So I have a unique situation and I’m not quite sure where I sit and i need to make a decision. So here is the story, I moved moved to New York in 2017, lived and worked there on an L1 as a non-resident. In 2020 I bought a bunch of stock and held it.
I left the US on 14th Jan but I was receiving a Salary in the US until 31 January 2022. As of the 1st Feb I was employed here and was no longer receiving any income from the USA.
On February 24, I sold all my stock on eTrade due to the economic situation. For example purposes I made $100k capital gains. Things continued to go up so I panicked and re-bought everything. The next day everything started to crash, hoping it would recover I did not sell and have since still not sold. So as it stand as today, using the above example number I calculate that with a long term holding I will owe $15k tax. Now this is where the questions come.
1. I have read that since I am no longer a resident and do not pass the residency test, I will not have to pay capital gains tax.
2. Since my eTrade address is still the US because I wanted to continue to use the platform, they will issue a 1099 and things will get complicated
3. I have also been told you need to sell all your stock before Dec 31. Incur a capital loss to offset the gains so that you don’t need to pay tax. Not trade for at least 30 days after and that will then show as a loss.
4. You can carry forward your loss for an unlimited amount of time and basically not pay gains until you break even again.
5. You can use your standard deduction of 25k married filing jointly to pay for any capital gains tax (in the example $15k) so there will be nothing owing.
6. I have been using turbo tax in the last years, could I just use this for the 1 month?
So, this is all the information I have received, does anyone have any clarity on this?
Thank you so much 😊