Milss

Hi,

Sorry if this has already been asked, I couldn't find definitive information when I searched.

I've been living in the USA for three years on an F1 visa, and won't be returning to the UK for another two years at least. Until now, I've been filing tax returns in the US as a non-resident alien.

I opened a US brokerage account this year, and I was wondering whether I am required to pay capital gains tax on realized gains to the IRS or HMRC.

If anyone has any experience related to this, I'd be very appreciative.

Thanks.

md95065

You are resident in the US for tax purposes so you would report any capital gains, dividend or interest income on your US tax return.

Your broker should send you one or more 1099 forms early next year with details of these amounts.

nun

You will pay tax to the IRS, no UK tax liability on your US brokerage account. I believe F and J visa holders are classed as non-resident for tax purposes if they have been in the US for less than 5 years, but watch out for the concept of "tax home".

This is applicable to your situation.

http://www.irs.gov/Individuals/Inter...gn-Governments

nun

.....just to emphasize the complexity of your situation. You will be classed as a non-resident for tax purposes, but if you've been in the US for the last 3 years your tax home will probably be the US. So as a non-resident your capital gains will be taxed at 30%, but as your tax home is the US I don't think you can use the US/UK tax treaty to reduce that tax. I might be wrong, but my reading of the rules is that you will have to pay 30% tax on your capital gains.