What is the name of your state? Japan (overseas)
From about 1996 through 2002, I was involed in the U.S. stock market (I reside in Japan and am a U.S. citizen). Although I NEVER took any money out of the market, I did make a profit in the late 90's. Then, due to the churnning and poor advice of my broker, I cashed out in 2002 with just 7,000$. I was young and really didn't know what I was doing tax wise and thus didn't include the stocks information when I filed taxes. I figured since I didn't take any money out, I didn't have to pay capital gains. As it turns out, the IRS just sent me a letter saying they have a record of sales for 2002, and they want to know what all the stocks were bought and sold for (apparently they have only the sell information). I made no profit, only realized massive loss. I am not so worried about 2002 because I incurred massive loss, everythng. But, can the IRS charge me capital gains on the profits I made on paper in the late 90's, eventhough I took out nothing and eventually lost everything ? Sorry for the long post, but any comments would be very appreciated.
Thank you
From about 1996 through 2002, I was involed in the U.S. stock market (I reside in Japan and am a U.S. citizen). Although I NEVER took any money out of the market, I did make a profit in the late 90's. Then, due to the churnning and poor advice of my broker, I cashed out in 2002 with just 7,000$. I was young and really didn't know what I was doing tax wise and thus didn't include the stocks information when I filed taxes. I figured since I didn't take any money out, I didn't have to pay capital gains. As it turns out, the IRS just sent me a letter saying they have a record of sales for 2002, and they want to know what all the stocks were bought and sold for (apparently they have only the sell information). I made no profit, only realized massive loss. I am not so worried about 2002 because I incurred massive loss, everythng. But, can the IRS charge me capital gains on the profits I made on paper in the late 90's, eventhough I took out nothing and eventually lost everything ? Sorry for the long post, but any comments would be very appreciated.
Thank you