Possible taxation of unrealized overseas capital gains

[Beancounter]

Unrealized Gains Supreme Court Case Could Change Wealth Taxes

WWW.YAHOO.COM

---

In a landmark case, the U.S. Supreme Court will decide whether a mandatory tax on unrealized gains violates the Constitution. Taxation of unrealized gains is at the...

Interesting court case on taxation of unrealized capital gains.  While this case involves an overseas entity owned by Americans there could be precedence set which affects American assets owned by Americans in the future.  As the article points out a large amount of unrealized capital gains is never taxed because beneficiaries receive a stepped up basis when they inherit these assets.  

[pubic_assistance]

Jeezus.  😳

[+ augustus]

It is SO DUMB to tax unrealized capital gains.  The capital gain might not end up being a gain when sold.  This is a wealth tax.  If they want to capture these unrealized gains upon the owner's death, then just lower the estate tax exemption.  This is a wealth tax. 

Politics redacted.

[Xander]

Dumb dumb dumb. This is bad for everybody and will discourage global investment. What’s good for the goose is good for the gander. 

[cany10011]

Isn't this part of the regular FBAR that must be filed for offshore accounts? 

[+ augustus]

50 minutes ago, cany10011 said:

Isn't this part of the regular FBAR that must be filed for offshore accounts? 

No.  The FBAR is just the yearly report you have to file if you have a foreign bank account, trust, etc worth 10k or more.  This is a yearly tax on unrealized gains of assets, even before you sell them.   It's a wealth tax.  

[cany10011]

16 hours ago, augustus said:

No.  The FBAR is just the yearly report you have to file if you have a foreign bank account, trust, etc worth 10k or more.  This is a yearly tax on unrealized gains of assets, even before you sell them.   It's a wealth tax.  

Thanks for clarifying!

[MikePDNA51]

How can I move cash offshore?

[+ augustus]

On 8/9/2024 at 12:43 PM, MikePDNA51 said:

How can I move cash offshore?

Best not to, unless you have a valid need to.  Like moving overseas.  There are less protections for investors overseas, generally speaking, and especially as a foreigner.  If you want to buy foreign assets you can do that through mutual funds or ETF's.