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-   -   How are non-residents aliens taxed on Capital Gain (shares), Dividends and Interest? (https://www.askmehelpdesk.com/showthread.php?t=339453)

  • Apr 9, 2009, 09:15 AM
    confused1272
    How are non-residents aliens taxed on Capital Gain (shares), Dividends and Interest?
    Hi,

    I lived in the US from 2000-2004. I've lived outside the US since 2004. I held a green card for 6 odd years before surrendering it on 31-Dec-07. For the years 2004-2007, I filed as tax resident even though I was out of the country, because I held a green card.

    Its time to file my 2008 tax returns - and because I no longer have a green card, I presume I can file 1040-NR; and it is due on Jun-15, instead of Apr-15.

    I have no US earned salary/wages and typically only make 2-3 business trips per year (i.e. 2-3 weeks) to the US. With these, would appreciate some help understanding tax status of :

    b) my rental property in US -
    c) some mutual fund dividends
    d) some bank interest
    e) some capital gains (mixed short/long term) from selling shares.
    f) made some cash donations to US based charities in 2008

    How would all of the above items be treated from a tax perspective? Are they all tax exempt?

    Thanks
  • Jun 8, 2009, 02:40 PM
    AtlantaTaxExpert
    If you surrendered your Green Card on 31 December 2007, then you are correct in filing Form 1040NR with a Schedule E for the U.S. rental property.

    The mutual fund dividends and capital gains may or may not be taxable; it depends on your home country and whether there is a tax treaty with the U.S.

    The bank interest more than likely is tax-exempt.

    The donations may be deductible as an itemized deduction against the income from the rental property.

    Contact me at [email protected] if you want professional help filing your return.
  • Jun 10, 2009, 01:53 PM
    IntlTax

    I agree you should file Form 1040NR.

    The taxability of mutual fund distributions depends on what the mutual fund invested in and may depend on a tax treaty.

    Capital gains on personal property unrelated to any U.S. business (or to your rental) should be exempt.

    Bank interest should be exempt.

    Charitable deductions should be allowed.

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