1. Life Insurance benefits taxable in the U S or California?
2. Closing of deposit accounts in Canada (joined for security). Monies transferred to Estate account. Reporting of closing accounts to IRS and FBAR
any problems doing that or is there something else that needs to be done?
3. Selling of property in the future . I believe CRA withholds 25% for non resident. Any tax implications for me with that in the U S?
Thanks in advance for the help.
Mom's Passing questions.
Moderator: Mark T Serbinski CA CPA
This is what I found out so far please correct me if I'm wrong.
1. Life insurance policy itself is not taxable. Only the interest earned on the policy is deemed taxable income.
2. Report on 8938 that account was closed during the year in Part 1 and also on Part V 3b. On the FBAR report as normal. Then don't report account since it has been closed. Still haven't seen any info on this yet. Hope someone can shed some light on this one.
If Estate value is under 5.4 million there is no estate tax or estate tax return required in the U.S. However when the property sells in the
future any capital gains will be taxed.
3. Still think it applies 25% withholding when property is sold. Trustee needs to get a clearance certificate when a non-resident is beneficiary.
1. Life insurance policy itself is not taxable. Only the interest earned on the policy is deemed taxable income.
2. Report on 8938 that account was closed during the year in Part 1 and also on Part V 3b. On the FBAR report as normal. Then don't report account since it has been closed. Still haven't seen any info on this yet. Hope someone can shed some light on this one.
If Estate value is under 5.4 million there is no estate tax or estate tax return required in the U.S. However when the property sells in the
future any capital gains will be taxed.
3. Still think it applies 25% withholding when property is sold. Trustee needs to get a clearance certificate when a non-resident is beneficiary.