Question

Does a foreign investor need to file 1040 if there is only loss on Form K1?

Forum|Forum|3 years ago
April 16, 2023
1 reply
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A foreign investor only received a K1. On K1, there are dividends and other income and short and long term capital losses.

The short/long term capital losses are more than the dividends and other income. Does he still need to file 1040NR? Thanks.

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DaveF1006

Yes, he would still need to report the K-1 information even though his short/long term capital losses are more than the interest or dividends. The reason is that interest, dividends, and short/long term capital losses are reported in different sections of the return.

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N

nothingAuthor

Thanks Dave for your reply. His interest and dividend income is less than 10k. In that case, does he still need to file tax return? I sort of remember there is a minimum income to file federal tax.

DaveF1006

No he will need to report these on his 1040 NR. What you are referring to is that if a taxpayer files and uses the standard deduction, he/she would not have a filing requirement if the income was below the standard deduction amount. Those filing a 1040 NR are not eligible to claim a standard deduction thus this income still needs to be reported.

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