H1B visa: Do I have to pay taxes on equity encashed from a company based abroad?

[roalddahl14]

Dear pk,

Thank you so much for your detailed, patient, and helpful explanations! I have one last question: Considering the tax implications, I am thinking about exercising my option to buy shares now and then selling them after one year. Does my H1B visa allow me to hold shares of a foreign company?

[pk]

Dear @roalddahl14 ,. your visa status in and of itself  does not impact your ownership of  foreign or domestic assets.  However, once you become a US person ( citizen /  GreenCard / Resident for Tax purposes ) US treasury regs come into play -- FBAR, FATCA and  doing business with sanctioned persons and/or countries.  You are treated just like all other US persons.

Hope this clarifies   your concerns.

Namaste ji

pk

[roalddahl14]

Thank you. I am resident for tax purposes (I have been in the US since 2018). So, am I still allowed to own shares of a foreign company?

[roalddahl14]

Dear pk,

Thank you. I am resident for tax purposes (I have been in the US since 2018). So, am I still allowed to own shares of a foreign company?

[pk]

@roalddahl14 , there is no prohibition on US persons owning equity of foreign entities  UNLESS it is a sanctioned  entity ( by US Treasury ).   Bosch India is certainly not on that list.   So enjoy your equities.

Namaste ji

pk