December 17, 2008
Do I have to 1) file a U.S. tax return and 2) pay U.S. taxes for gains from the following activities?
wonder asked:
a) shorting stocks listed in U.S. stock exchanges (borrowing the stocks to be sold, and later repurchasing identical stocks for return to the lender)
b) trading stock option, such as buying calls and puts
a) shorting stocks listed in U.S. stock exchanges (borrowing the stocks to be sold, and later repurchasing identical stocks for return to the lender)
b) trading stock option, such as buying calls and puts
I am a nonresident alien (Canadian) and filed a W-8BEN. I greatly appreciate your answers. If possible, I would also like to know which documents could point me to the answers.
Filed under United States by Administrator
Comments on Do I have to 1) file a U.S. tax return and 2) pay U.S. taxes for gains from the following activities? »
See a Tax Consultant in your area. You might also try consulting a professor of finance at your local university. Be careful who you accept advice from on this issue.
you can go to and type “treaty canada” in the search box.
there you will find the Canada tax treaty signed by Jimmy Carter. go to article X and you may find your answer there.
but just a note: you almost always have to pay tax on this income at a 30% rate.
you may find info there to lower that amount.
Publication 519, page 21.
If you LIVE in Canada (meaning you are not in the US for 183 days or more), traded only for yourself, the tax requirements are as follows:
Interest income, 30% or 10 with treaty.
Dividend income 30% or 15 with treaty.
Capital gains distributions, 0%
Net capital gains, 0%.