Canadian Trust Distribution to US/Cdn citizen

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mtnman
Posts: 37
Joined: Thu Nov 15, 2012 2:06 pm
Location: Lethbridge, Ab

Canadian Trust Distribution to US/Cdn citizen

Post by mtnman »

Is a distribution from a Canadian Situs Trust whose owner, Trustee and beneficiaries are Canadians and US citizens taxable to the US citizens ? If so, how ? The distribution was reported on the 3520 and 3520A Statement of Trust Beneficiary.

The Trust paid Canadian tax via a T3. The Trust has no US source income. Does it file a 1040NR ?

Thanks for any help !!
mtnman
Posts: 37
Joined: Thu Nov 15, 2012 2:06 pm
Location: Lethbridge, Ab

Post by mtnman »

Maybe I need to clarify...the income that was reported on the t3 was capital gains on land which has been distributed to a US/CDN beneficiary. The beneficiary has reported the land distribution on 3520 and the trustee is proposing to prepare. 3520A with a beneficiary statement disclosing the land distribution.

My question is does the beneficiary have to pay tax on either the distribution or the capital gains onthe land that was distributed?

Thanks for any replies!
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