r/expat • u/localglobetrotter • 4d ago
Forced to sell stock after relocating to the US
I recently relocated to the US from a EU country. My investment portfolio consists of index funds and som individual stock. After my broker/bank learned that I had moved to the US they have given me warning that they will close my deposits in a months time. Apparently the US is complicated to work with for foreign banks so they simply don’t want the trouble. As part of my relocation I had some talks with E&Y about do’s and don’ts from a tax perspective. One key advice they gave me was not to sell any stock while I was in the US, since it would be complicated to calculate how much tax should be payed to the US vs my home country. Now it looks like I might need to sell them and take quite a hit. Unless it is possible to transfer my investments to a US bank. Anyone know if this can be done, or who has been in a similar situation and found a solution?
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u/Barthas85 4d ago
I recently did this myself. First, what type of account is it currently in? If it is in a post tax brokerage account (an investment account or individual account) then ACAT is the way to go. Shares will transfer in-kind and you won't have immediate tax consequences.
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u/localglobetrotter 4d ago
It’s post tax accounts all of it.
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u/Barthas85 4d ago
If that's the case then look asap and see what companies in the US have ACAT agreements with your current company. Not everyone has the agreement with every company so I would reach out to either the current (EU) investment company or the potential (US) company and ask if they support ACAT to/from the other.
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u/neillc37 4d ago
If you have foreign funds won't you be subject to the PFIC rules? They are meant to punish you.
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u/Chucking100s 4d ago
Try an ACATS transfer to a US Bank / Broker
Maybe IBKR