K-1 for foreign trader

[alientrade]

Guys,

I wonder if anyone knows anything about this issue.

Last year, i was a member of a US LLC, daytrading the US markets and executing my trades from Europe.

I am being paid out on a K-1. I wonder if that means i am liable for US taxes, or could i simply ignore the US and pay taxes to the government that i am residing in?

Any advice would be deeply appreciated.

 

[Directional]

you should ask for a W8-BEN for exemption from US taxes as a foreign resident

 

[alientrade]

you should ask for a W8-BEN for exemption from US taxes as a foreign resident

Thanks Arbitrageur,

I know about the W-8 BEN. I have also received conflicting advice on this from accountants. Some of them are telling me that since it is a K-1, it is considered US source income and is liable for taxation in the USA. Some other firms are telling me their foreign traders dont pay tax on their income.

I have no idea which is accurate.

 

[Directional]

i have never paid US tax on trading i've done with US brokers, whether that was for US instruments or not. You need to talk to the brokerage in the first instance i'd think to make sure they've done your paperwork correctly.

If you are a US citizen however, AFAIK you are liable for US tax wherever you live in the world as the IRS taxes US citizens on global income wherever you are living.

 

[alientrade]

i have never paid US tax on trading i've done with US brokers, whether that was for US instruments or not. You need to talk to the brokerage in the first instance i'd think to make sure they've done your paperwork correctly.

If you are a US citizen however, AFAIK you are liable for US tax wherever you live in the world as the IRS taxes US citizens on global income wherever you are living.

Were you simply trading through a US broker, or were you also a member of the US LLC?