Here is my situation. I am a Canadian that went to the US for graduate school. I transferred my investments from Canada to a Raymond James firm in Madison, WI. I am now living in the Netherlands but probably only for 2-3 years and then there is a strong possibility I will move back to the US to settle. So, I didn't want to have to transfer and exchange all my investments and do it again in a couple of years.
I have no residence in the US and am not a citizen so I should not pay US taxes. Is this correct? Or since my investments are handled by a US broker does that somehow require me to pay US taxes?
2007-03-31 01:37:07 · 7 answers · asked by wright_gm 2 in Business & Finance ➔ Taxes ➔ United States
No, it is NOT correct. Even though you are not a US citizen or resident you still must pay taxes on any US source income.
If you are properly recorded with the broker as a non-resident alien your income will be subject to source withholding (generally at 30% but that can vary) and you will not need to file any tax returns.
If you are not registered with the broker as a non-resident alien you will have to file Form 1040NR returns every year and pay any taxes due. And if this is the case and you haven't been doing it there will likely be penalties and interest due for the prior years' returns.
Get a copy of IRS Pub 519 from the IRS website. Here's a link: http://www.irs.gov/pub/irs-pdf/p519.pdf It will tell you pretty much everything that you need to know.
2007-03-31 02:17:11 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Boston may be correct, but there also might be a tax treaty between the U.S. and the Netherlands which could possibly reduce or eliminate the taxes owed to the U.S.
Are the interest and dividends being expatriated, or are they being reinvested in the brokerage accounts? You need the advice of a competant tax professional - give the local KPMG office a call and see if they'll give you a freebie answer.
2007-03-31 10:47:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Tax laws are very complex. You need to speak with a tax adviser in the US and the Netherlands. They are the only people who can give you an accurate answer.
2007-03-31 08:45:57 · answer #3 · answered by ne11 5 · 0⤊ 1⤋
There are loopholes when it comes to paying taxes. You have to find them because I do not know the specifics---the person that was "training" me is deceased now.
One of his teaching is that don't start or sign anything---that it primarily what will obligate you in the Federal Court System.
2007-03-31 08:53:07 · answer #4 · answered by unknownsoldier1st 3 · 0⤊ 3⤋
is not good Mr. Canada.maybe your investment will gone and steal and took it by the broker...is very wrong you must careful it comes in the business...it is not safe maybe your money will gone away... im know you stragle diffecult now of your investment, if you feel bad of your investment and you feel there something wrong of your investment,make action before is not to late for you.Take care and God bless you...
2007-03-31 08:52:23 · answer #5 · answered by nick 1 · 0⤊ 4⤋
I Don't Know, Ay!
2007-04-03 21:20:50 · answer #6 · answered by Walt 1 · 0⤊ 0⤋
What are you talking aboot Mr. Canada?
2007-03-31 08:39:57 · answer #7 · answered by The Pale Rider 2 · 0⤊ 4⤋