I bought a house in Canada last year. Obviously, this involved giving some money to a lawyer to hold in trust for a while during the process, and the bank now collects/remits property taxes along with the monthly mortgage payments.
I'm just getting to my US taxes now and want to be clear on the reporting requirements:
- My understanding is that there are no 3520 requirements, because these payments would all be considered Fair Market Value transfers.
- Should I tick the box on schedule B that asks if I made a transfer to a Foreign Trust?
Any need to put these things on FBAR?
Schedule B Trust Question and FBAR
Moderator: Mark T Serbinski CA CPA
-
- Posts: 41
- Joined: Sat Jan 03, 2015 8:58 pm
Re: Schedule B Trust Question and FBAR
Let me rephrase my question in hopes of getting a better response. I'm sure this is a common situation, but I can't find anything remotely helpful online:
Would an escrow account held by a realtor in Canada meet the IRS definition of a "trust"?
What about escrow payments made to the bank for them to pay taxes?
Would an escrow account held by a realtor in Canada meet the IRS definition of a "trust"?
What about escrow payments made to the bank for them to pay taxes?
Re: Schedule B Trust Question and FBAR
If you have an RRSP, RRIF, etc, you should be ticking that box in any event. Ticking the box does not commit you to filing 3520, and since you have concluded it does not require 3520, there is no harm in ticking the box.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
-
- Posts: 41
- Joined: Sat Jan 03, 2015 8:58 pm
Re: Schedule B Trust Question and FBAR
Okay thanks for that, Nelsona