Capital income tax
#1
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Joined: Nov 2009
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Capital income tax
I am a British citizen living in the USA on a J-1 visa.
I purchased some shares using a USA based brokerage account.
1) When it comes time to liquidate those assets and pay taxes on any capital income, do I need to file those taxes in the USA only or do I pay UK taxes also? I am worried about being taxed twice.
2) Any idea what happens if I return to the UK at the end of the J-1 visa and then liquidate the assets? Am I correct in thinking that I would have to pay UK taxes only in that case? I want to avoid this as I believe this particular US brokerage automatically subtracts tax at the time of liquidation.
3) Does being a resident alien or non-resident alien make any difference? I believe I am treated as a non-resident alien for the first two years of a J-1 and as a resident alien thereafter.
Thanks for any assistance.
I purchased some shares using a USA based brokerage account.
1) When it comes time to liquidate those assets and pay taxes on any capital income, do I need to file those taxes in the USA only or do I pay UK taxes also? I am worried about being taxed twice.
2) Any idea what happens if I return to the UK at the end of the J-1 visa and then liquidate the assets? Am I correct in thinking that I would have to pay UK taxes only in that case? I want to avoid this as I believe this particular US brokerage automatically subtracts tax at the time of liquidation.
3) Does being a resident alien or non-resident alien make any difference? I believe I am treated as a non-resident alien for the first two years of a J-1 and as a resident alien thereafter.
Thanks for any assistance.
#2
Re: Capital income tax
I am a British citizen living in the USA on a J-1 visa.
I purchased some shares using a USA based brokerage account.
1) When it comes time to liquidate those assets and pay taxes on any capital income, do I need to file those taxes in the USA only or do I pay UK taxes also? I am worried about being taxed twice.
I purchased some shares using a USA based brokerage account.
1) When it comes time to liquidate those assets and pay taxes on any capital income, do I need to file those taxes in the USA only or do I pay UK taxes also? I am worried about being taxed twice.
2) Any idea what happens if I return to the UK at the end of the J-1 visa and then liquidate the assets? Am I correct in thinking that I would have to pay UK taxes only in that case? I want to avoid this as I believe this particular US brokerage automatically subtracts tax at the time of liquidation.
3) Does being a resident alien or non-resident alien make any difference? I believe I am treated as a non-resident alien for the first two years of a J-1 and as a resident alien thereafter.
Thanks for any assistance.
Thanks for any assistance.
http://www.irs.gov/businesses/small/...129253,00.html
Last edited by nun; Jun 22nd 2012 at 12:14 am.