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Dear Tax Professional, -US Resident that has dividend income

Customer Question
Dear Tax Professional, For Non-US Resident...
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: 1 year ago.Category: Tax
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6/8/2016
Tax Professional: Robin D., Senior Tax Advisor 4 replied 1 year ago
Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15,875
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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.

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