Has anyone nonresident gone through the k1 process for owning a partnership interest? Having no other onshore income and no tax treaty, how much very approximately should be paid (refunded)? A tax guy told me coming from a non-treaty country, I have no way getting 30% dividend withholding refunded so filing 1099-1040nr is pointless, is that true? If true, does similar logic also apply to k1
I am not a tax professional . I am a trader and a U.S. citizen. Most traders (and partnerships) who are active enough to trade for a living take a mark-to-market Sec 475 election and net all their cap gains/losses and dividends received (or paid on shorts) into one final profit number that determines the tax due. I have no idea if your partnership makes a Sec 475 election and if that converts the nature of those dividends. Might want to ask a good CPA that understands trading.
Facing a similar issue here.. I am also non-resident alien (I actually even never set a foot in America). I merely traded a few shares (without knowing their "serious consequence") on IB, then I recently received a bunch of K-1's in the mail. All boxes are zero.. Should I even bother filling the 1040NR? Thanks.
Thanks sprstpd. Hopefully I won't get myself extradited to the US.. Also much appreciated if any tax expert on this forum could confirm this too.
If all the boxes are zero, there is no change to your tax liability. I don't know if you trust the internet when it comes to answering questions, but there are a few places where it is implied you don't need to worry about it: https://ttlc.intuit.com/questions/4203842-k1-with-all-zeros-do-i-need-to-add-to-my-personal-return https://www.quora.com/I-received-a-...-are-zero-Do-I-need-to-file-it-with-my-return https://ttlc.intuit.com/questions/3952654-k1-no-income-do-i-need-to-report