I have a relative who is a foreign citizen who wants to open a brokerage account in the US for investment. He would receive in this account multiple forms of income:
- interest income
- Schedule K-1 (from Master Limited Partnerships)
- capital gains (from stock sales held for at least one year)
Under the tax treaty with Peru, what amounts should be automatically withheld in this account by the broker?
Would a non resident need to file a US tax return for such income? What amount of US taxation would each of the three types of income I am identifying above receive?