Can I Invest in/Trade stocks while on a pending EAD and AOS?

[walkingoneggshell 8]

Hi, 

 

Previously, I asked if here if it's possible to work while my EAD and AOS applications are still pending. I got my answer and I'm so thankful to the members who provided the great article for reference; TLDR I can if I want to but that's risking it as there have been no precedents that have gone to court. Now, I'm wondering if the same rules apply to investing/trading stocks and/or cryptocurrency?

It's not employment and I will be using my own savings before coming here. Anybody have any experience and advice? It's not mentioned anywhere in the USCIS website and all I could find on the web are questions about WORKING, nothing about investing/trading. Anyone on the same path as mine? K1 fiancée adjusting to PR that's done or is doing this?

[Crazy Cat 41,845]

Earning income is not prohibited.  Working/employment is prohibited without proper authorization.  There is a difference.

 

@payxibka can probably explain it well.

Edited December 29, 2020 by Lucky Cat

[walkingoneggshell 8]

thanks

[Boiler 45,486]

Passive investing would be ok.

[walkingoneggshell 8]

Thanks! That's what I was thinking too. just wanted to know if anyone shares the same idea or has experience. I'm thinking of using investing apps like Robinhood and Acorn which basically invests your change.

 

For everyone's reference, here's the only other relevant discussion I was able to find online:

 

https://www.trackitt.com/usa-discussion-forums/i485-eb/527054591/stock-trading-in-h1-b-status-485-pending 

[Adventine 3,196]

Interesting. I am also a K1 applicant looking to move my investments from my home country to the States. However, I am not planning to actively trade stocks or buy cryptocurrency. Just investing in low cost funds from providers like Vanguard or Fidelity. I understood this is perfectly acceptable because I'm investing my own money earned in my home country before moving to the States.

 

Looking forward to feedback from the more experienced members here.

 

Edited December 29, 2020 by Adventine

[walkingoneggshell 8]

so, based on everyone that's responded so far, as long as it's passive income, it's fine and based on the only other article (I copied in this thread) just be careful about making too much investments to be considered a day trader? I'm new and clueless about investing, I'm just starting and studying up now. The only ever "consequence" would be come tax filing season, explaining your... assets? income to the IRS. 

[Boiler 45,486]

IRS do not care about immigration status. Day Trading would be an issue.

[Adventine 3,196]

If you're new to investing, best to do some more research before deciding on the best path for you. 

 

The following resources may be helpful:

 

Stock Series | JLCollinsnh

Bogleheads® investment philosophy - Bogleheads

[aaron2020 11,651]

Being new and clueless about investing + day trading = a dangerous situation.

 

Are you aware of the wash sale rule?  You may not be able to deduct your losses.  

[walkingoneggshell 8]

Thanks Adventine!

 

aaron2020, like I said, I'm still studying. I just wanted to know if it would affect my green card application.  Thanks for the heads up, I'll add it to the list of things I need to study and look into.

[Adventine 3,196]

Since we're touching on the subject, here is another article specifically addressing taxes: 

 

US tax pitfalls for a non-US person moving to the US - Bogleheads

 

As always, best to consult a licensed tax professional / fiduciary investment adviser before making any big decisions.

[African Zealot 1,455]

19 hours ago, Boiler said:

Day Trading would be an issue.

What makes you think so? I don’t share that view.

 

 

Quote

 

To the taxmen, you are a trader only if all of the following apply to you:

• You seek to profit from daily market movements in the prices of securities, not from dividends, interest, or capital appreciation.

• Your activity is substantial; the IRS code does not spell out what substantial means, but it probably means you’re making at least 3,000 trades per year.

• You carry on the activity with continuity and regularity. In other words, day trading is more or less your full-time job, you’ve stuck with it for at least six months already, and you plan to keep trading into the next year.

 

I would think immigration for all intents snd purposes will consider what OP is planning to do as investment and hence acceptable.

[Boiler 45,486]

Passive vs Active, similar to renting short term vs long term.

[United940 3]

Depending on the brokerage, when you will be creating an investment account they will ask you if you are citizen, permanent resident or under what visa you are. (All of them will ask for SSN) If I'm not wrong (which I can be) you probably can invest, but not trade, read more about capital gains (difference between short and long capital gains) and how they are being taxed. Basically trading is considered to be active income, which you are not allowed to do without EAD

To avoid any confusion I would recommend you to trade either from your spouse account or use Honk Kong brokerages( or whereever you are from). 

Edited December 31, 2020 by United940