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Relative newbie to this board, so apologies if this question has been raised and answered earlier.

I'm a "non-resident alien", a wonderfully sci-fi title which means that the only US tax I pay on my US shares is withholding tax on my dividends. I understand the IRS assumes I'll pay capital gains tax to my "home" revenue agency. I'm glad they think that because there's no capital gains tax in my country (New Zealand), so I basically get to keep all the gains from my shares.

My wife and I also have two family trusts, which have quite significant assets. I'd like to have the trusts also invest in US shares, but I wanted to check out the tax treatment for "non-resident trusts".

Does anyone know whether a foreign trust, investing in US shares, has to pay

(a) US withholding tax on dividends? I assume it does
(b) US capital gains tax on capital gains?
(c) any other US taxes?


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