# Expat Using U.S. Family Address (Domicile) for U.S. Based Investments



## PaulMG (2 mo ago)

Hello, Expat Forum.
I’ve been living and working abroad for over ten years, but I still hold a U.S. bank account, driver’s license, teaching credential, and voting registration all tied to my family address in Texas.
I’d like to invest in U.S. based cattle lots, stocks, etc, and use my US bank account and U.S. family address even though I do not currently live there, but it serves as my domicile. I would declare all profits on my US Taxes, and pay any capital gains taxes without a hitch, but would this cause trouble for me with the IRS, such as a fine or something, as I live and work abroad? Or would it simply be an issue with the country I’m currently living in?

I look forward to read what you all think about this.


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## Bevdeforges (Nov 16, 2007)

As a US citizen (assuming you are one) you are ALWAYS liable for filing US tax returns and paying tax on any sources of income not specifically excluded (i.e. form 2555 for "earned income") or credited (form 1116). Most countries with income tax will also require you to declare you "worldwide revenue" if you are considered tax resident there. You don't get to choose which country you pay your taxes to.

Starting from that, there is no particular legal restriction to you investing in US property or investments - however more and more brokers, banks and other financial institutions do everything they can to avoid dealing with non-residents, whether non-resident taxpayers or non-resident aliens. As long as you report your worldwide income to both the US/IRS and to your country of residence tax authority, you're fine. The trick is to properly apply the available credits and exclusions to avoid any double taxation. The address you use for your US investments isn't really that critical - except if the financial institution you're going through is trying to offload "foreign investors."


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## PaulMG (2 mo ago)

Thank you for your reply, @Bevdeforges. Sure, I’m a US citizen and have been living and working abroad for more than a decade, and I’ve completed my taxes every year for both the US and country of residence, so no issue with that.

Reporting all my income to US/IRS is no problem at all, and as you had explained, if there is no problem with using my family’s US-based address to invest with cash that I already have in my US bank account from abroad, then, cool!

However, would it be considered fraud by any means as I’m putting in an address that I don’t currently live at (although it’s my domicile) in order to be able to invest?
The firm that I’m investing with wouldn’t be the wiser, but IRS would surely know the different address when tax returns are turned in.


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## Bevdeforges (Nov 16, 2007)

The IRS doesn't really care what address you use for your bank accounts or financial accounts. There are even US taxpayers living abroad who use a US address (whether that of a family member or that of their tax preparer) for filing their US taxes. If the US financial institution doesn't require any sort of "proof" that you're using an address that is your "primary residence" then it's not a problem. If they do want some sort of heavy duty "proof of residence" then it's their problem - and the usual "solution" is that they simply shut down your account. (And yes, they would have to send you your money if they shut the account down.) But I've never heard of the IRS comparing the address you file your taxes from with the "mailing address" you use for any of your financial accounts.


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