Capital gain for nonresidents who lived in the US

Technical topics regarding tax preparation.
#1
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Everywhere I read. I get that the capital gain for nonresident who lived in the US for more than 183 days is at 30% fixed rate unless the treaty defines a different rate. However, my software (ProConnect by Intuit) produced an error that says "For efile purposes, capital gain on Schedule NEC, Line 9, 30% column, is not allowed." This happened to countries such as Singapore that do not have a treaty with the US, for countries that do such as Japan, China, France, Canada, the error disappears. I am wondering if it is a bug in the software, or I did something wrong.

This is to report stock again for nonresidents on schedule NEC of form 1040-NR.

Thanks.
Please consider visiting this post where my question at the end has not been answered yet:
viewtopic.php?f=8&t=12065, thanks!
 

#2
sjrcpa  
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The error is saying you can't efile the return. It is not saying the 30% rate is wrong.
 

#3
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sjrcpa wrote:The error is saying you can't efile the return. It is not saying the 30% rate is wrong.

sjrcpa: thanks for the reply. Given the backlog, paper file is hopeless, and also I do not see the point of paper filing: who gets the benefit from the paper filing? Does anything see an issue if I change the tax rate to 30.01% in favor of the IRS to e-file?

sjrcpa, I am not arguing with you, I am just asking questions and trying to understand the rationale.
Please consider visiting this post where my question at the end has not been answered yet:
viewtopic.php?f=8&t=12065, thanks!
 

#4
sjrcpa  
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I did not sense you were arguing with me.
I also don't like to paper file anything if it can be avoided.
I guess you can try your idea and see what happens. Good luck.
 

#5
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Given the backlog, paper file is hopeless


Not hopeless, just delayed.

who gets the benefit from the paper filing?


Government does, because they get a tax return. The taxpayer does, because he satisfies his filing obligation. Same benefits as e-filing.
 


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