International Implications Investing in US Stocks

Hi just wanted to know what are the implications of investing in US stocks in particular as an Australian citizen?
Are there for example any tax obligations i.e estate tax laws/or a higher tax bracket as opposed to investing simply in ASX stocks?
Does anyone here invest in US shares for the long term and is it difficult come tax time as opposed to ASX shares or is it pretty much the same?
I only ask because the valuation models I am using appear to overvalue the majority of the ASX stocks at the moment, where if I apply it to US stocks there seems to be a far greater selection of undervalued companies so I am eager to start investing internationally if the burden of administration is worth the returns. (Yes I understand to speak to an accountant for further info just wanted to clarify the basics before I do so) Appreciate all feedback thanks!

 

Citizenship isnt a factor for tax. And what does estate tax law have to do with this, who died?

 

So if I am not a US citizen I can invest in stocks the same way as if I were one just because i'm an Australian Citizen? And no one, just wanting to understand if its an issue when time comes.

 

What you think you know is probably wrong and you dont know what you dont know.

Ask your accountant how dividends and capital gains on us shares will be taxed. Listen to their advice. And dont argue with them unless you are quoting from the ato website or legislation. Though if your paying them by the hour, go for it.

 

- CG is taxed same as Oz shares (capital)
- dividends are taxed same as unfranked dividends (income)
- yes US estate tax if held in individual name is apparently a thing. Company / Trust not so imho. Seek specific advice on this point if it concerns you

 

Definitely there are things to thing about re investing in US assets and with the knowledge base here hopefully some clarity can be found. Of course, obtaining professional advice is a must.

-Does the US offer a CG discount like here? If not, is this material as the treaty exists?

-Estate tax is real, however I am not sure exactly how it works percentage-wise? Interestingly, for shares it is easy to sell them to pay an estate tax, but how would this work for property?

Is the estate tax ontop of any CG tax payable on those profits?

 

Not material, as an AU tax resident you are liable for Australian CGT only.