handling of NR4 tax slip

[kap0]

Hi,

I am a Canadian working in US. For my Canadian mutual fund
holding in a non-registered account, I received a NR4 tax
slip. This tax slip reported in box 14 Income code = 11.
According to explanation on back of tax slip, code 11
translates to estate and trust income.

For filing US 1040 tax return, I have 3 questons:
a) I think I need to declare this income as either interest,
or dividend, or capital gain, or (something else). Does
anyone know which category this estate or trust income belongs
to ? The tax rates may be different for different types of
income.

b) The actual dollar amount is reported in box 26, but again
it does not indicate what type of income. Also, in box 17 for
non-resident tax withheld, it reported 0. Whether this be
interest, dividend or captital gain, I thought that some amount
of tax need to be withheld. Yes/No?

c) The actual amount of income is reported in Canadian $, but
the date the income was distributed is not reported on this
tax slip. Can I use the average Canadian to US. exchange rate
for year 2004 (from BankofCanada web site) to report this
income in US $?

Thanks for your help.

[nelsona]

To find out what type of income, you should be looking at your account statement.

If no tax was withheld, I suspect that it was a capital gains distribution, as this would only be taxed in US.

To find out what day this transaction occured, again you have to look at your statement.

An NR form, just like your old T4s, only has limited information.

By the by, even if you had not received this NR statement, you would still have to reprt the income to IRS, for example, when you sell these funds (no NR will be sent for that), so get used to reading your statements


<i>nelsona non grata... and non pro</i>