I've previously filed a 3520 for my Canadian TFSA's (which are now closed).
However for my 2016 return (yes I'm starting early) I will still need to file a 3520 as I received over $100k as a gift from my parents (who are non US citizens/residents) into a foreign bank.
There's a few threads on here on how to fill in 3520s but those are all from the perspective of it being for a TFSA/trust. Does anybody have any info on how to complete the form from the perspective of a gift? i.e. which parts of the form apply and which don't etc.
Anybody has experience of filing a 3520 for gift versus TFSA
Moderator: Mark T Serbinski CA CPA
We have mentioned many times the need to file a 3520 for a foreign gift (usually from an estate).
Pretty straightforward. Follow the instructions.
The gift is not taxable.
Pretty straightforward. Follow the instructions.
The gift is not taxable.
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
My post did not say:
"Will I still need to file a 3520 as I received over $100k as a gift from my parents".
Instead it said:
"I will still need to file a 3520 as I received over $100k as a gift from my parents".
Thus I was not asking about the need to file one, but how to, if you had read further my question then goes on to say "i.e. which parts of the form apply and which don't etc."
I have found previous posts on how to fill it the various parts when it is being filed for a TFSA but not how to fill in the various parts when it is being filed for a gift, and it wasn't clear to me from the instructions.
"Will I still need to file a 3520 as I received over $100k as a gift from my parents".
Instead it said:
"I will still need to file a 3520 as I received over $100k as a gift from my parents".
Thus I was not asking about the need to file one, but how to, if you had read further my question then goes on to say "i.e. which parts of the form apply and which don't etc."
I have found previous posts on how to fill it the various parts when it is being filed for a TFSA but not how to fill in the various parts when it is being filed for a gift, and it wasn't clear to me from the instructions.
I was merely pointing out that this issue has been discussed.
You seemed unsure that it had been a topic -- I did NOT conclude that you were unsure that you needed to file it.
I AM sure that since you have completed the onerous task of filing 3520 for TFSA, I'm confident you will be able to figure out from the instruction what to fill in for a foreign bequest.
Generally an estate of a foreign person (which is created at the moment of death) is not considered a foreign trust unless it contained a trust, or if death triggered the creation of trust.
if you recieved the bequest through a trust, fill out part III only.
if it was directly from an individual or their estate, fill out part IV only.
and watch the tone.
You seemed unsure that it had been a topic -- I did NOT conclude that you were unsure that you needed to file it.
I AM sure that since you have completed the onerous task of filing 3520 for TFSA, I'm confident you will be able to figure out from the instruction what to fill in for a foreign bequest.
Generally an estate of a foreign person (which is created at the moment of death) is not considered a foreign trust unless it contained a trust, or if death triggered the creation of trust.
if you recieved the bequest through a trust, fill out part III only.
if it was directly from an individual or their estate, fill out part IV only.
and watch the tone.
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