Income via Stock Market while on OPT!

[kailash174]

Hello People,

I have been following Desi OPT for a long time and am really happy to see most of them getting their questions answered here.

So, I thought this would be a good platform to actually get answers for some of the doubts I have in mind:

I plan to invest in the stock market (NASDAQ) while I am on OPT (F-1 Status). Is this type of income legal? Am I allowed to do this while on OPT?
If yes, how do I file for taxes for this extra income.??

Any help/details will be greatly appreciated!

[DesiOPTForumAdmin]

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[DesiOPT-FaceBook-Fan]

1 yes ..
2 yes ..
3 talk to u r.cpa... he will know how to do.capital.gains

[DesiOPT-FaceBook-Fan]

Yes you can invest by all means. You've to include it under 'other income' as capital gains if there's a gain in your position at year end. Good luck!

[DesiOPT-FaceBook-Fan]

https://www.facebook.com/groups/USADESIFRIENDS/

[DesiOPT-FaceBook-Fan]

I know you can invest in stocks and realize profit from stocks if you are in H1B. You can still invest in stocks in OPT not sure if you can realize profit.

[DesiOPT-FaceBook-Fan]

1. It depends
2. Yes
3. Stock Brokers will take care

[DesiOPT-FaceBook-Fan]

Yes, its legal in OPT or even as a student. You just include that in schedule D of your 1040NR ( F1's should file the form 1040NR and not 1040. Many do the wrong form if they file in H and R Block or some other online websites). If you need more info on how to fill schedule D, you can ask me when you do it. I myself carry a loss of 3600 this year thanks to penny stocks..

[DesiOPT-FaceBook-Fan]

To all those who are unaware of stock sale will be reported to IRS:
This applies to OPT, H1, F1, EAD, GC and Citizens.
-----Say you sold some Stock for $1000 and you purchased them for $900 ....(1)Couple of years back if you made that SALE, then only the Sale will be reported in form 1099B to IRS by the Brokerage Company and only not the Cost.. That means, The Cost is Zero and you made a Profit of $1000 here not just $100. ....(2) Now most of the Brokerage Firms are reporting Cost too on 1099B except in some cases....
In the (1) Case, as $1000 is a profit, if you dont report that, you will receive a Penalty from IRS for that. in (2) Case, where there is $100 gain, if you dont report it then you will get a penalty for $100 only... In both cases , the Sale is being reported...