Maybe my questions were not clear, just giving a short recap below:
- I hold a French "assurance vie" account, which generates gains (interest) in euros, credited monthly and annually.
- The money put here is guaranteed and there is a minimal rate guaranteed for each year - it usually ends up to be more (around 2/3%). So it is a very low risk and common investment in France.
- Since I no longer live in France, the social taxes (17.2% of each accrued interest) don’t apply to me anymore, but income taxes (12% of interest when money is withdrawn from the insurance vie account) would still apply in France when I withdraw the money.
My main questions are:
- Do I need to report the gains as income in the U.S. when they accrue, even if I don’t withdraw the money (I did not withdraw the money)?
- If so, would I face double taxation (U.S. taxes on gains as they accrue + French income taxes when withdrawn)?
Thanks for your help
