When it comes to wise and efficient investing, American expat investors should use U.S. funds and avoid using non-US mutual funds to avoid PFIC problems.
Thun Financial is now Creative Planning International
Providing investment management and financial planning services
to cross-border investors and Americans abroad.
Learn about ETF (Exchange Traded Fund) as an investment and how they can be particularly useful as a planning tool for Americans abroad.
1. Buying Foreign Mutual Funds Foreign mutual funds may seem attractive to an American living abroad. However, in the view of the IRS, a foreign mutual fund is considered a Passive Foreign Investment Company (PFIC) and is a tax nightmare for U.S. tax filers. If you...
FATCA 101: What American Investors Need to Know Many U.S. expats are unaware of how the Foreign Account Tax Compliance Act (FATCA) affects them and their taxes. Enacted in 2010, FATCA requires foreign financial institutions to directly report to the IRS on assets held...