Close US Brokerage After India Move
ACAT transfer vs liquidate Fidelity/Schwab, export cost basis, final 1099-B, and FBAR last year.
The 60-second version
Closing a US brokerage is different from keeping it open. I export cost basis, run ACAT or sell-down, file final 1099-B year, and update FBAR last year.
Close only after you export cost basis
Many returnees close US brokerage in panic — losing cost basis history and triggering US wash-sale traps.
Option A: ACAT transfer to another US broker you keep open (if policy allows India address).
Option B: Sell all positions, wire USD to NRE, close account — India Schedule CG + US Schedule D same year.
Keep path: US brokerage after move guide if you retain the account.
Close vs keep vs transfer
| Path | US tax | India tax | Complexity |
|---|---|---|---|
| Keep open | 1099-B ongoing | Schedule FA + CG on sale | Low if broker allows |
| Liquidate + close | Capital gains US | Schedule CG + Form 67 | Medium |
| ACAT to US broker | No sale event | No India event until sell | Low |
| Transfer to India demat | Often blocked | N/A | High — rarely supported |
US brokerage wind-down sequence
Download tax lots
CSV of acquisition dates + basis from broker portal.
Choose path
Keep, ACAT, or liquidate — confirm broker India-address policy.
Place sell orders
If liquidating — mind US long-term vs short-term lots.
Wire USD
To NRE; keep SWIFT + 1099-B for Form 67.
Close + FBAR
Final FBAR year if account existed any day in calendar year.
Decision tree
Wind-down kit
- Cost basis CSV.
- 1099-B prior years.
- W-8BEN expiry date.
- Beneficiary updated.
- FBAR FinCEN copy.
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Do not update address first
Some brokers freeze trading on India address change — export data before updating.
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0 of 4 checked
ACAT to Indian broker?
Almost never supported for US-listed equities — use Indian broker for new buys only.
US tax if I sell from India?
Yes — US capital gains apply; India may tax too with Form 67 credit.
Close 401k brokerage?
Different rules — see IRA rollover guide; do not mix with taxable close.
Fractional shares?
Broker may liquidate fractions on close — small taxable event.
Inherited US stocks?
Stepped-up basis US — export estate docs before close.
Joint account with spouse?
Both sign close request; FBAR both if US person.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.