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Circus123
10-06-2008, 09:42 PM
Guys,
I just wanted to get an opinion of the gurus whether a person can deal with stock trading while on H1-B visa. Can someone point me to some documentation or laws on this? I plan to open an account with e-trade/scott trade .... Your comments are appreciated.

belmontboy
10-06-2008, 09:47 PM
Guys,
I just wanted to get an opinion of the gurus whether a person can deal with stock trading while on H1-B visa. Can someone point me to some documentation or laws on this? I plan to open an account with e-trade/scott trade .... Your comments are appreciated.

what laws are you looking for?

AFAIK, there are no restrictions on H1B holder trading a/c. They enjoy same privileges as everybody else.

Uncle sam doesnot care as long as you pay the taxes on ur profits.

Circus123
10-06-2008, 10:02 PM
Thanks

chi_shark
10-08-2008, 11:27 AM
stock trading for yourself on your personal account is no issues... if you setup a corp and do it through that corp, then you need a secondary H1 B...

Guys,
I just wanted to get an opinion of the gurus whether a person can deal with stock trading while on H1-B visa. Can someone point me to some documentation or laws on this? I plan to open an account with e-trade/scott trade .... Your comments are appreciated.

gcdreamer05
10-08-2008, 12:33 PM
One more additional question on this, say we open a trading account now and we buy shares in 2008 , but do not sell it yet (meaning no income was made in 2008), then will there be any impact or any additional filing to be made for 2008 tax returns, or how does stock trading relate to tax returns...

Alabaman
10-08-2008, 12:34 PM
I am sure you don't even have to be in the US to trade in US stocks. There are people that have never been to the US that participate actively in US stocks and just as Americans participate in some foreign markets too.

In the final analysis, most restrictions on H1B workers are stupid.

Alabaman
10-08-2008, 12:37 PM
One more additional question on this, say we open a trading account now and we buy shares in 2008 , but do not sell it yet (meaning no income was made in 2008), then will there be any impact or any additional filing to be made for 2008 tax returns, or how does stock trading relate to tax returns...

Until you sell then there is no gain nor loss. If u sell and loose, then you report the loss in your tax return...if you gain you report the gain and you are taxed accordingly.

gcgreen
10-08-2008, 03:37 PM
You do have to pay taxes on any dividends you earn. Your brokerage firm will send you an 1099 form at the end of the year detailing your income.

If you do sell stocks and otherwise have capital gains or losses to report, you will typically file a Schedule-D form along with your 1040.

To my knowledge, as long as you are a "passive" investor, there is no problem with investing. You cannot be an "active" investor when on H1-B, unless you have another H1-B that supports your "active" investment activities. Put simply, if you are buying stocks and holding on to them for a period of time before you sell, you are fine. But if you plan on becoming a day trader (very good time right now to make and lose money, with all this volatility) then you likely are an "active" investor.

I am not a lawyer, and the above is my common sense understanding.


One more additional question on this, say we open a trading account now and we buy shares in 2008 , but do not sell it yet (meaning no income was made in 2008), then will there be any impact or any additional filing to be made for 2008 tax returns, or how does stock trading relate to tax returns...

tom123
10-08-2008, 03:56 PM
Hi,

Active trader / Passive Trader hmm !!! interesting.

1) if you have money and time u can do as many trades as u like ( no restrictions ) even u can execute a trade every minute ( provided ur employer won't mind )

2) Taxes has to be reported only on closing of position ( either in capital gain / loss ) as said by others

FYI: for tax terms refer captial gains tax details ( as of now more than 1 year holding 15%, less than a year is > 15% etc., )

Hope you make some money.

sk2006
05-22-2009, 08:42 AM
Guys,
I just wanted to get an opinion of the gurus whether a person can deal with stock trading while on H1-B visa. Can someone point me to some documentation or laws on this? I plan to open an account with e-trade/scott trade .... Your comments are appreciated.

You can do stock trading on H1B.
You can own stocks. Don't you get stock options from your company?
I am doing it since 2000.

solaris27
05-22-2009, 10:29 AM
yes u can do it

puddonhead
05-22-2009, 10:47 AM
The terms "Active Trader", and "Active Investor" may sometimes denote two completely different things.

"Active Trader" (http://en.wikipedia.org/wiki/Active_trading) is one who does day trading. While this opens you up to a pandoras box of regulatory and compliance related stuff - which I would find to be too onerous as an individual - it is perfectly OK to do this in H1B from an immigration law standpoint.

The term "Active Investor" is sometimes used to refer an "Active Trader" - and at some other times loosely used in lieu of "Activist Investor" (http://en.wikipedia.org/wiki/Activist_investor). It is NOT OK for an H1B to be an activist investor.