Q1: Is it possible to obtain a Sailing (Departure) Permit from IRS from abroad?
A Sailing Permit from the IRS is basically a document that clears you from having a Tax Obligation with the US BEFORE you leave United States. It is ALWAYS a good idea to be in good standing with the IRS and The U.S. Customs and Immigration, thus you should inquire are your local US Embassy or Consulate.
On the other hand, some individuals are EXEMPT from requiring to get a Sailing Permit.
Q2: Substantial Presence Test vs Bona Fide Residence.
While the Substantial Presence Test focuses on the time spent out of the United States, the Bona Fide Residence Test is more concerned about your intentions and activities while out of the United States.
per IRS:
SUBTANTIAL PRESENCE TEST
You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States (U.S.) on at least:
- 31 days during the current year, and
- 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
- All the days you were present in the current year, and
- 1/3 of the days you were present in the first year before the current year, and
1/6 of the days you were present in the second year before the current year.
BONA FIDE RESIDENCE TEST
The bona fide residence test applies to U.S. citizens and to any U.S. resident within the meaning of IRC section 7701(b)(1)(A) who is a citizen or national of a country with which the United States has an income tax treaty in effect.
To see if you meet the test of bona fide residence in a foreign country, you must find out if you have established such a residence in a foreign country. If you go there to work for an indefinite or extended period and you set up permanent quarters there for yourself and your family, you probably have established a bona fide residence in a foreign country, even though you intend to return eventually to the United States.
Q3: Tax Treatment of US Investment Income
Capital Assets held for a year or less before disposition will incur either a Short-Term Gain/Loss. Short-Term Capital Gains which are taxed as ordinary income based on your tax bracket.
Capital Assets held MORE THAN a year before disposition will incur either a Long-Term Gain/Loss. Long-Term Capital Gains receive preferential tax treatment of 0%, 15%, and 20% depending on your tax bracket.
Also, depending on your immigration/visa status, Financial Institutions may required to apply Backup Withholdings of 24% to the proceeds of a transaction.
Lastly, transferring Assets to out of the United States may trigger a tax consequence at the time of withdrawal and depending on your circumstances, create an instance where you could be subject to taxation by other jurisdiction in addition the United States. (United State taxes Worldwide income). Please consult a Tax Professional about your particular circumstances !!!
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