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I hold units in Powershares DB Commodity Index fund (DBC), and so I've received a K-1 from them detailing their income during the year.

I was a US Non-Resident Alien / foreign investor during the tax year. I have unfortunately Not received a 1042-S from them (probably because there were 0 distributions during the year, and therefore no withholding.) (Or maybe it was lost in the mail!) so I have no clues other than the K-1.

I'm trying to figure out whether my income from this fund (DBC) - a publicly traded partnership / commodity pool - is treated as Effectively Connected Income (ECI) or not.

  • If it IS ECI, I would have to pay taxes on income and capital gains similar to a US resident
  • If Not ECI, I would have to only pay 30% tax on Dividends (FDAP)

My only other income from the US is from passive investments in shares/ETFs long-term (I usually only pay the 30% taxes on dividends through withholding)

(If I had known this particular fund was a partnership and made taxes complicated, I would never have invested! I learn something new about taxes every year!)

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