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Why? If you make profits in a foreign currency such as Swiss franc, you only pay tax once you convert those to U.S. dollars.
by qq66 13y ago
Why? If you make profits in a foreign currency such as Swiss franc, you only pay tax once you convert those to U.S. dollars.
- kudu 13y agoI'm not sure that's correct. I'm no tax expert, but from my limited knowledge of US income tax, it applies internationally and isn't based on currency. There are some tax treaties to protect people with multiple nationalities from double taxation, but I don't think it's related to currency. Do correct me if I'm wrong.
- saalweachter 13y agoWhile I'm not a tax expert either, the fact that the US demands that people living and working indefinitely in a foreign country pay taxes (something that people have been outraged about on HN before) seems to indicate that they're perfectly willing to tax your Yen.
- kevinnk 13y agoCitation needed, I'm not a tax expert but based on what advice I've previously been given and on http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad http://www.irs.gov/Individuals/International-Taxpayers/U.S.-... I'm pretty sure that's not true.
- gamblor956 13y agoYou are supposed to pay profits earned in foreign currency on a quarterly basis, via self-reporting, much the same way that self-employment and investment income is suppoed to be reported. In practice, if you use a US financial exchange, they can pay the estimated taxes for you (but not all will do this), and you settle the taxes owed (or refund due) at the close of the tax year.
- javert 13y agoI thought you were supposed to pay profits on foreign currency only when you "cash out" to dollars. Guess I was wrong. Was I just confusing the tax rules for foreign currency, and commodities? Is that the rule for commodities?
- DanBC 13y agoI was under the impression that US tax authorities went after American citizens, even if those are dual-citizenship citizens who've never lived or worked in the US.