CAPITAL GAINS ON 1040 NR
TAXPAYER WAS NOT IN THE COUNTRY, I KNOW IT IS NOT TAXABLE . HOW DO I REPORT THIS? THANKS.
1
734
cSbHr4m0er4yUOacwZ5xHE
12/30/11 3:54pm PST
Viewed by asker 01/03/12 8:46am PST
Viewed by asker 01/03/12 8:46am PST
9 Replies
Accountant Man
Questions asked: 132
Questions answered: 10671
Points earned: 29410
Questions answered: 10671
Points earned: 29410
Accountant Community AllStar
Advisory council of Accountant community power users.
12/30/11 5:46pm PST
why is "it" not taxable? and what is "it?"
If you use Pro Series Basic I might not be able to help you. If you use Turbo Tax I might refuse to help you. All others, watch out! ;-)
12/31/11 8:22am PST
thanks accountant manl I am not sure if you saw my reply to Phoebe. she says do not report it anywhere. i shoud have made clear this is a non resident alien.
12/30/11 7:13pm PST
not in my office now. i think it is pub 519 says cap gains are not taxable to non resident alien. i am just wondering how to report this as being non taxable on 1040 R
12/30/11 8:23pm PST
if it's not taxable then why is it reported on the 1040NR? Are the assets in the US?
12/30/11 10:41pm PST
The solution
If it's not effectively connected, and the person wasn't present in the US for 183 days, I don't believe it gets reported anywhere.
12/31/11 8:11am PST
phoebe,this was my initial thought, but it does seem illogical. chinese citizen not in u.s.at during 2009. he got 1099 b, did not file, the IRS froze his brokerage account because he did not file.
oddly, he got 1099 b in 2009,but not in 2010, only the 1042 S, he got 1042 s in 09.
maybe u are right, it is not reported, but he must file. i think i will just attach the 1099 and 1042s to the return, and the copy of the statement regarding 183 days, whereby it states there is no tax on that capital gain
what do you think? thanks for input from Taxman and Phoebe
12/31/11 11:39am PST
no, no, no Not Tax man, Accountant Man. thanks for your help mea culpa :& Happy New Year from Seattle
