Line 8 of Schedule B (Part III - Foreign Accounts and Trusts) must be checked if "did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If "Yes," you may have to file Form 3520. See instructions on back".
We will have to file 3520 because my wife received a Canadian inheritance of more than $100,000. However, neither the above quote nor the instructions on the back mention checking the box for anything other than a "foreign trust". I assume this means that I should not check the box, even though a 3520 will be filed for her this year. Is that correct?
1040 Schedule B Part III re distribution from foreign estate
Moderator: Mark T Serbinski CA CPA
Typically Cdns ticjk this box every year, since most have an RRSP.
In your case, even if you don't have an RRSP, the foreign estate is considered a trust, so I would check it.
Either way, you are going to file 3520.
In your case, even if you don't have an RRSP, the foreign estate is considered a trust, so I would check it.
Either way, you are going to file 3520.
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