Form 1040NR for Foreign Trusts: Income Tax Reporting for Foreign Non-Grantor Trusts
Special DNI Calculations for Foreign Trusts, Tax on Trust Accumulations, and Coordinating With Other Foreign Reporting Requirements
Recording of a 110-minute CPE webinar with Q&A
This webinar will provide tax advisers and compliance professionals with a thorough and practical guide for reporting foreign trusts with U.S. owners or other U.S. nexus on Form 1040NR. The panel will detail the events and transactions that require reporting, discuss filing obligations for owners and beneficiaries of foreign non-grantor trusts, review the form in depth, and help participants navigate seemingly contradictory form instructions.
- Residence and classification rules for foreign trusts
- “Control test”
- “Court test”
- Grantor vs. non-grantor trusts and U.S. tax reporting rules for FDAP and ECI
- Reporting foreign non-grantor trusts on Form 1040NR
- Differences in DNI calculations between domestic and foreign trusts
- Trust accumulation calculations and tax impact on undistributed income
- Adjustments to Form 1040NR to conform to trust accounting rules
- Coordinating Form 1040NR with other foreign information reporting requirements
- Withholding obligations and Form W-8BEN
- Form 3520 for distributions
- FATCA reporting
The panel will discuss these and other important topics:
- What foreign trusts must be reported on Form 1040NR Income Tax Return?
- What are the differences in DNI calculations between foreign and domestic trusts?
- What are the modifications needed on Form 1040NR to report foreign trust FDAP income and ECI?
Jack Brister, TEP
International Wealth Tax Advisors
Mr. Brister specializes in U.S. tax planning and compliance for non-U.S. families with international wealth and asset... | Read More
Mr. Brister specializes in U.S. tax planning and compliance for non-U.S. families with international wealth and asset protection structures which include foreign trusts, estates and foundations that have a U.S. connection, as well as foreign companies wanting to do business in the U.S. He also specializes in foreign investment in U.S. real property, and other U.S. assets, pre-immigration tax planning, U.S. expatriation matters, U.S. persons in receipt of foreign gifts and inheritances, foreign accounts and assets compliance, offshore voluntary disclosures, FATCA registration, executives working and living abroad and annual reporting. He has been widely published, in addition to speaking at numerous international engagements.Close
Lucy S. Lee
Akin Gump Strauss Hauer & Feld
Ms. Lee focuses her practice on international tax and estate planning for individuals and families. She represents high... | Read More
Ms. Lee focuses her practice on international tax and estate planning for individuals and families. She represents high net worth and global clients on a wide range of sophisticated matters, including inbound and outbound investments (including anti-deferral regimes and tax treaties), family wealth preservation, succession planning (including use of domestic and foreign trusts), tax compliance in the cross-border context, and pre-immigration tax and expatriation tax planning. She also advises funds and foreign financial institutions on U.S. tax and compliance (including FATCA), and represents taxpayers in administrative controversies with the IRS and in competent authority proceedings.Close
Lawrence M. Lipoff, CPA, TEP, CEBS
With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private... | Read More
With more than 30 years of experience, Mr. Lipoff specializes in the delivery of domestic and international private client services to enable high net worth individuals and families to maximize their new or generational wealth. He provides strategic advice to his clients and their closely-held businesses in the areas of income tax planning and compliance, estate planning and administration services, consultation regarding formation of family trusts and philanthropic structures. He is a frequent lecturer and author of articles published through professional forums on topics that include preparation of 1040/1041 & 706/709 returns, IRA/pension distribution, domestic and international asset protection, business succession, generation-skipping transfers, S corporation and fiduciary taxation including foreign trusts, alternative minimum tax, Chapter 14, family limited partnerships, international estate planning and administration, grantor charitable lead trusts, captive insurance companies, private placement life insurance and carried interest estate planning for private equity and hedge fund principals.Close
Ms. Krauthamer focuses her practice on federal, state and international tax matters involving high net worth... | Read More
Ms. Krauthamer focuses her practice on federal, state and international tax matters involving high net worth individuals, public and private companies and not-for-profit organizations. She regularly advises foreign individuals and companies on U.S. tax matters, including planning for investment in U.S. real estate. She reviews complex corporate mergers and acquisitions, and structures partnerships, joint ventures and limited liability companies in both the domestic and cross-border contexts.Close