Dear Ryan, I currently taking the Gauntlet Mini, but I am having problem to find the current trailing draw down. As the trailing system is using open equity, this info is crucial for us to not break the rules.
In your FAQs you have: What about people (non US citizens and non residents) that have already a brokerage account with W-8BEN filled ? Do they still need to acquire ITIN ?
I'm not familiar with tax system in USA. Requesting a ITIN means I would have to submit a tax declaration in USA every year ?
Yes you have to file a US tax return, even if no taxes are due under a tax treaty. Would just be a zero return.
As far as my understanding goes, this can not be a zero return. When one gets K1 then he/she needs to file tax return and taxes in the USA (even if he/she is located in a foreign country) The tax treaty benefit needs to be taken in the home country. Of course, this is my understanding and needs to be confirmed with a tax consultant. Is there anyone here who has filed this kind of return? or at least has knowledge about this kind of tax situation? Please reply. This Schedule K-1 and subsequent tax-filing confusion is the only thing that's holding me back from taking the Gauntlet so far.
This is clearly an tremendous constraint for non US residents / foreign people to take the Gauntlet. Sounds too much complicated and would involve to hire a tax consultant, both for to request the ITIN and also to fill all tax obligations. And not cheap, I guess. Earn3Trade says that can assist in requesting the ITIN for a fee of 500 USd and that's just for starting. Then every year one has the cost of a tax consultant to fill tax declarations, even if the account is blown up, I guess. I wonder if all companies like TST, etc. also have this constrain.
This is not tax advice but from my understanding capital gains have an exception where they are only taxable in the US under certain circumstances and the NRA is in the US for more than 183 days. Assuming these foreign partners would not be in the US more than 183 days, they would not be subject to tax on their capital gains from futures trading. The income does still have to be reported on a 1042-S even if it is not taxed.