interest income and capital gain

dp · Post by dp » Fri Jun 12, 2015 3:51 pm

I am a Canadian living in Canada. Please confirm or correct me:

The interest on form 1099-INT is not taxable in US based on Pub 519;

The capital gain on form 1099-DIV is not taxable in US based on Article XIII(4);

The capital gain/loss on K1 (partner's capital account) is taxable in US and should be reported on f1040nr line 14.

Thanks.

nelsona · Post by **nelsona** » Mon Jun 15, 2015 7:42 am

Correct.

The question becomes why do you, a Cdn resident, have an account in US which generates this income. US brokers are not allowed to deal with Cdn resident.

dp · Post by dp » Mon Jun 15, 2015 10:33 am

Nelsona

I opened the account when I was working in US.

I have another question:

I received f1099-DIV for my mutual fund. After I read this forum, I understand that I should receive f1042s instead of f1099-DIV. It may be because I haven't changed my address for that account. Anyway, could you please tell me how to report ordinary dividends and qualified dividends on the 1040nr form? Can I report ordinary dividends on page 4 and qualified dividends on page 1?

Thank you very much for your help.

nelsona · Post by **nelsona** » Mon Jun 15, 2015 1:53 pm

So you need to close the account.

dp · Post by dp » Mon Jun 15, 2015 2:01 pm

Nelsona,

Could you please answer the other question about the dividends? Thanks.

nelsona · Post by **nelsona** » Mon Jun 15, 2015 3:09 pm

Perhaps someone else can.