“Last year I was 298 days out of the USA. How is the tax treatment for that kind of funds?”--->Basically, either as a US citizen or a US resident alien UNDER either US Tax Law or US INS Rules, you are liable for US taxes, both federal and state( if your state imposes taxes on its residents; 9 states do NOT impose income taxes on their residents.) on your World wide income and US source income. I guess as you are physically present in the foreign country for 298 days(IF less than 330 days during a 12-month period), you are NOT subject to foreign earned income exclusion credit on your US federal return. However, as long as you pay taxes to the foreign taxing authorities on your income that you earned in the foreign country( if you have), you can claim your foreign tax credit on your federal return, NOT on your state return by filing form 1116 and report it on 1040 line 47 or on 1040 Sch A line 8.However, as yu don’t pay CG tax on the portfolio income, dividend income in Brazil, I mean, you are subject to both federal and state income taxes on your Brazilian dividend income on your return. You need to file Sch D for the dividend income and are subject to wither 0% or 15% LTCG tax rate in US; I fyour marginal tax bracket in 2011 is 15% or less, then you do NOT pay LTCG tax on your dividend income. As long as your marginal tax rate in US is higher than 15%, then you are subject to your LTCG tax, 15%, on your Brazilian dividend income.
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Capital gains tax in the United States - Wikipedia, the free encyclopedia
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