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Level 2
posted Jan 21, 2024 8:43:38 PM

Owning foreign stock through Interactive Broker

If I, a US citizen, buy a foreign stock using Interactive Broker, would I need to file FBAR or FATCA? What are the tax implications of owning foreign stocks through Interactive Broker?

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1 Best answer
Expert Alumni
Jan 22, 2024 5:39:14 AM

No, you don't have to file an FBAR based on owning foreign stock through a U.S. financial account. 

 

Interactive Brokers is headquartered in Greenwich, CT and is regulated by the Securities and Exchange Commission (SEC), so it's not a foreign financial account. 

3 Replies
Expert Alumni
Jan 22, 2024 5:39:14 AM

No, you don't have to file an FBAR based on owning foreign stock through a U.S. financial account. 

 

Interactive Brokers is headquartered in Greenwich, CT and is regulated by the Securities and Exchange Commission (SEC), so it's not a foreign financial account. 

Level 2
Jan 22, 2024 3:57:49 PM

Thank you, so it's just like owning a domestic stock? Would I need to pay foreign tax or is Interactive Broker going to do it for me?

Expert Alumni
Jan 23, 2024 6:10:54 PM

Yes, it is similar to  to domestic stocks. If foreign taxes are paid, the broker will pay them and then report this in the disclosure statement issued with the 1099B. You might wish to verify this with Interactive  Brokers.