How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Robin D. Your Own Question
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13312
Experience:  15years with H & R Block. Divisional leader, Instructor
14155347
Type Your Tax Question Here...
Robin D. is online now
A new question is answered every 9 seconds

Dear Tax Professional, -US Resident that has dividend income

Customer Question

Dear Tax Professional,
For Non-US Resident that has dividend income and capital gain distributions, is it considered income not effectively connected with a US trade or business? If so, is it possible to elect it as effectively connected with a US trade or business, so they could be taxed the same way as US Resident? Also, once it is elected, is it a must to follow the same rule in subsequent years?
Thank you!
Submitted: 5 months ago.
Category: Tax
Expert:  Robin D. replied 5 months ago.

Hello

The Dividends are Fixed, Determinable, Annual, or Periodical. You must be engaged in a trade or business during the tax year to be able to treat income received in that year as effectively connected.

If your only U.S. business activity is trading in stocks, securities, or commodities through a U.S. resident broker or other agent, you are NOT engaged in a trade or business in the United States.

You are required to click a positive rating if I am to be credited with the response.
You have to actively click on a rating and click submit. Smiley Faces or Stars.

Expert:  Robin D. replied 5 months ago.

Checking to see if you responded

Related Tax Questions