Have a Tax Question? Ask a Tax Expert
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
Is the person Japanese or US citizen/resident?
Both Japanese & US resident
When you sell the Japanese stock, then you are also taxed in the United States as a capital gain.
Let me take a moment to review the tax treaty and see if there are benefits that would allow you to not recognize the gain
However, the simple act of wiring funds would NOT create a tax liability
So give me a moment to look at the tax treaty
She has significant money in Japanese stocks in Japan and want me to check if she can bring the money over to diversify in a USa account.
Yes, she can bring the money over. There's no tax simply for transferring money
and according to Article 16 of the tax treaty, she would only be taxed in Japan on the capital gains derived from the sale of Japanese stock
CLICK HERE for the tax treaty
Do you have further questions about this matter?
To recap. If she sells the Japan stocks in Japan she pays cap gains tax in Japan and no tax is due in the US?
That is correct, under article 16 of the tax treaty
You're welcome. Is there anything else?
If not, please rate as "excellent" so that I may receive credit for assisting you today
No. Have a good day!
You too. Please don't forget to rate!
Can I ask another question re: Japan?
Thank you Megan. My question is whether the tax treaty applies if the person is a resident of the US with a Green Card and not a US Citizen. She resides in the US but is a citizen of Japan?
Thanks Megan! Just wondering if I can ask for you when I have other tax questions? You've been most helpful!
Megan, I can't rate you on the follow up question as I would have to pay $30 more. I know I'll be "tapping" you for more questions. Is there any other way to give you credit for the follow up response?
Can I give you a another bonus without paying the $30? If not I'll make it up to you when I ask another question. Thanks again! Jim
Thanks again Megan and have a great day!