CFC Majority Shareholder Renounces Mid-year

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victoriaguy
Posts: 54
Joined: Sun Oct 26, 2014 12:03 am
Location: Victoria, BC, Canada

CFC Majority Shareholder Renounces Mid-year

Post by victoriaguy »

Hi there,
My mother is the sole shareholder of a CFC earning oil royalties. She renounced her US citizenship in June 2015. I'm trying to determine if she files form 5471 for the entire year, or just for the 5-6 months she was a citizen.

Ie, I assume the income statement would include only income and expenses incurred during the time she was a citizen, and that the Balance Sheet would reflect accounts' balances on the date of renunciation. Is that correct?

Am I also correct to assume I would not treat her renunciation as a disposition of her shares, but show her as still owning those shares at the end of the year?

Thank you very much for any thoughts...
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