I've recently moved from the U.S. to France and my investment company has put my account "on hold" to avoid tax complications on their side (common practice these days). That means I can continue to hold the funds, and dividends will be automatically reinvested, but they won't let me buy new shares of anything. There is another company that will allow me to invest like a normal customer while living outside the U.S., but they cannot manage the mutual funds that I currently hold. So to close my current account, I would have to liquidate everything, resulting in massive capital gains tax. I'm in the lowest possible tax bracket (grad student), but the liquidation on my taxable (non-IRA) account will total around $120K, with gains around 70%. So two questions:
- Is there some way to move from one fund to another without paying the capital gains now?
- Does it make any difference that I am being forced to move the money--i.e., can I claim some kind of circumstantial exemption, showing that the money has been directly reinvested?
There is some discussion in a similar question, which is relevant and helpful for my situation, but in that case the shareholder is not under time pressure to move the funds.