Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Nonresident Income and Deductions

Taxation of Nonresidents

Capital Gain or Loss

(Out of Scope, For Information Purpose)

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 appropriate level.

Form 1040NR, Capital Gains or Losses From Sales or Exchanges of Property