Stocks and Mutual Funds
Ownership of U.S. stocks or mutual funds requires an Individual Tax Identification Number (ITIN). The brokerage firm generally requires this, as the instrument may generate taxable interest and/or dividends.
Stocks and Mutual Funds
Sales of stocks and mutual funds must be reported annually on the Form 1040NR Non-resident Alien Income Tax Return to recognize gains and losses.
Holiday Home
In addition to having an Individual Tax Identification Number (ITIN) and filing an annual Form 1040NR Non-Resident Alien Income Tax Return and corresponding schedules, you may be subject to backup withholding at the time of sale:
When you sell your U.S. holiday home, the Internal Revenue Service recognizes this sale as a taxable event and may require 10% of the sales price be withheld at the time of the sale.
What if I owe less than the 10% required, how do I get my refund?
- Filing annual tax return (after 31st December) - allow up to 12 months
- Withholding Certificate - allow up to 3 months
Applying for a reduced or eliminated withholding requirement before the sale date.
Disclaimer:
Any tax advice contained in the body of this letter
was not intended or written to be used, and cannot
be used, by the recipient for the purpose of avoiding
penalties that may be imposed under the Internal
Revenue Code or applicable state or local tax
law provisions
FOREIGN NATIONALS OWNING AND SELLING PROPERTY IN THE U.S.