Smith wrote:

- quote -

No it is incorrect. Your F-1 visa makes you exempt from the
substantial presence test. It does not make you exempt from
taxation. As a nonresident alien you would pay progressive
tax rates on any effectively connected income and the flat
30% rate or lower if a tax treaty exists on other US source
income. Capital gains would only be taxed if you were
physically present in the US for at least 183 days in the
year. The tax rate would be 30%.

- quote -

If you are present in the US for one day while holding a
valid F-1 visa that year counts.

- quote -

It's any part of any five years. No clock reset. As an
aside, I'm not sure it's a lifetime, but it is certainly a
long time.

--
Alan
http://taxtopics.net

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I am sorry about my poor English. I have read IRS
publication 519 and a lot of other material on the internet,
but I am still confused, maybe someone here can clarify a
few things.

My situation is this: I am from a EU-country and I am
considering studying in the USA on an f-1 visa. Properly for
less than five years. I have two futures-brokerage accounts
– one in my home country and one in the USA. My income is
100% from trading futures. My understanding is this: If I
stay for less than five years there is no tax on capital
gains and a 30% flat rate tax on all other income (I have no
other income). If I stay for more than five years I till be
taxed like a USA citizen on my worldwide income. Is this
correct?

If I stay for one day during the year the whole year will be
counted towards the five years. Does this apply is I visit
during 2004 via the visa waiver programme to visit different
universities and then start to study on the f-1 visa in
January 2005?

Is the five years a lifetime total or is it five years in a
row? If I stay in the USA for four years, go back to Europe
for two years and returns to study for another 3-4 years;
will the clock be reset for the second period?

I know this is a lot of questions, but I would be grateful
for any assistance.

Thank you,

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