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If you are a U.S. citizen or resident alien, you must report income from all sources outside of the U.S. This is true whether or not you receive a Form W-2 Wage and Tax Statement, a Form 1099 (Information Return) or its foreign equivalents.
Does the overseas company has any presence in the US?
No the brokerage company has no US affiliates.
The CTFC Banking rules do not allow USA brokerage co. This type of leverage, Hedging, and FIFO (first in first out) Rules apply. I can't find any laws I'm breaking but then again, the things I read about the CFTC Banking rules, I need clarification before I get to deep. I think I read somewhere where I need to register this type of offshore account with the Treasury Dept. The opportunity is too lucrative to pass up. The same account in use in America is yielding 12% (which is okay) a month. But in Estonia , with nothing at all different except the CTFC rules Yields 32% Net!!..Just crazy the difference. It is a simple as moving the account offshore. I don't want any hassle with the government or the IRS....I not trying to hide anything to either Just want the opportunity to trade offshore legally and pay my fair share of taxes......Thank you
I am awaiting an answer for being in compliance with all government and IRS rulings of an offshore non-USA affiliate brokerage account. What steps are needed and what order? Thank you.
As noted, the law requires U.S. citizens and resident aliens to report any worldwide income. This includes income from foreign trusts, and foreign bank and securities accounts.
In most cases, affected taxpayers need to file Schedule B, Interest and Ordinary Dividends, with the tax returns. A taxpayer may also need to file additional forms such as form 8938, Statement of Specified Foreign Financial Assets, or form TD F 90-22.1, Report of Foreign Bank and Financial Accounts, with the Treasury Department
publication 4261 provides the guidelines for filing information about foreign financial accounts that exceed $10k (in aggregate)
If you will be paying tax in Estonia, you may also be able to take either a credit or a deduction for income taxes paid there. This benefit reduces the taxes you would pay in situations where both the U.S. and foreign country tax might double tax same income. The extent of the credit would depend in part on a treaty that may or may exist between Estonia and the US. Finally, as is recommended with most tax filings, you should use a CPA to file your tax return especially since this would not be an ordinary return.
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Is this Kind of account (Forex non USA affiliate ) legal for US residents as long as we proceed with your said anwser? The only reason I'm asking this question is because I don't understand the CFTC Overseas brokerage accounting rules.....
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