Capital gains taxes on US stocks when moving

[MadMax]

Hi guys,

Would appreciate your help understanding capital gains in the scenario where a HK resident moves to/from the US with an H1B Visa (or any type of non-immigrant visa for that matter, but that allows you to work).

Can you comment on these 4 scenarios to see if my understanding is correct. The first 2 are simple, the last 2 are where I have doubts.

• Scenario 1: HK resident buys US stock in HK for $100 and sells US stock in HK for $200
  --Gain = $100
  --Capital gains tax = $0 (as it all took place outside the US)
  
• Scenario 2: HK resident buys US stock in the US for $100 and sells US stock in the US for $200
  --Gain = $100
  --Capital gains tax = $15 or 15% (long term capital gains taxes paid, lets assume he held over a year and his ordinary income tax rate is 35% or lower)
  
• Scenario 3: HK resident buys US stock in HK for $100 and sells US stock in the US for $200
  --Gain = $100
  --Capital gains paid = Not sure; does he pay $15 as in scenario 2, or only the amount of gains that took place while living in the US. For example, if the HK resident arrives to the US when the stock is $150, does that mean the gain is only $50 and he pays capital gains taxes over that.
  
• Scenario 4: HK resident buys US stock in the US for $100 and sells US stock in HK for $200
  --Gain = $100
  --Capital gains paid = Not sure; does simply not pay anything since he is back in HK, or does he owe taxes in the US for the unrealized gains he accrued until the time he leaves the US.

Thank you, MM

[MadMax]

Bumping one time to see if anyone can help

[Morrison]

[*]Scenario 1: HK resident buys US stock in HK for $100 and sells US stock in HK for $200
--Gain = $100
--Capital gains tax = $0 (as it all took place outside the US)


Wong, this apply only if you are not a US citizen and not residing in USA.
I believe it also does not apply to US green card holders residing abroad, but not sure.
In others words, you could as well buy and sell in USA through an US brokerage.
So the reason you give is WONG.

You should also submit a W 8 BEN form, otherwise the brokerage has no proof that you are a non US investor and just treats you as a US investor
[*]Scenario 2: HK resident buys US stock in the US for $100 and sells US stock in the US for $200
--Gain = $100
--Capital gains tax = $15 or 15% (long term capital gains taxes paid, lets assume he held over a year and his ordinary income tax rate is 35% or lower)

Zero tax , see above[*]Scenario 3: HK resident buys US stock in HK for $100 and sells US stock in the US for $200
--Gain = $100
--Capital gains paid = Not sure; does he pay $15 as in scenario 2, or only the amount of gains that took place while living in the US. For example, if the HK resident arrives to the US when the stock is $150, does that mean the gain is only $50 and he pays capital gains taxes over that.

Tax applies when you realise it, so on the full gain.
[*]Scenario 4: HK resident buys US stock in the US for $100 and sells US stock in HK for $200
--Gain = $100
--Capital gains paid = Not sure; does simply not pay anything since he is back in HK, or does he owe taxes in the US for the unrealized gains he accrued until the time he leaves the US.

Since you did not realise your book gain, there ain't no tax, man.

[Morrison]

You should also read about: by when will I be regarded as tax resident in USA.

In most countries this is somewhat around 180 days.

So if you fulfill certain criteria, you could even stay in USA for up to 179 days
an still not be subject to US income tax.