If you are a non-resident alien (NRA) investing in the U.S., understanding capital gains tax for non-resident aliens is essential. Non-resident aliens are taxed differently from U.S. citizens. Generally, capital gains from the sale of U.S. real estate or certain business interests are subject to tax, while gains from stocks or securities may be exempt. However, the rules can be complex and depend on the type of asset, how long you held it, and tax treaties between the U.S. and your home country.
Taxation of Capital Gains for Non-Residents
Non-residents face special rules on capital gains tax. For example, profits from selling U.S. real estate are taxed under FIRPTA (Foreign Investment in Real Property Tax Act), which requires withholding and reporting. Other capital gains, like from stocks or bonds, might not be taxed if you don’t have a U.S. trade or business. But different rules apply if your investments generate income considered effectively connected with a U.S. trade or business. Consulting an expert helps avoid costly mistakes.
U.S. Tax Filing from India: Handling Capital Gains
If you’re an Indian citizen investing in the U.S., you must file U.S. taxes properly, especially when you have capital gains. Our team specializes in U.S. tax filing from India, helping NRAs report gains, claim treaty benefits, and avoid double taxation. The U.S.-India tax treaty often reduces withholding rates on certain income, but only if you file the right forms and follow rules. We guide you through this process with clarity and care.
Indian Investment in the U.S.: Navigating Capital Gains
Many Indians invest in U.S. stocks, real estate, or businesses. For these investors, understanding capital gains tax and non-residents rules is key. You need to know how U.S. taxes apply, how to report earnings in India, and how tax credits work between both countries. A2N Advisory helps Indian investors comply with both U.S. and Indian tax authorities, ensuring your investments remain profitable and tax-efficient.