I am an Indian citizen residing in India. I will be opening a cash account through IBKR and day trade in the US markets(cash only, no margin). Will the wash sales law be applicable in my case, even though there is no such law in India for Indian markets?

Edit. Do I need to file taxes in the US?

  • Will you fine a US tax return? Are you clear on what the wash sale rule actually does?
    – D Stanley
    Nov 9 at 0:50
  • I should have added that to the question also, sorry; do I need to file a US tax return? Nov 9 at 0:55
  • I have a vague understanding of that law. I will most likely be trading a fixed number of stocks, so there's a good chance that I might have to sell below the buying price several times. Nov 9 at 0:57
  • I would do some more research - if you do not have to file US taxes, the US wash sale rule is irrelevant. At worst it only defers the tax break for losses, it does not prevent them of prevent you from making loss trades.
    – D Stanley
    Nov 9 at 1:24
  • Since you are neither a US citizen (or LPR) nor physically present 183 days, you are not subject to US tax on capital gains (except for real property and possibly partnerships). If you really own (i.e. settled) at record date close and thus receive dividends, those are US-taxed (and NR doesn't get lower rates on 'qualified' dividends even if you hold rather than daytrade), so then you need to file 1040NR unless the broker withholding (reported to you on 1042S) is exactly equal to your liability, which it can be if you fill out their W8BEN correctly. Nov 10 at 1:40


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