I Bonds at TreasuryDirect

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worryfreeinvestor
Posts: 144
Joined: Thu Mar 24, 2005 6:17 pm
Location: Seattle, WA

I Bonds at TreasuryDirect

Post by worryfreeinvestor » Thu Jul 14, 2005 1:25 am

A desperate question from one who fears inflation...

A "U.S. Person" can invest up to $30K annually in a US savings bond that has an inflation-adjusted, real return. It's called an "I Bond". One opens an account directly with the US Treasury via a service called TreasuryDirect. (If only the Bank of Canada had such a service for investors!) However, one must be a "US Person", which 8 USC 1101(a)(20) defines as a Legal Permanent Resident and 8 USC 1324b(a)(3) defines as protected individuals such as refugees (mostly Salvadoran contras from the Age of Reagan, as I read it).

Anyway, I figure a Canadian on a TN1 or HB does not cut the mustard. Does anyone know of a loophole?

nelsona
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Post by nelsona » Thu Jul 14, 2005 2:24 am

The treasury department as generally viewed US persons as those who are tax residents (and would include resident aliens, like you). Your definition (hastily found in google, no doubt) probably has nothing to do with the Treasury, but rather National Security issues.

IRS definitions talk of a US person as a 'resident' makingno distinction in that definition between an 'alien resident' and a 'lawful permanent resident', while such distinctions are made elsewhere.

IRC sec 7701

There are many TNs and Hs <i>et al</i> who buy I-bonds etc.

Only an alien living outside US would be prevented from buying these bonds, which is similar to the proscription on CSB purchases.

<i>nelsona non grata... and non pro</i>

worryfreeinvestor
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Joined: Thu Mar 24, 2005 6:17 pm
Location: Seattle, WA

Post by worryfreeinvestor » Fri Jul 15, 2005 1:11 am

Thanks, that is great news. I'm glad I asked. My info came from the horse's mouth, i.e. the TreasuryDirect help desk. I've got quite a little e-mail thread going with a lady there and she referred me to the relevant sections of the U.S.C.

barb1948
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Joined: Fri Jul 01, 2005 9:19 am

Post by barb1948 » Fri Jul 15, 2005 9:19 am

Regarding the Series I bonds and EE Bonds: A U.S. person can acutually purchase $60,000 in the I's and the EE's per year. It is a little know fact that you can purchase $30,000 over the internet, which are called electronic purchases, and you can purchase $30,000 called paper bonds.. They are trying to get away from paper bonds, but until they do --they can still be bought...mostly from a Bank. You can go to www.Treasury Direct and scroll around to find 'How to purchase paper bonds.'. Barbara

worryfreeinvestor
Posts: 144
Joined: Thu Mar 24, 2005 6:17 pm
Location: Seattle, WA

I-Bonds

Post by worryfreeinvestor » Tue Feb 14, 2006 3:11 pm

What if I lose my job and visa and have to move back to Canada? Do you think I have to cash in my I-Bonds or does the fact that I was a tax-resident when I purchased them mean that I can keep them?

nelsona
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Post by nelsona » Tue Feb 14, 2006 3:18 pm

Once you have them, they are yours to keep (same rule for CSB if you leave canada).

They will only be taxed where you LIVE.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

worryfreeinvestor
Posts: 144
Joined: Thu Mar 24, 2005 6:17 pm
Location: Seattle, WA

Post by worryfreeinvestor » Thu Feb 16, 2006 11:24 am

Thanks again, nelsona. Because the TreasuryDirect help desk gave me bad advice before, with reference to who is a resident in its eyes, can I ask you to please post the legal/regulatory reference that will allow me to keep the I-Bonds if I go back to Canada?

nelsona
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Post by nelsona » Thu Feb 16, 2006 1:05 pm

Your on your own there.

However, The treasury dept only says who can BUY bonds, and cannot FORCE anyone to sell them.

and since the treaty specifically discusses the tax treatment of bonds of one country held by residents of another, there is no issue.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

rg1495
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canadian commuter

Post by rg1495 » Mon Feb 20, 2006 2:59 pm

Nelson, Can a canadian commuter who works in US buy these bonds as well?...I live in canada and work in US on H1b.

nelsona
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Post by nelsona » Mon Feb 20, 2006 7:12 pm

Probably not, your a non-citizen living outside US... I don't sell bonds, the treasury doies, ask them.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

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