Patrick Michael Posted September 29, 2015 Report Share Posted September 29, 2015 I am about to lose my 1040NR virginity and want to make sure I'm correctly understanding what I have researched.Canadian citizen and resident sold a partial share of a vacation home located in the United States. It was not a time share, they actually owned a condo with two other couples. The condo was never rented out. They will have a long term gain of about $12K from the sale. From my research it looks like, since this was the sale of U.S. real property, it is taxed as a long term capital gain "connected with the conduct of a U.S. trade or business." As such they do not need to fill out Schedule NEC and there is no additional tax on the gain that flows from that schedule. They do not have any other U.S. sourced income so the gain will not be taxed as they are in the zero tax bracket for LT capital gains.They have not yet applied for an ITIN so they have to file a form W-7 along with the 1040NR. I have the 8288-A showing the amount withheld that they will be sending in with the return.It seems pretty straight forward. Is there anything I am overlooking?Thanks. Quote Link to comment Share on other sites More sharing options...
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