Capital Gain or Loss
Nonresident alien students and scholars are subject to 30 percent taxation of U.S. capital gains, unless a tax treaty allows a lower rate. Report this income in the Capital Gains and Losses From Sales or Exchanges of Property section of the 1040NR. If a sale of stock takes place, it should be reported regardless of whether a gain or loss occurs. Refer to Publication 901 for the table that lists the income tax rates on capital gains.
Sales of stock and other capital gain issues should be handled only by tax preparers who have certified at the Advanced level.