Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax
This answer was rated:

When filling a w-8 form claim of treaty benefits what

Hello, JA: Hello. How can I...
Hello,
JA: Hello. How can I help?
Customer: when filling a w-8 form claim of treaty benefits what tharticle for Mexico
JA: The Expert will know how to help. Please tell me more, so we can help you best.
Customer: I am currently filling a w-8 form and I dont know which is the provisional article to claim the tax treaty benefits for mexico
JA: Is there anything else the Expert should be aware of?
Customer: hmmm It is for trading stocks and securities with TD Ameritrade
Show More
Show Less
Ask Your Own Tax Question
Answered in 4 minutes by:
10/6/2017
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,319
Experience: Taxes, Immigration, Labor Relations
Verified

Please specify for which type of income are you claiming tax treaty benefits?
Is that gains from trading stocks or dividends or any other types of income?

Please also verify that you are a resident of Mexico and NOT US citizen and do not hold a green card?

Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,319
Experience: Taxes, Immigration, Labor Relations
Verified
Lev and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 2 months ago
trading stocks
Customer reply replied 2 months ago
this would be to open an account w td ameritrade
Chad CFP ®
Chad CFP ®, Certified Financial Planner(R), Pro
Category: Tax
Satisfied Customers: 847
Verified
Phone call session started
Customer reply replied 2 months ago
when will I recieve the call?

Here is a tax treaty between Mexico and the US

https://www.irs.gov/pub/irs-trty/mexico.pdf

You will realize capital gains when trading stocks - so please refer to Article 13 Paragraph 7

Gains from the alienation of any property other than property referred to in paragraphs 1 through 6 shall be taxable only in the Contracting State of which the alienator is a resident.

You will need to reference THIS article on form W8BEN

Questions?

Ask Your Own Tax Question
Customer reply replied 2 months ago
i missed your call could you call again

Sorry - your call was assigned to another expert - and I am not eligible to call.

But I will be happy to address all your concerns here.

On form W8BEN

https://www.irs.gov/pub/irs-pdf/fw8ben.pdf

line 10

Special rates and conditions (if applicable—see instructions): The beneficial owner is claiming the provisions of Article and paragraph
of Article 13 Paragraph 7 the treaty identified on line 9 above to claim a ZERO % rate of withholding on (specify type of income):
Capital gain from trading stocks.
Explain the additional conditions in the Article and paragraph the beneficial owner meets to be eligible for the rate of withholding

I am a resident of Mexico and not US citizen. Gains from the alienation of any property other than property referred to in paragraphs 1 through
6 shall be taxable only in the Contracting State of which the alienator is a resident -thus should not be taxed in the US
.

Let me know if that helps.

Ask Your Own Tax Question
Customer reply replied 2 months ago
what is the affidavit?

An Affidavit is the legal way to swear that your declaration or statement is true and correct.

Ask Your Own Tax Question
Customer reply replied 2 months ago
if i am a student should I write anything in my Letter of explanation for US Mailing address in the second part substancial preccense test?

If you are a student - you spent more than 183 days in the US - you will be considered as a resident alien for stock trading purposes - and will not be able to claim that exclusion.

You may mention that you are a student on F1 visa and stay in the US.

Ask Your Own Tax Question
Customer reply replied 2 months ago
I thought students where exempt from the presence test, is that incorrect?

That is correct for some purposes - but not for capital gains from trading.

Following is IRS article which explains

https://www.irs.gov/individuals/international-taxpayers/the-taxation-of-capital-gains-of-nonresident-alien-students-scholars-and-employees-of-foreign-governments

You still may claim tax treaty exclusion - but may not be excluded as a student.

Ask Your Own Tax Question
Customer reply replied 2 months ago
Should I write it on the W-8 explaining I am a student or would that be Ilegal?

That makes no difference - as you are referring to the tax treaty.

And you are a nonresident alien based on the tax treaty.

If you feel more comfortable - you may add that as a note.

There is nothing illegal.

Ask Your Own Tax Question
Customer reply replied 2 months ago
okay thank you very much

You are very welcome!

