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I am a nonresident alien living in the U.S. on a visa and own

Customer Question
a share in a C-Corp...
I am a nonresident alien living in the U.S. on a visa and own a share in a C-Corp which I founded here. Do I face any adverse tax implications in case I leave the U.S. / am not here for 183 days a year? Specifically, I am concerned about getting taxed on the theoretical value of my equity
Submitted: 5 years ago.Category: Business Law
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5/3/2012
Business Lawyer: WiseOwl58, Attorney replied 5 years ago
WiseOwl58
WiseOwl58, Attorney
Category: Business Law
Satisfied Customers: 4,080
Experience: Senior Associate at White & Case LLP
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You would have to.pay US income.tax on any US sources income, unless.it.is covered by a tax treaty, in.which case it is exempt. Check IRS publication 955 for details.of tax.treaties by country and type of income.

Good luck to you. Please press the Accept button. Thanks.
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Customer reply replied 5 years ago

Sorry - I'm afraid this doesn't answer my question. I understand what I owe in case I generate any income, and I am aware of the tax treaty.

 

My question was: I own 20% of a business that is worth $2.5M on paper based on a fundraising round. If I leave the U.S. or violate the 183 day rule, will I be taxed on this theoretical value of my equity (based on whatever tax rate applies)? In other words: Would me leaving the U.S. trigger a taxation event, resulting in me owing tax despite not selling my equity, simply b/c I would be leaving the U.S. tax jusisdiction?

Business Lawyer: Richard - Bizlaw, Attorney replied 5 years ago
Richard - Bizlaw
Category: Business Law
Satisfied Customers: 10,703
Experience: 30 years of corporate, litigation and international law
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You personally will not be taxed on the basis of your equity ownership whether or not you remain in the US. The only tax that will arise with respect to your equity is if you sell your shares and you have a capital gain. Until the sale occurs, there will be no tax on the equity.

 

If this answer is responsive to your question, please accept it. That is how we are compensated. I would also be appreciated if you provided feed back on your view of the answer. Finally, if the answer was especially helpful you can provide a bonus. If I can be of further assistance or you have other questions in the future you can ask for me and reach me at this site.

This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.

Richard - Bizlaw
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