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Does a foreign investor need to file 1040 if there is only loss on Form K1?

A foreign investor only received a K1. On K1, there are dividends and other income and short and long term capital losses.

 

The short/long term capital losses are more than the dividends and other income. Does he still need to file 1040NR? Thanks.

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3 Replies
DaveF1006
Expert Alumni

Does a foreign investor need to file 1040 if there is only loss on Form K1?

Yes, he would still need to report the K-1 information even though his short/long term capital losses are more than the interest or dividends. The reason is that interest, dividends, and  short/long term capital losses are reported in different sections of the return. 

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Returning Member

Does a foreign investor need to file 1040 if there is only loss on Form K1?

Thanks Dave for your reply. His interest and dividend income is less than 10k. In that case, does he still need to file tax return? I sort of remember there is a minimum income to file federal tax.

DaveF1006
Expert Alumni

Does a foreign investor need to file 1040 if there is only loss on Form K1?

No he will need to report these on his 1040 NR. What you are referring to is that if a taxpayer files and uses the standard deduction, he/she would not have a filing requirement if the income was below the standard deduction amount. Those filing a 1040 NR are not eligible to claim a standard deduction thus this income still needs to be reported. 

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