It is puzzling why our poster would be concerned over his responsibilities about getting a gift, but be completely unaware of his responsibilities for the holdings he already has.
Oh well....
US Permanent Resident - Canadian gift of 100K$ from family
Moderator: Mark T Serbinski CA CPA
... realize that our poster has been a member of this forum for EIGHT YEARS!!! hard to imagine he didn't know the requirements of 8891. and thus the back-filing FBAR 6 year requirement does apply in full to him.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
Correct, i have been a member of 8 years but I am not logging in every week on this site obviously.
FBAR:
We got our Green Cards in 2009. So, I would need to Back fill FBAR for 2009, 2010, 2011 and 2012 correct? I also read that it has to be mail to a different address than the 1040.
I took a look at the form. It seems to be trivial. Any I should know or tips/hints?
8891:
I will need to fill this form for every year/person/plan back 6 years ago. In the instructions, it is written: "Do not file Form 8891 by itself." I already sent my 1040 for 2012, how should I proceed.
FBAR:
We got our Green Cards in 2009. So, I would need to Back fill FBAR for 2009, 2010, 2011 and 2012 correct? I also read that it has to be mail to a different address than the 1040.
I took a look at the form. It seems to be trivial. Any I should know or tips/hints?
8891:
I will need to fill this form for every year/person/plan back 6 years ago. In the instructions, it is written: "Do not file Form 8891 by itself." I already sent my 1040 for 2012, how should I proceed.
You would need to do FBAR every year you filed 1040. green card has nothing to do with it.
You cannot back-file to make the election which is the key. If you never filed 8891, you need to seek professional help I'm afraid, as the time period for making the election expired in December, and you will need a "Private Letter Ruling" to make this. Otherwise, you are on the hook for taxes and paenalties for not sheltering your account. In other wosrds, by not filing an 8891, you underreported your taxes to IRS, and you can't fix this without an expensive letter.
To back-file 8891 -- if you could -- you would attach to 1040-X ammendment form. Your accountant will ahve to take care of this.
Your comment about visting this site desn't make much sense , since even when you visit and asked questions you did not follow through.
You cannot back-file to make the election which is the key. If you never filed 8891, you need to seek professional help I'm afraid, as the time period for making the election expired in December, and you will need a "Private Letter Ruling" to make this. Otherwise, you are on the hook for taxes and paenalties for not sheltering your account. In other wosrds, by not filing an 8891, you underreported your taxes to IRS, and you can't fix this without an expensive letter.
To back-file 8891 -- if you could -- you would attach to 1040-X ammendment form. Your accountant will ahve to take care of this.
Your comment about visting this site desn't make much sense , since even when you visit and asked questions you did not follow through.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
After carefully looking at the "gift" situation, it turns out that it is not a gift.
We have someone in our immediate family in Canada that has a company. That person own 100% of that company.
That company wants to lend us a 100K$ loan at 1.5% interest per year paid once a year. Also, that loan may not be wired in a single lump sum but it will be rather "on demand" by slice of 10/25/50K$.
So, from our perspective, this is NOT a gift but rather a personal lean from a foreign company...
How we should handle that? I pretty sure that this amount will not be taxed since it a loan but what I need to be careful for here?
Thanks.
We have someone in our immediate family in Canada that has a company. That person own 100% of that company.
That company wants to lend us a 100K$ loan at 1.5% interest per year paid once a year. Also, that loan may not be wired in a single lump sum but it will be rather "on demand" by slice of 10/25/50K$.
So, from our perspective, this is NOT a gift but rather a personal lean from a foreign company...
How we should handle that? I pretty sure that this amount will not be taxed since it a loan but what I need to be careful for here?
Thanks.
You are getting into murky territory. a under-market rate loan is considered a gift (just not worth the entire principal).
You need to have solid documentation that you will pay it back -- a contract. and it goes on the comapny's books, so it will need to be re-paid when comapny is sold/wound-up etc. Its an asset for the company.
Seems an awful lot of hassle for you to pretend its not a gift.
You need to have solid documentation that you will pay it back -- a contract. and it goes on the comapny's books, so it will need to be re-paid when comapny is sold/wound-up etc. Its an asset for the company.
Seems an awful lot of hassle for you to pretend its not a gift.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best