Ask Your Own Tax Question
Ask Lev Your Own Question
Lev
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,319
30,319 Satisfied Customers
Experience: Taxes, Immigration, Labor Relations

Lev is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,336 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,906 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
My question is about taxation of capital gains on equities,
Hello, My question is about taxation of capital gains on equities, like stocks, options, futures of F1 students. Here the facts:1. F1 student for 4 years in the US2. student does not get any income wi… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
847 satisfied customers
I'm working to understand capital gains tax for California
I'm working to understand capital gains tax for California property purchased 4 years ago. It's a primary residence, purchased 4 years ago for $385k with $285k principle outstanding. Expected sale price of $630k … read more
abci168
abci168
Principal
27 satisfied customers
I'm canadian who want to understand capital gains tax rate.
Hi, i'm canadian who want to understand capital gains tax rate.I have a rental house that i bought at 500K. I sold it after 9 yrs at 1100K. With the money, i bought a new house (will be my primary res… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,581 satisfied customers
Resident Alien - Married couple - one is US citizen and the
Resident Alien -Married couple - one is US citizen and the other is Canadian but is US resident alien.If couple purchases a house as their primary resident, is there any tax implication outside of the… read more
Lev
Lev
Tax Advisor
30,319 satisfied customers
What rate of withholding is applicable for a domestic
What rate of withholding is applicable for a domestic partnership with 2 foreign partners upon the selling of a rental property in US. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
If a forefinger sells a property in the US, does he or she
If a forefinger sells a property in the US, does he or she you pay taxes on the gross sales, or just on the profit and what percentage. Thanks… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
2,885 satisfied customers
Is the sale of customer list a capital gain or ordinary income?
Is the sale of self-created intangibles, such customer lists, digital files, web sites, etc subject to capital gain or ordinary income treatment?… read more
Lev
Lev
Tax Advisor
30,319 satisfied customers
Are you familiar with Capital Gain taxes on rental property?
Are you familiar with Capital Gain taxes on rental property? … read more
Lev
Lev
Tax Advisor
30,319 satisfied customers
I sold a rental property at a loss (no capital gains);
I sold a rental property at a loss (no capital gains); however should I pay the $133,000 on the principal of my house I owe 166,000 at 2.8% or buy another rental? … read more
Lev
Lev
Tax Advisor
30,319 satisfied customers
Estate capital gains tax rate for 61, single, unable to
estate capital gains tax rate for 61, single, unable to work, is claimed as a dependent form sister,only income collects $500 month stipend from gov., which pays for health insurance and meds. is gett… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Do Florida residents have to pay State capital gains taxes
Do Florida residents have to pay State capital gains taxes on the sale of FL business &/or personal assets?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,581 satisfied customers
What tax form is filed to report dividends paid by US Corp?
What tax form is filed to report dividends paid by a US Corp which is owned by a Canadian Corp? I think it might be 1042S. I want to know the rate of WH.… read more
abci168
abci168
Principal
27 satisfied customers
A Nonresident Alien just took steps towards becoming a a
A Nonresident Alien just took steps towards becoming a a U.S. Permanent Alien in June 2017. He is an airline pilot with a tax home in Hong Kong. He has a Mandatory Provident Fund established with the … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,906 satisfied customers
Is a non-resident alien who has paid capital gains on a
Is a non-resident alien who has paid capital gains on a property required to pay a gift tax if the money is given to a child. (grown) The donor has no income in 2016. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My mom is a nonresident alien, she spends 1 month out of a
My mom is a nonresident alien, she spends 1 month out of a year in the US. If the has a brokerage account in the US, and buys and sells domestic stock, are capital gains, short or long, tax exempt?… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
How do you report nonresident alien (someone does not have
How do you report nonresident alien (someone does not have green card or non US citizen) 's capital gain on sale of stock… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,581 satisfied customers
My friend is a nonresident alien student in the US. If he
My friend is a nonresident alien student in the US. If he receives a wire transfer from his home country, am I correct that is nontaxable income, and does it matter whether the money comes from his ow… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Regarding Form 1040NR US nonresident alien income tax
regarding Form 1040NR US nonresident alien income tax return: where do you report U.S bank interest on the form… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x