Should I change my brokerage accounts and IRAs to my address in Australia, where I am living for two or three years? Is there a tax advantage or disadvantage to capital gains, dividends and investment income being generated by an account domiciled abroad?
probably not
but you do get to 6/15 to file rather than 4/15 - if thats what you mean by an advantage ___________________________________
-----> real address on hobokeni or hobokenx
No! In fact, it may complicate your situation.
Living abroad has no effect on the taxation of anything except your salary or other "earned" income. The "Foreign Earned Income Exclusion" is just that; it applies only to earned income. So, your interest, dividends, and capital gains or losses are reported just as you would if you were living in the US. But, if the balance in your brokerage account, plus and bank accounts outside the US, exceeds $10,000 -- combined amounts and at any time during the year -- you must file the Report of Foreign Bank or Finincial Accounts -- Form TD F 90-22.1. You may find it easier to deal with a broker locally but there are no US tax advantages. There could be negative effects on your Australian tax situation if you have your account with a local broker, too. Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans
There is no tax advantage or disadvantage as American citizens are taxed on their world-wide income. In fact, moving your IRA will likely cause you to incur early withdrawal penalty. The brokerage account will not have the withdrawal penalty but there will likely be service charges. You may get a foreign tax credit for the account but you currently get one on your Australian tax return anyway which you need to file in (I think) August or Sept.
So, If I have an accout with an australian mailing address with a US broker and do this so I can trade certain derivative contracts that US resients cannot becuase of SEC and other rules, will I incur AU taxes as well as US for capital gains and dividend and whatnot. I know I have a four-year exculsion on dividends and cap gains from AU taxes if those moneys are generated in the US. But does the simple matter of my mailing address on a brokerage account obviate the exclusion?
Now you are asking about Australian taxes combined with US taxes and that is beyond the majority of the people frequenting this forum. I think you need to consult an expert in Australian and US Taxes. While you'd prefer to figure things out yourself, you will find that a basic consultation with its hourly fee, may save you sufficient to pay for the session. Figure out your questions and check around locally. I don't know the going rate in your area but I expect that you should expect about $100-250/h US. Probably a little higher in AUS. You may even find yourself someone who can do the tax returns AND save you all of their fee PLUS save you time in trying to find the answer.
Now you are asking about Australian taxes combined with US taxes and that is beyond the majority of the people frequenting this forum. I think you need to consult an expert in Australian and US Taxes. While you'd prefer to figure things out yourself, you will find that a basic consultation with its hourly fee, may save you sufficient to pay for the session. Figure out your questions and check around locally. I don't know the going rate in your area but I expect that you should expect about $100-250/h US. Probably a little higher in AUS. You may even find yourself someone who can do the tax returns AND save you all of their fee PLUS save you time in trying to find the answer.
Personally, I doubt very much that you will find some one who can do both US and Australian taxes. I've had a few clients who have had to pay Australian taxes and it always seemed to me that their rules were nearly as complex as US rules. To find some one who can stay atop both systems is expecting a bit much. Unless things have changed recently, the differences start with the filing dates. Australia uses a fiscal year, June
30; while the US is on a calendar year system. I know it always presented a problem when trying to reconcile amounts between Australian and US returns. In my opinion, you need an Australian accountant to help with Australian taxes and a US accountant to help with US taxes. I can tell you that the US rules for expats are not as simple as they may seem. Over the years, I have seen many returns prepared by accountants not familiar with the rules that included major mistakes. Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate AmericansBeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.