What is the US tax implication. If my buddy (a non-US citizen) residing oversea trades US index futures with IB. Does he have to file any tax papers ?
as far as i know he would need to file a w8-ben form. then he only would have to pay taxes on capital gains in his home country. on dividends there is still a 15% witholding. maybe there is a way to get that back from the irs but i have no idea how - never tried that. regards
Have him carefully read the following, including click-throughs, regarding non-residents trading in U.S.-based accounts: http://www.greencompany.com/EducationCenter/GTTRecTraTypNonResident.shtml
I am having the same issues. I thought it may work if you set up a deleware company and not pay tax, but you have to pay federal tax, does anyone know how to get around paying federal tax? I live outside the USA. thx