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...
This article examines the FATCA (Foreign Account Tax Compliance Act) and explains the significant impact it has had on Americans abroad. It details how the legislation has forced foreign financial institutions to directly report to the IRS on assets held by Americans...