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Taxes on a publicly traded partnership fund (DBC), as a Non Resident of US?

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!)

Reply to
Erwin
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  1. The name of your investment was changed. Invesco dropped the word Powershares and replaced it with Invesco.
  2. Yes, it is organized as a publicly listed partnership.
  3. It is nothing more than than an ETF tracking fund.
  4. As such, your income is not ECI. Your K-1 should not have any business income or loss.
Reply to
Alan

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