I have a question that I cannot seem to find a straight-forward answer to.
If an individual purchases US equities and makes a capital gain after say, 12 months - do they pay Capital Gains Tax in the USA at their rates? or in Australia?
Also, if the gain is made in less than 12 months, how is that treated for tax purposes?
A poorly-trained girl on the ATO phone line has hastily advised me that capital gains made in the USA are taxable here, and said that the 50% discount applies if the assets were sold after 12 months. They also said that you receive tax offsets for any tax paid in the USA, though they wouldn't tell me if CGT is payable in the USA if you are Australian (they said contact the IRS) - is this at all correct??
I just want to know if CGT is payable in the USA as an Australian, and also what is the rate? (I believe it is just a flat 15%?) and what is their tax year? (I believe it is the same as the calendar year?)
Also most importantly - will I have to fill in a USA tax return through an accountant?? If so I will not bother buying US equities because the accounting fees do not justify it.