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My family is moving to France in a few months. I am expecting for us to become French tax residents and thus will be required to report worldwide income in France.

At the moment I have unrealized capital gains on stock purchased. However I also have a large capital loss carryforward. In the U.S. the capital loss carryforward for an individual is indefinite, so any capital gain I realize would be offset by my loss.

My question is if I have a capital gain realized while a French resident, can I use a capital loss carryforward that was created before I became a French resident?

Thanks all
 

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As you see, I have moved your question into the Expat Tax section, since it certainly applies to US expats in general, not just those in France.

Basically, the right to tax the capital gains usually falls to the country in which you are tax resident at the date of the sale of the stock involved. So, in your case, France.

As far as I know, for your US tax returns, you just carry on using your remaining capital loss carryforward to reduce your tax liability to 0. Or you can use the US tax credit (form 1116) to take the credit for the French taxes you pay on the plus-values.

Never having had any capital gains, I'm not really up to speed on the tax treatment on US returns filed from overseas. Perhaps someone with a bit more experience can help here.
Cheers,
Bev
 
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