Capital Gain from Trading US stocks

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 · Accepted Answer

BlakeATO · Answer

Your residence status generally won't change just because your country-of-origin for your income does. There are a few things that come into play, mostly looking at where your social, familial, and government-entity ties lie. If you move countries, though, it might change. The good news is that you don't have to work out your tax payable. We'll do all that for you when you lodge your return, and you'll be taxed at your marginal income tax rate. You will, however, need to work out your capital gain or loss. There's a bit that'll go into it. Each time you sell shares as an investor, you'll have a capital gain event to work out. This means for the shares sold on 1/8/20, you'll have a capital gain event, too. When you work out your capital gain, you'll need to use your capital proceeds - cost base = capital gain. It's basically your total sale value - cost to buy, hold, and sell shares = total capital gain. If your residency status does change, you'll have a capital gain event for the stocks when it does because they aren't taxable Australian property. Non-residents are only liable for capital gains on taxable Australian property (which largely boils down to real estate). You can read about your tax residency, if you stop being an Australian resident for CGT, and how to calculate your CGT on our website.

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