You must be a U.S. taxpayer to take advantage of the OZ tax incentives and must remain a U.S. taxpayer during the term of the program. You cannot use capital gains from other countries.
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How can foreign investors take advantage of the OZ tax incentive?
Do I need to be a resident or is it enough that I have made investments in the country? Can I use capital gains from a different country?
Answers
A foreign person that is a U.S. taxpayer can make a qualifying investment to get OZ benefits but the capital gains have to be sourced to a U.S. to be eligible for deferral.
No, they have to be capital gains taxable in the U.S.
You do not have to be a resident of the state. If you have foreign capital games that are taxed in the U.S., you can use those gains and roll them.
You can use any gains considered the capital for U.S. income tax purposes. You need not be a U.S. citizen or resident, but you must have capital gains you would report in the U.S. If you're a non-resident alien and non-U.S. taxpayer with non-U.S. capital gains, that doesn't count.
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