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

Foreign Student Comprehensive Practice

Part I: Ben Hopf

Filing Requirements (continued)

What must Ben do with his stock transaction?

A Does not need to be reported, he is in a nonresident alien status
B Use the Form 8949 Sales and Other Dispositions of Capital Assets to report the sale.
C Review the applicable Tax Treaty for the tax rate and report on the Schedule NEC, Tax on Income Not Effectively Connected with a U.S. Trade or Business
D If the Tax Treaty has a rate of zero, the item does not need to be reported on the tax return