- From the US perspective, am I allowed to continue holding those bonds as a non-resident alien?
- If so, do I need to let them know of my status?
- How would taxation work as an NRA when I decide to sell (before or after the 5 years mark)?
Thanks!
Thanks for the quick response. I meet the substantial presence test but will likely try to choose split year treatment (as described here). In that case, if I'm not allowed to hold I bonds as an NRA I assume I will need to sell before December 2023.
Thanks for the answer and references! Can you please elaborate on this quote about owning bonds as a non-resident alien? I may be misunderstanding but I am not sure how to apply this to my situation (the owner becomes a non-resident alien).HueyLD wrote: ↑Fri May 19, 2023 8:59 pm Per 31 CFR § 353.6(c):
https://www.ecfr.gov/current/title-31/s ... A/part-353
“Nonresident aliens. A nonresident alien may be designated co-owner or beneficiary or, on authorized reissue, owner, unless the nonresident alien is a resident of an area with respect to which the Department of the Treasury restricts or regulates the delivery of checks drawn against funds of the United States or its agencies or instrumentalities.”
As the owner becoming a NRA, the reissuance exception does not apply.basil wrote: ↑Mon May 22, 2023 12:54 pmThanks for the answer and references! Can you please elaborate on this quote about owning bonds as a non-resident alien? I may be misunderstanding but I am not sure how to apply this to my situation (the owner becomes a non-resident alien).HueyLD wrote: ↑Fri May 19, 2023 8:59 pm Per 31 CFR § 353.6(c):
https://www.ecfr.gov/current/title-31/s ... A/part-353
“Nonresident aliens. A nonresident alien may be designated co-owner or beneficiary or, on authorized reissue, owner, unless the nonresident alien is a resident of an area with respect to which the Department of the Treasury restricts or regulates the delivery of checks drawn against funds of the United States or its agencies or instrumentalities.”
Thanks again, I think that leaves "A nonresident alien may be designated co-owner or beneficiary" (but not owner).HueyLD wrote: ↑Mon May 22, 2023 1:20 pm As the owner becoming a NRA, the reissuance exception does not apply.
See https://www.law.cornell.edu/cfr/text/31/353.2
Yes, I have been trying to reach them for a few days. I was able to reach them by phone today. The representative I spoke to did not know the answer and I received the following response by email:
They did ignore my question regarding paper bonds (which can be cashed outside the US) and only answered regarding electronic bonds. It seems to me as if the actual issue is not ownership by a non-resident alien but the TreasuryDirect account itself.When you open an account you must certify under penalty of perjury that you are a U.S. person as defined by the Internal Revenue Service (IRS): Classification of Taxpayers for U.S. Tax Purposes | Internal Revenue Service (irs.gov)
Once you are no longer a resident of the United States, you will no longer be eligible to maintain a TreasuryDirect® account or securities.