foreign investments loss and taxes when moving to the states

[irkas94 0]

Hello everyone.

 

I just moved to the States this month and turns out that my investment platform etoro is not working in the US because when I signed up I was in South Korea and was under the Australia law/regulations. Now that I became a Green Card holder, they must return my investment and close my account.

 

When I was in Korea, I would save money from my salary and invest it in crypto, stocks, etc. So now that the market is down, my initial investment of over 30k went down to 13k. I'm so pissed that etoro is doing this and it's so stupid. Anyways, I'm new to the whole US taxes, how would this be considered in my taxes, is US going to further take out a chuck of that 13k that I get or will it be in consideration as a loss from 30k? The etoro asked me to fill W-9 form. 

Do i need to hire someone to get a consultation?

 

I do not want to pay even more money in taxes as i already lost so much from closing those positions and gained nothing when the value of everything is in red. 

 

Ps. I am planning to invest whatever I get back with hopes of returning at least what I originally put.

 

Thanks for any pointers.

[Wuozopo 4,293]

On 6/26/2022 at 12:29 AM, irkas94 said:

Hello everyone.

 

I just moved to the States this month and turns out that my investment platform etoro is not working in the US because when I signed up I was in South Korea and was under the Australia law/regulations. Now that I became a Green Card holder, they must return my investment and close my account.

 

When I was in Korea, I would save money from my salary and invest it in crypto, stocks, etc. So now that the market is down, my initial investment of over 30k went down to 13k. I'm so pissed that etoro is doing this and it's so stupid. Anyways, I'm new to the whole US taxes, how would this be considered in my taxes, is US going to further take out a chuck of that 13k that I get or will it be in consideration as a loss from 30k? The etoro asked me to fill W-9 form. 

Do i need to hire someone to get a consultation?

 

I do not want to pay even more money in taxes as i already lost so much from closing those positions and gained nothing when the value of everything is in red. 

 

Ps. I am planning to invest whatever I get back with hopes of returning at least what I originally put.

 

Thanks for any pointers.

 

The 13k is not going to be taxed like it was new income or salary you earned in the tax year. 
Taxes are applied to investment earnings you made during the tax year, like interest and dividends earned in an account, but not on your balance. If your account earned interest or a dividend payment  in 2022 prior to closing, the earning only is reportable.  
 

If you make a gain when you sell an investment, the amount of capital gain is a taxable situation. Had your investment closed out at 32k, then you would have only $2k as the taxable situation. A loss can help offset other gains. There are loss carryovers to the next tax year. You can go to irs.gov and search for “capital gains and losses” to learn more about how it works.

Edited June 28, 2022 by Wuozopo