This is a great question that many foreign investors struggle with! I'm also a European investor in US stocks and went through this same confusion last year. Even though your stocks don't currently pay dividends, you'll still need to submit the W-8BEN form to your broker. This form serves as your certification that you're a non-US person for tax purposes, and most brokers require it regardless of whether your current holdings pay dividends or not. The reason is that the form establishes your tax status for your entire investment account. Your stocks might start paying dividends in the future, or you might buy dividend-paying stocks later. Having the W-8BEN on file from the beginning prevents any complications down the road. For capital gains when you sell, the good news is that as a non-US resident, you generally won't owe US capital gains tax on your stock sales. This is typically covered by the tax treaty between your European country and the US. You'll only need to report and pay taxes on those gains in your home country according to your local tax laws. I'd recommend getting the W-8BEN filed sooner rather than later - it's valid for 3 years and will give you peace of mind that your tax status is properly established with your broker.

I went through this exact same situation a few months ago as a non-US investor from Canada. Even though my stocks didn't pay dividends at the time, my broker still required the W-8BEN form to establish my foreign tax status. The key thing to understand is that the W-8BEN isn't just about current dividend income - it's about establishing your overall tax classification with your broker. This becomes important for several reasons: your stocks might start paying dividends later, you might purchase dividend-paying stocks in the future, or there could be other US-source income events that require proper withholding. When I eventually sold some of my positions, I didn't have to pay any US capital gains tax thanks to the Canada-US tax treaty. I only had to report the gains on my Canadian tax return. The W-8BEN had already established that I was a non-resident alien, so there were no complications with the broker or any unexpected withholding. My advice would be to go ahead and submit the W-8BEN form now, even before you need it. It's valid for three years and will prevent any issues down the road. Most brokers make it pretty straightforward to complete through their online platforms, and it's much easier to do it proactively rather than scrambling to get it done later when you actually need it.

This is such a common source of confusion! I went through the exact same thing last year. The key thing to remember is that the IRS often sends identical Letter 6475 forms to both spouses on a joint return, but this doesn't mean you received double payments. Here's what I did to figure it out: I pulled up my bank statements from March-April 2021 (when the third stimulus payments were issued) and searched for deposits from the IRS or U.S. Treasury. I found exactly ONE deposit that matched the amount on both our letters - not two separate deposits. So even though we both got letters showing the same $2,800, we only received one household payment of $2,800. When I entered the Recovery Rebate Credit info on our tax return, I only used that amount once. The letters are basically just the IRS's way of documenting what they sent to your household, but they send copies to both spouses for record-keeping purposes. If you're still unsure, definitely check your bank records first - that will give you the definitive answer about how much you actually received.

I went through this exact same confusion with my spouse last year! We both received Letter 6475 with identical amounts ($1,400 each), and I initially thought we should add them together for $2,800 total. But after checking our bank statements from March 2021, I found only ONE deposit from the IRS for $1,400 - not two separate payments. The IRS basically sends duplicate letters to both spouses on joint returns as a record-keeping measure, but the payment itself is made once to the household. So definitely don't double-count it on your tax return! Pro tip: Look for deposits labeled "IRS TREAS" or similar on your bank statements from the stimulus payment dates. That will give you the clearest picture of what you actually received versus what the letters show. In our case, the letter amount matched our single deposit perfectly, confirming we should only report it once.

Has anyone dealt with this for an installment sale? I'm selling my rental property with owner financing (buyer paying me over 10 years), and I'm confused about how the bulk sales withholding works in this case. Do they withhold from each payment I receive or just the down payment?

Just wanted to add something that might help others - timing is crucial with bulk sales withholding exemptions. I learned this the hard way when selling my duplex in Illinois last year. Most states require you to submit exemption applications 10-30 days before your scheduled closing date. I waited until 5 days before closing to apply and my exemption was still being processed when we were supposed to close. We had to delay the closing by two weeks, which cost me extra carrying costs and almost killed the deal when the buyer got frustrated. The lesson: start the exemption process as soon as you have a signed purchase agreement, not when you're getting close to closing. Even if you think you might not qualify for an exemption, it's worth applying early because the worst case is they deny it and you're back to the standard withholding anyway. Also, some states have emergency or expedited processing for exemptions if you're close to closing, but they usually charge extra fees (mine was $150 for expedited processing in Illinois). Much better to plan ahead!

Just a heads up - if you use payment apps like Venmo, PayPal, Cash App, etc. to receive payments, new rules require them to send 1099-K forms if you receive over $5,000 in a calendar year. This was supposed to be $600 but they increased the threshold again. Keep track of these payments yourself rather than relying on the apps to report correctly!

Great advice from everyone here! One additional thing to consider - since you're dealing with potentially sensitive content, you might want to think about business structure down the road. While you can definitely start as a sole proprietor (which is what you are by default), if your income grows significantly, you might want to consider forming an LLC for liability protection and potential tax benefits. Also, make sure you're keeping digital copies of ALL your records - income receipts, expense receipts, bank statements showing business transactions, etc. The IRS can audit up to 3 years back (longer in some cases), so having organized digital records will save you major headaches if that ever happens. I use a simple spreadsheet but there are also apps like QuickBooks Self-Employed that can help track everything automatically by linking to your bank accounts and categorizing transactions. One last tip: set aside 25-30% of your income in a separate savings account for taxes. This covers both income tax and self-employment tax. It's better to save too much and get a refund than to owe money you don't have come tax time!

Don't forget about foreign stocks if your dad had any! My mother inherited some Canadian company stocks from my father, and there were special rules about foreign securities that almost caused us to miss out on significant tax advantages. The step-up basis applies, but there can be currency conversion considerations too. The broker should be handling this, but it's worth specifically asking how they're determining the stepped-up basis for any foreign investments. In our case, they initially only adjusted for the stock price change but missed the currency fluctuation component.

I'm sorry for your loss, Aisha. Going through this process while grieving is incredibly difficult, and I can relate to feeling overwhelmed by all the financial details. One thing I haven't seen mentioned yet is the importance of getting multiple copies of the death certificate from the funeral home or vital records office. Each brokerage will likely want an original or certified copy, and if your father had accounts at several firms, you'll need quite a few. I learned this the hard way when we had to wait weeks for additional copies while the estate settlement was delayed. Also, keep detailed records of everything - dates you contacted each brokerage, names of representatives you spoke with, and any reference numbers they give you. Some brokerages are much faster at processing these requests than others, and having good documentation helps if you need to follow up or if there are any discrepancies later. The step-up basis will definitely help reduce future tax burdens when your mom eventually sells any of these investments, so it's worth taking the time to get it done properly. Wishing you and your family the best as you navigate this difficult time.