Multi Currency Tax


Multi currency taxation confused many inexperienced tax preparers as you’ll see in this lesson.

A subscriber just wrote:

Dear Gary  I am an American. My accountant says that off shore  investing is tax prohibited depending on the country. What is the taxation in Denmark? And in London?  Respectfully

My reply:

Your accountant is not experienced in this.

Essentially investing abroad is tax neutral in most major countries.  For example non American investors  who invest in stocks and bonds or hold US bank accounts the US are generally not taxed by the US.

The same is true f US or other investors aborad.

There is no tax on non English stock and bond investors in London. There is no tax on non Danish stock and bond investors in Denmark.

Stock and bonds purchased abroad are treated under US tax law in the same way as stocks and bonds in the US for tax purposes. The only place where there can be a negative tax situation is with overseas mutual funds that fall under PFIC regulations.

See more on PFIC

Regards,

Gary


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