I will have the several income source in Japan and was curious how Japan prioritizes income when it comes to non taxed income, more favorably taxed items like Capital Gains and less favorable income sources. I don’t plan on remitting all income to Japan as some will stay in the U.S. to pay for US related expenses and some will be reinvested. In the U.S. ordinary income is taxed first and favorably taxed income is taxed last so I assume it is similar in Japan.
I will have the following:
-US Government Pension (not S.S. and is exempt by treaty)
-US Government Disability
-Rental Property Income
-Qualified Dividends
-Ordinary Dividends
-Long Term Capital Gains (owned for 366+ days) from my brokerage
-Original Basis from the selling from my brokerage.
-Roth Conversion
I’m sure it doesn’t matter as money is fungible, but I plan on doing Tax Gain Harvesting to take advantage of the U.S. 0% tax rate on Qualified Dividends and Long Term Capital Gains within my brokerage. I plan on reinvesting the gains I don’t need as well as the basis without transferring money out of the account much less remitting the income.
by Throwaway4567894246