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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10105
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I made a foreign investment of 50k in a school and got a

Customer Question

I made a foreign investment of 50k in a school and got a return of 50k for a total of 100k and need to transfer the money into the U.S. What can I do to maximize net profit and avoid from being falsely flagged or even audited by the IRS?
Submitted: 11 months ago.
Category: Tax
Expert:  Lane replied 11 months ago.

Hi,

...

I hold a JD (Juris Doctorate, a doctoral degree in the law), concentration in Tax Law & Corporate law, an MBA (specialization in finance & tax), and BBA from Stetson School of Business and Economics, as well as CFP® and CRPS designations.

I can help here

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First of all, if you report this as it (sounds like) it is, a capital gain of 50,000, then you'll be in tax compliance and should there BE an audit, you would receive the no change letter that so may get when audited, that states that you've doing everything correctly.

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If this wasn't actually a foreign ACCOUNT but rather a private investment, then there ould be on FATCA reporting.

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And in terms, again, of your US return, Long-term gains and qualified dividends taxed at

  • 0% if taxable income falls in the 10% or 15% marginal tax brackets
  • 15% if taxable income falls in the 25%, 28%, 33%, or 35% marginal tax brackets
  • 20% if taxable income falls in the 39.6% marginal tax bracket

...

So if this were, say, your ONLY taxable income, then some of the 50,000 (maybe even all of it (ddepending again on your other household income) would be taxed at ZERO%

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Let me know what questions you have from here

...

Lane

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