Filing 1040NR as an "expatriate"

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Fug1
Posts: 57
Joined: Sun Mar 09, 2014 12:00 pm

Filing 1040NR as an "expatriate"

Post by Fug1 »

Canadian citizen/resident and former green card holder here. I filed Form 8854 the year after I gave up my US green card, so the IRS knows I should no longer be taxed in the US on worldwide income.

I'm filing Form 1040NR for the first time as an "expatriate". I'm curious, why is there no distinction in this form between US and non-US persons? Not that this applies to me, but why would I need to tell the IRS if I've sold cryptocurrency during the year (one of the new questions on the 1040NR) if I wouldn't be taxed on that sale in the US?
nelsona
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Re: Filing 1040NR as an "expatriate"

Post by nelsona »

Many non-residents who do not have treaty protection on cap gains, still must report their US-sourced gains and pay tax, even on 1040NR.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Fug1
Posts: 57
Joined: Sun Mar 09, 2014 12:00 pm

Re: Filing 1040NR as an "expatriate"

Post by Fug1 »

Thanks Nelson, that makes sense. I suppose if the non-resident had cryptocurrency in a US exchange, those gains would be considered US-sourced. Still, it seems wrong for an expatriate with treaty protections on capital gains to need to answer a question about their sale of cryptocurrency. I wonder how the IRS would take it if I just didn't answer that question. I'm not planning to test those waters, since it doesn't apply to me anyway.
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