Hello,
I have a question regarding the participacion of a FOREIGN
NON US CITIZEN in my Investment Club, how should we handle
this?
any tips?
regards
Tomas

Speaking from a bad experience, I recommend you follow Ira's
advice. I was treasurer of a non-profit organization that
hired a non-resident, non-U.S. citizen, and I did more work
in connection with that person's stuff than I did for all
the all the other "employees" combined!

Andy Hinds
Grey Rock Investment Club
Ft Collins, Colorado

iras1 wrote:
> DON"T DO IT! If the person doesn't have a green card or isn't subject to US taxation as a resident alien, the club may have to withhold taxes on any earnings allocated to this member. This is a situation that is beyond the scope of any of the investment club accounting software.
>  
>
>
> Ira Smilovitz
> Join me at InvestEd 2010
> Investor Education at Its BestTM
> Baltimore, MD August 6 - 8, 2010
> http://www.investor-education2010.org/
>  
> In a message dated 03/14/10 16:12:54 Eastern Daylight Time, tfg@bivio.com writes:
>
> I have a question regarding the participacion of a FOREIGN
> NON US CITIZEN in my Investment Club, how should we handle
> this?
>
>  
>  

Ira,
This investor is a good friend of mine from over 30 years,
he is a Mexican Citizen and lives in Mexico, so he isnt
subject to US taxation. Mexico has a tax treaty with the US
and I thought we should file a W-8BEN and that by completing
this form, the Mexican investor can claim exemption from
paying US tax on dividends and interest from shares traded
in the US, as such income will already fall under Mexico
income tax rules, this as well as Capital Gains....
We might have to file W-8 IMY for the club as well as the
W-8BEN for any foreign individual that is a member of the
partnership...

Do you know of any IC that has done it, I believe its
possible and don't really care about the paperwork so any
help would be great for me...

regards

Tomas




iras1 wrote:
> DON"T DO IT! If the person doesn't have a green card or isn't subject to US taxation as a resident alien, the club may have to withhold taxes on any earnings allocated to this member. This is a situation that is beyond the scope of any of the investment club accounting software.
>  
>
>
> Ira Smilovitz
> Join me at InvestEd 2010
> Investor Education at Its BestTM
> Baltimore, MD August 6 - 8, 2010
> http://www.investor-education2010.org/
>  
> In a message dated 03/14/10 16:12:54 Eastern Daylight Time, tfg@bivio.com writes:
>
> I have a question regarding the participacion of a FOREIGN
> NON US CITIZEN in my Investment Club, how should we handle
> this?
>
>  
>  

thank you very much!!!

iras1 wrote:
> While you seem to understand the concepts, you're off on the specifics of what you hope to achieve. A W-8BEN would be filed by your Mexican member with the investment club, not the IRS. However, according to the tax treaty between Mexico and the US, only capital gains are exempt from US taxation. Interest is subject to 15% withholding and dividends are subject to 10% withholding. This is analogous to the foreign taxes US citizens pay on dividends from some foreign corporations.
>  
> I still think trying to include someone who isn't a citizen or resident alien is a recipe for headaches.
>  
>
>
> Ira Smilovitz
> Join me at InvestEd 2010
> Investor Education at Its BestTM
> Baltimore, MD August 6 - 8, 2010
> http://www.investor-education2010.org/
>  
>  
> In a message dated 03/15/10 00:32:47 Eastern Daylight Time, tfg@bivio.com writes:
>
>
>
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>
> Ira,
> This investor is a good friend of mine from over 30 years,
> he is a Mexican Citizen and lives in Mexico, so he isnt
> subject to US taxation.  Mexico has a tax treaty with the US
> and I thought we should file a W-8BEN and that by completing
> this form, the Mexican investor can claim exemption from
> paying US tax on dividends and interest from shares traded
> in the US, as such income will already fall under Mexico
> income tax rules, this as well as Capital Gains....
> We might have to file W-8 IMY for the club as well as the
> W-8BEN for any foreign individual that is a member of the
> partnership...
>
> Do you know of any IC that has done it, I believe its
> possible and don't really care about the paperwork so any
> help would be great for me...
>
> regards
>
> Tomas
>
>
>
>
> iras1 wrote:
> > DON"T DO IT! If the person doesn't have a green card or isn't subject to US taxation as a resident alien, the clu
> b may have to withhold taxes on any earnings allocated to this member. This is a situation that is beyond the scope of any of the investment club accounting software.
> >  
> >
> >
> > Ira Smilovitz
> > Join me at InvestEd 2010
> > Investor Education at Its BestTM
> > Baltimore, MD August 6 - 8, 2010
> > http://www.investor-education2010.org/
> >  
> > In a message dated 03/14/10 16:12:54 Eastern Daylight Time, tfg@bivio.com writes:
> >
> > I have a question regarding the participacion of a FOREIGN
> > NON US CITIZEN in my Investment Club, how should we handle
> > this?
> >
> >  
> >  
>
>  
>