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

When filling a w-8...

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

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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

Accountant's Assistant: Is there anything else the Expert should be aware of?

Hmmm It is for trading stocks and securities with TD Ameritrade

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Answered in 4 minutes by:
10/6/2017
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,111
Experience: Taxes, Immigration, Labor Relations
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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: 33,111
Experience: Taxes, Immigration, Labor Relations
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Customer reply replied 9 months ago
trading stocks
Customer reply replied 9 months ago
this would be to open an account w td ameritrade
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, IRS Enrolled Agent, CFP(R),
Category: Tax
Satisfied Customers: 2,463
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Phone call session started
Customer reply replied 9 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?

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Customer reply replied 9 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.

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Customer reply replied 9 months ago
what is the affidavit?

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

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Customer reply replied 9 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.

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Customer reply replied 9 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.

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Customer reply replied 9 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.

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Customer reply replied 9 months ago
okay thank you very much

You are very welcome!

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