Down under or Thai? Aussie mum trades Oz for Land of Smiles

[parallaxtech]

Is it possible to open a brokerage account with local money without triggering a 1099 to the IRS for capital gains? I have looked at HSBC and etrade but suspect they report all capital gains to the US.

[Lobo4819]

This is getting touchy all over the world, as the US is flexing its muscle to get former safe havens (Switzerland, Panama) to share information with them and the IRS. I have been living in Panama, and the IRS has just shipped down 35 IRS agents to begin investigating banking records of expats, where formerly these records were off limits. The government here is now also requiring transparency of corporations, even bearer-share corps, if that makes sense. They have spent more money than there is in the world, and now want you to fund it. I'm sure where there is a will, there's a way, but the rules are changing very quickly.

[Pib]

Even if a 1099 or similar tax doc is not generated, Uncle Sam still requires us Americans to report the income on our tax return...and I know we all do that. Preaching to the choir I know.

[ericg1953]

If you open an account with an online investment company that doesnt ask for your S.S. # ,they WILL ask you for your passport number and that will enable the US Govt to track all your transactions as its all tied together.

[Naam]

If you open an account with an online investment company that doesnt ask for your S.S. # ,they WILL ask you for your passport number and that will enable the US Govt to track all your transactions as its all tied together.

based on the passport number the US government can't trace anything and that too applies when you submit your SS-Number.

fact is that neither the government nor the IRS need to make big efforts to "track" as banks (those few who accept persons liable to pay U.S. income tax) will submit a "1099" for each transaction (to compute capital gains tax) and/or income you receive.

although being a foreigner i opted for some years (based on my stay) to pay a fair share of taxes to the IRS. for that purpose i established an "earmarked" IRS account which contained a number of bond funds, some of which paid monthly coupons. at the end of each fiscal year the IRS received more than 150 individual handwritten "1099s" (i received copies). i doubt that somebody went to check them and assume they trusted my income tax return.