Foreign Investment Funds
Mutual funds, ETFs, and managed portfolios held outside the U.S. are taxed under unusually harsh rules once you're a resident.
What This Is
If you hold mutual funds, ETFs, or a managed portfolio through a bank or broker outside the United States, U.S. rules treat those holdings very differently from the same investments bought through a U.S. broker.
The short version: once you're a U.S. tax resident, gains and distributions from these funds can be taxed at the highest rate, with an extra interest charge for every year you held them, and each fund needs its own annual form. It is one of the most common and most expensive surprises for people moving to the U.S.
Why the Date Matters
There are elections that can soften this treatment considerably, but the useful ones generally need to be made in your first U.S. tax year — and some planning only works if it happens before you become a resident. Selling, switching, or restructuring after you've arrived usually locks in the harsh treatment for what you already hold.
What a Paid Assessment Does
A licensed accountant looks at what you actually hold, whether each fund is caught by these rules, what your options are given your residency date, and what each option would mean for your reporting. You get it in writing, signed.
See Whether This Applies to You
The free assessment checks this and five other areas against your residency date.