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Author: bperk369 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: cap gains taxes Date: 10/13/1997 1:31 PM
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My father in law has been watching how well my portfolio has been doing
since I first learned of the Fools. Now he is getting ever more interested
and has, what is to him, a very important question for you guys. He is born
and raised Bolivian and wants to know if he were to invest in the American
stock market, would he be liable for capital gains tax as the rest of us are
or are there special taxes set up for people like him? Any info that you
can give us on this would be greatly appreciated. Fooling around in La Paz.
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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 508 of 121061
Subject: Re: cap gains taxes Date: 10/15/1997 10:28 AM
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<<He is born
and raised Bolivian and wants to know if he were to invest in the American
stock market, would he be liable for capital gains tax as the rest of us are
or are there special taxes set up for people like him? Any info that you
can give us on this would be greatly appreciated. Fooling around in La Paz.>>

I assume that your dad will remain in Bolovia while he is investing. That being the case, he would be considered a non-resident alien. His interest and dividend income would be subject to a 30% flat tax (or lower tax treaty rate...but I'm not familar with any tax treaties with Bolovia...and am too lazy to look it up), but capital gains will generally NOT be subject to US taxes.

For additional information on aliens, check out IRS Publications 519 (dealing with the taxation of aliens), and Publication 901 (dealing with tax treaties). You can order theses publications by calling IRS at 1-800-TAX FORM. Or you can read/download the Pubs if you visit the IRS web site at: http://www.irs.ustreas.gov

Good luck...
Roy

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