Hello. I created this account today specifically to join this supportive subreddit and ask the question below. I've found many posts helpful, particularly those posts made by starkimpossibility.
If my question breaches the rules of this subreddit, please advise so that I can reframe it. I look forward to your help.
Background: I've been living in Japan since June 2021, so I am still a non-permanent tax resident. Since June 2021, I'd been making purchases here with US credit cards. I understand that these constitute a remittance. In order to continue regular payments on the card balances, I had been regularly sending my Japanese salary to my US checking/credit card account through Wise.
Eventually, I decided to clear myself of all credit card debt by selling off a portion of the ETFs I hold on my US-based Vanguard brokerage account. This decision was made due to the rather meager payments (by way of my Japanese salary) being offset by the large monthly interest rates on the credit cards. I made a $23,000 sale in December 2023 (net gain $5000) and a $33,000 sale in May 2024 (unsure of net gain until 2024 tax form is published next year). The ETFs were all purchased prior to my arrival in Japan in 2021.
After these two ETF sales, I moved the proceeds directly to my Wells Fargo checking/credit card account, and from there made individual payments to the rest of my credit cards to completely pay them off.
That's the background.
My question is this:
While the proceeds from the US-based ETF sales were not moved into a Japanese-based vehicle, due to my having logged into my Wells Fargo account while in Japan to access those proceeds, are they subject to tax in the eyes of the NTA? I have compiled my credit card statements and 2023 Vanguard 1099 in anticipation for a visit to the city tax office to get their final word, but before that, I kindly ask for yours. 🙂
by DeliciousPuffin