!
 
P

parrisbraeside

Hi,
Almost 10 years ago I sold an overseas property and invested the money in
the stock market in that same country. Given the high rate of the euro I
consider selling those shares and wire the money to my bank account in the
US. How will the IRS interpret this money? Will I pay taxes on the full
amount or only on the interest?
Thanks for your help!
You will have a long-term capital gain on your tax return (Schedule D)
which will show the date acquired. You will have a Form TD F 90-22.1
and Schedule B Part III completed showing the funds flowed through the
foreign bank account on sale while moving to you moved it to your US
Bank Account.

Yes, there will be an initial surprise but money moves and you
declared everything on your taxes, right?
 
Ad

Advertisements

P

Paul Thomas, CPA

' or ''=' said:
Almost 10 years ago I sold an overseas property and invested the money in
the stock market in that same country. Given the high rate of the euro I
consider selling those shares and wire the money to my bank account in the
US. How will the IRS interpret this money? Will I pay taxes on the full
amount or only on the interest?


I trust you have been reporting any dividends those investments paid out in
the past years......

The sale will create a gain on the sale, reportable and taxable on your US
returns - use Schedule D.
 
I

info

I trust you have been reporting any dividends those investments paid out in
the past years......
Nothing has been paid out. It was an investment in a high risk Stock
Market plan. Six months later the value of the whole investment was
cut in half. It's not nearly as high as it was when I started. It
doesn't pay dividends. I get a yearly statement of how well or bad
it's doing, but I don't see a penny unless I sell those shares again.
 
I

info

You will have a long-term capital gain on your tax return (Schedule D)
which will show the date acquired. You will have a Form TD F 90-22.1
and Schedule B Part III completed showing the funds flowed through the
foreign bank account on sale while moving to you moved it to your US
Bank Account.
Yes, there will be an initial surprise but money moves and you
declared everything on your taxes, right?
I didn't declare anything. How can you declare something you don't
have. It's declared overseas yes, but not in the US. I haven't done
anything yet but would love to now. It would add 45% and bring it
back to its original value.
What do you mean by an initial surprise?
 
P

Phil Marti

I didn't declare anything. How can you declare something you don't
have.
IIRC the cash for this purchase came from a sale of overseas property. That
sale should have been reported on your US return, with the gain or loss
calculated on Schedule D. Since the investment has generated no current
income while you're owned it, there hasn't been anything to report since
then.

When you sell you'll report the sale and gain/loss on your US Schedule D.
IIRC that will be a loss.

The currency reporting is a separate information reporting requirement that
has no effect on your taxes.

BTW, we've all assumed throughout that you're a US citizen or resident
alien.
 
Ad

Advertisements

O

' or ''='

IIRC the cash for this purchase came from a sale of overseas property.
That
sale should have been reported on your US return, with the gain or loss
calculated on Schedule D. Since the investment has generated no current
income while you're owned it, there hasn't been anything to report since
then.

When you sell you'll report the sale and gain/loss on your US Schedule D.
IIRC that will be a loss.

The currency reporting is a separate information reporting requirement that
has no effect on your taxes.

BTW, we've all assumed throughout that you're a US citizen or resident
alien.

Yes I am a citizen. Thanks for all of your efforts!
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top