But don’t you get tax credit with the US for paying taxes to the country you’re in? I am assuming the taxable asset is in the country you are living in not in the US. I don’t know if its 100%. hard to believe that IRS would give up the full amount let alone any part of it.
Yes you do they have tax treaties so you wont pay double taxation or something but you have to pay Uncle Sam no matter where in the world you live.
It’s considered quite strange, no? Certainly odd.
And as PGR said it puts onerous requirements on financial providers therefore most won’t deal with US citizens because of it.