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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16580
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Good morning, I am a French citizen and resident, and non-resident

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Good morning,
I am a French citizen and resident, and non-resident for US tax purposes. I file with the IRS as I get a pension from the US. I have equities in the US. My question: I know I have to report the dividends I earn, but do I have to report the capital gain/loss in the US (from US companies)?
Thank you for your help

Megan C :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

Megan C :

How are you today?

Megan C :

Generally a foreigner is taxed in the U.S. on effectively connected income and fixed and determinable annual or periodic income. ECI arises when you have an operating business in the U.S. ECI also includes gain on the sale of real property or the sale of stock in a U.S. corporation owning real estate.

Megan C :

Page 22 of publication 519 reads "If you were in the United States for less than 183 days during the tax year, capital gains are tax-exempt unless they are effectively connected with a trade or business in the United States during your tax year."

Megan C :

Page 20...I'm sorry

Megan C :

http://www.irs.gov/pub/irs-pdf/p519.pdf

Customer:

Therefore, as I have not spent 183 days in the US, and as these gains are just from the sale ofstock I had bought, I should not pay tax on them. But do I need to report them anyway?

Megan C :

No, you would not report them. You only report your dividends

Customer:

Thank you!

Megan C :

You're welcome. Is there anything else I can assist you with today?

Megan C :

If not, please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

No, this is all,

Customer:

thank you*

Megan C :

You're welcome. Please rate using the feature at the bottom of your screen

Megan C and 2 other Tax Specialists are ready to help you
Herve,

Merci Beaucoup for the positive rating. Please come back and visit me any time you have a question that needs answered. It was a pleasure working with you today.

Thanks again!