When International Trades Come Home to Haunt You: Navigating the IRS Minefield on Foreign Investment Gains
US traders chasing returns in foreign markets often discover an unwelcome surprise at tax time: a complex web of IRS rules that can erode gains and trigger costly penalties. From PFIC classifications to Section 988 currency treatment, understanding the cross-border tax landscape is as essential as understanding the trade itself. This guide breaks down the key compliance obligations and strategies every internationally active US trader should know.