can a non us resident trade in the us stock market? and how taxes can be paid?

Question

can some one in a foreighn country trade us stocks. and does that one need to pay taxes and how?
thank you

Answer 1

The gains realized by a non-resident alien or foreign corporation from the sale of stocks and other securities is not subject to US tax. The dividends are subject to 30% withholding unless the foreign person is a resident of a country that has a treaty with the US lowering the withholding rate. See Section 871(a)(2) of the Internal Revenue Code.

Answer 2

Yes a non us resident can trade in the us stock market.
Taxes will be NRA ( non-resident alien tax)
If the security is non US sourced income then he/she will have to pay the tax unless there is a DTT ( double taxation treaty) with the persons home country and US is in place.

Answer 3

If rented, did you file 1040 with schedule E? If yes, 1040NR, 4797 and schedule D because you will owe income tax and depreciation recapture. if rented, but you opted for 30% in tax straight from the rent, then just 1040NR with schedule D. If un rented, then just 1040NR with schedule D. Max rate is 15%, but AMT will kick in. You can deduct property taxes on the 1040NR. Will the 10% withheld at closing cover the tax or not? Y'Know, I hate when people come back and add more information. Yes, the Brit can do an installment sale, though he has to recapture any depreciation in year 1. On the installment sale, he has to pay taxes over the next X years--which can make the 10% withheld at time of sale interesting.

Answer 4

if your out of the country you dont have to pay taxes, unless you have a tax id number and you can buy stock through your bank

Answer 5

Yes they can. But they can only trade with a proprietary trading firm. No regular brokerage account for indians in US. However Prop firms are far better for traders than brokers in terms of rates. Please visit tradingglobalmarkets.com. i have traded with them and they are good. They also provide other 24 exchanges to trade from including forex.