Rules for Inheriting Foreign Property T1142

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
cat
Posts: 46
Joined: Tue May 24, 2005 1:40 pm

Rules for Inheriting Foreign Property T1142

Post by cat »

I am a US/Canadian dual citizen living in QC for 30+ years. My brother died in the US in 2016 and I expect to receive some money (maybe $30K) this year, now that (the estate) his home is sold, all the bills paid and things are settled.

Will I have to report this as a distribution (i.e. inheritance) received from the foreign estate of my brother and fill out a T1142 – Information Return in Respect of Distributions from and Indebtedness to a Non-Resident Trust? Does it matter if I leave the money in my US bank? I already file a T1135. How about if I transfer it to my bank in Canada or am I required to report it regardless of where the money is deposited?
nelsona
Posts: 18311
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I believe if you read the instructions carefully, you will see that beneficiaries in estates are exempt from T1142 reporting.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
Post Reply