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Thanks for the information. It is very helpful.
The LLC elects to file as partnership. I have some follow-up questions:
1. I expect about 9,000usd dividend annually. I have no other income. I am single. What is my marginal tax rate after standard deduction?
2. I will make 50,000usd on capital gain at the end of the 5th year, assuming 50% property appreciation based on an initial 100,000usd investment. I will be taxed as if I am engaged in a trade or business in the U.S. What is the rough estimate on my tax liability? What will be my marginal tax rate in the 5th year? Please include the 9,000usd dividend income as well.
3. What tax form do I need to file for my own personal income on April 15th (1040NR or 1040EZ)? What other forms do I and the LLC need to file with the tax authority?
4. Could you please recommend someone who can file the returns for me in the future and talk to my LLC to establish filing requirements at the outset? I am looking for a cost-effective solution. What is the going-rate for this kind of task?
Thanks again for the help. I willl give very high rating for the quality of your responses.
4. Sorry, but we can not make recommendations of firms or individuals. One source to search by location is Find an Enrolled Agent at https://portal.naeacentral.org/webportal/buyersguide/professionalsearch.aspx
Rates vary widely so a quote should be obtained when engaging a practitioner.
3. Form 1040NR or 1040NR-EZ is used by a nonresident alien. Partnership filing is another question, but as mentioned Form 8813 will be filed by the partnership for the withholding. From the description, Form 1040 NR-EZ can be used according to the instructions at http://www.irs.gov/pub/irs-pdf/i1040nre.pdf or http://www.irs.gov/uac/Form-1040NR-EZ,-U.S.-Income-Tax-Return-for-Certain-Nonresident-Aliens-With-No-Dependents
2. For 2013 the scheduled tax rates for a single person are
15% for taxable income up to $36,250 and 28% for taxable income of 36,250 to 87,850.
1. There is no standard deduction allowed for a nonresident alien but an exemption amount is subtracted to determine taxable income. For 2011 this was $3,700 and for 2012 this amount is $3,800 and is indexed for inflation so can rise year to year.
Marginal rate should be 15% when only $9,000 per year is received and 28% when $59,000 is received; but this is subject to change by Congress.
Hope this clarifies for you.
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