Taxation of Nonresident Aliens Investors in U.S. Stocks?

Learn about how nonresident alien investors are taxed on their U.S. stock holdings.

Nonresident aliens are individuals who are not U.S. citizens or permanent residents (green card holders) and who do not meet the substantial presence test.

In this video you will learn about:

-- Who a nonresident alien is
-- Taxation of capital gains upon sale
-- How dividends are taxed
-- U.S. gift tax on gifts of U.S. stocks
-- U.S. estate tax in the event you die owning U.S. stocks
-- Taxation of transfers of U.S. stocks to a company or trust

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Hi! I am Jimmy Sexton, LL.M. – Founder & CEO of Esquire Group. I founded Esquire Group with the objective of helping and inspiring wealthy families, investors, entrepreneurs, and high-level executives obtain and gain control over and protect their wealth, via strategic wealth planning.

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--------------------------------------------------DISCLAIMER--------------------------------------------------------
This video is prepared for educational purposes only. This video is not legal, tax or any other type of advice. Each individuals’ circumstances are different, you should seek legal and/or tax advice to address your specific situation and any questions you may have.

[sgill]

This is amazing. So basically trading stocks there's no tax.

[corblimey]

Wow great information. Thank you so much!

[henryterranauta]

Good stuff and very explicit 👍🏼👍🏼👍🏼👍🏼👍🏼👍🏼👍🏼

[Lav]

Hi, I am a Canadian. I sold all my US PTP shares in 2023. I have just learned from my broker that I have to file non-resident US tax return. What forms do I have to file ? Thanks for the video.

[eduardosoares]

Congrats for the video.

I'm not a US citizen or resident.

If i own a non-US-company who owns 100% of a single-owner-US-LLC and this american company buy and hold stocks and then periodically receive DIVIDENDS from these shares, WILL THE COMPANY BE TAXED IN THE US?

[nicholasstarpoli]

As a nonresident Alien myself I find it extremely difficult to get accepted to use platforms to trade (futures, options, forex) because they continue to say that I need to provide citizenship in at least one country. Wondering how I can explain how this is not needed

[julianpeller]

Thank you very much! I love your content and I have just subscribed. I am a nonresident with a W8-BEN using TDA. I have stocks, and TDA is withholding my taxes for dividends. I would like to buy bonds, but I fear it would make me file a form with the IRS. Is TDA acting as a withholding agent for bond taxes similar to what it's doing with dividends? What is the taxation for nonresidents regarding bonds?

[kosinus_]

I am a non-US resident and have a brokerage account in the USA. I want to donate (transfer) funds from iShares to the US market and Worldwide to my son. He is also a non-resident of the United States, he has an account. Please answer a few of my questions: 1) Is it not possible to give papers between personal accounts? Can I just create a joint account with my son and make a transfer there? 2) There is no gift tax in my country. Will I have to pay tax if I make a transfer to a joint account? A non-US resident may not pay tax if you donate shares of US companies. Does this apply correctly to my funds? 3) Do the US tax authorities have questions after inheriting funds in a joint account? Thanks a lot!

[rafaelcastilhotessecini]

If I am an international student in the U.S (F-1 visa) and invest through Robinhood, will I be able to keep investing through Rh even after I graduate and move back to my home country?

[attilanotatilla]

What about REITS? How are they taxed for non-resident aliens?

[xoxoDeki]

Thanks for the helpful content! Just to reconfirm, since I am a non resident alien I do not have to file taxes every year right? My brokerage firm is witholding 30% tax on my dividends. For the last 8 years I have not been filing taxes but have been buying and selling stocks.
Recently found out that I should be filing the 1040-NR form but your video says I am not required to file taxes. Would really appreciate it if you could clarify that for me!

[Flandria]

Very interesting video . What jurisdiction (non US) would be suitable to set up a company that will be accepted by the US broker and permits the opening of a bank account??

[mgeorgy]

I'm in Australia and my question is in relation to selling a PTP (which was purchased by my company)
There is 10% a withholding for selling a PTP as it's an Australian company (I understand that)
Australia has a free trade agreement with the US, which would mean the 10% withheld would be a tax credit.
Would I use that withheld 10% for my Australian company tax return? or would I also still need to file a K-1 tax form (for my company)?

[michayng]

Im NOT US citizen. How to reduce/ eliminate income tax on dividend ? 30% is a large amount.

[TBasianeyes]

What about options premiums? They are classified as capital gains not income so I assume that they are taxed at 0%.

[Hammer_Plays]

A non-US citizen residing outside USA and providing bookkeeping/consulting services remotely to a US based company as a freelancer, is it a US source income? Is any withholding tax applicable in this case? Thank you for your help!

[andygriesbach]

If I form a trust and move my US stocks to the trust, Can I spend as much time as I would like visiting the US without tax consequences?

[quantcooker]

When you say portfolio assets, do it include the cash sitting in the brokerage account? are these cash subjected to estate tax too? Thanks a lot!

[jjun]

What about PTP (public traded partnership)? Specifically 1446f, is there any way around this or at least get some tax returns as the 10% on sale amount is brutal

[cperota]

How much you charge one hour consultation? I am looking to setup an llc or other smilar structure that allow to trade us stock and include in that structure closed famil member members when I pass away?