geneius wrote:

- quote -

Whether or not you are eligible for including capital gains
or losses on page 1 of the 1040NR or page 4 (not effectively
connected income) will depend on the facts and circumstances
of your status.

Nonresident alien students and scholars and alien employees
of foreign governments and international organizations who,
at the time of their arrival in the United States, intend to
reside in the United States for longer than 1 year are
subject to the 30% taxation on their capital gains during
any tax year if during such tax year (usually calendar year)
they are present in the United States for 183 days or more,
unless a tax treaty provides for a lesser rate of taxation.
This assumes that such capital gains are not effectively
connected with the conduct of a United States trade or
business. These capital gains would be reported on page 4 of
Form 1040NR and would not be reported on a Schedule D
because they are being taxed at a flat rate of 30% or at a
reduced flat rate under a tax treaty. Capital losses are not
allowed.

As just about all F-1 students intend to reside in the US
for longer than one year and assuming that you actually
spent at least 183 days in the US for any purpose, you would
not be able to make use of your net capital loss.

All of the above assumes that you are not in the business of
buying and selling securities.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I am a student on a F1 visa and I have saved to build a
small portfolio. I have losses for 2005 amounting to ~$800.
As a student with a US source of income, I am confused
weather I can take the Capital Gains deduction.

P.S., the loss does exceed 2% of my AGI

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >