Is there Capital Gains Tax on an offshore bank account in Singapore for US Citizens?

Question

I am an American in the United States and I am thinking about opening an offshore account in Singapore. I would like open an account and have the currency in euros.

If the Euro appreciates against the US Dollar and I collect interest on my account, will I have to pay Capital Gains Tax in the United States?

If so, what what is the tax rate (United States Capital Gains Tax) for a savings account with say $20,000 (US Dollars or Euros) in Singapore?

Answer 1

Yes. As an American citizen you are taxable on any worldwide income including if you were not resident in the U.S. You also have to report your offshore accounts amounting to $10,000 and more.

Singapore does not tax interest on bank deposits earned by non-residents, so you have to pay taxes at home. Short-term capital gains are taxed as ordinary income. Long-term - at a lower rate.

You are welcome to ask for more details at http://www.isla-offshore.com

It's a free consultancy project.

Answer 2

No.