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If a non resident alien invests in a US investment partnership (aka, hedge fund) how does the federal taxation work?
I have a question regarding federal taxation. If a non resident alien invests in a US investment partnership, how does the taxation work?
Great question! Non resident aliens who invest in US investment partnerships are subject to federal income tax on their share of partnership income that's sourced to the US. However, the tax rate differs based on the type of income and the source of the income.