r2i forum

apple123;9161Hi

Need you help on some questions.

I came back to India in Jan 2006. So I think I'll file the tax return as NRA.

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I presume that you do not have a GC or USC and do not meet substantial presence test and hence you are saying you will file NRA,

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I sold off some stocks who had multiple cost basis.( I bought them at different times with diff prices). Few questiosn here.

1) How do I report the cost basis on the US tax ? Is it average of all the costs ?
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You can list each sale transaction as individual sale and total up the costs for that security and that will be your cost basis. If this security sold was purchased on different dates, one has to separate, long term and short term sales and report the two separtely in appropriate sections on schedule D.

An NRA is not taxed on capital gains and ideally would not receive a 1099-B. Did you submit a W8BEN to brokerage? If not, you should attach an explanation to taxes as to why you received 1099-B, if you did.

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2) Do I file it in Schedule D? How to report multiple cost basis in that form ?
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One, an NRA does not report capital gains on stocks. Second, have you looked at schedule D? I would suggest be more specific in your question and look at schedule D.

When a security is sold, it has one cost basis, not multiple cost basis.

If you sold 800 shares of abc for 12345 net of commisions, then your sale proceeds are 12345. Now if you bought these at 800 shares in 3 separate installments, say 100, 300 and 400 shares, you total up the cost and that will be your cost basis for 800 shares.

Alternately, you can report this as 3 transactions of 100, 300 and 400 shares by breaking up the sale proceeds of 12345 in those ratios.

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3) I believe 1040-NR cannot be filed online. Is that true ?
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Yes, to my knowledge.


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4) Don't want to spend any tax filing fees.Looking for a cheaper option.
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It is good to be frugal.

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5) Will I be US taxed for Short term and long term capital gain for the US stocks I sold ? I am RNOR in India for 2006-2007 and 2007-2008.
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See earlier responses.

apple123;9393Desi,

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I purchased this stock at 3 different times but sold all of them at the same time. So I guess the cost basis will be the sum of all costs. (All were held for more than 1 year). Right ?