Form 1040NR for Foreign Trusts: Income Tax Reporting for Foreign Non-Grantor Trusts
Special DNI Calculations for Foreign Trusts, Tax on Trust Accumulations, Coordinating With Other Foreign Reporting Requirements
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This course 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 form instructions that seem to be contradictory.
- Residence and classification rules for foreign trusts
- Residence based on ”control test” and “court test”
- Classification as grantor vs. non-grantor trust
- Form 1040NR reporting for foreign trusts
- U.S. income taxation of foreign trusts B.
- Reporting on Form 1040NR
- Adjustments to Form 1040NR
- Calculation of DNI for foreign trusts
- Differences in computing DNI between domestic and foreign trusts
- Foreign tax credits
- Trust accumulation calculations and tax impact on UNI
- Information reporting obligations
- Chapter 3 (withholding tax) and Chapter 4 (FATCA) documentations
- Foreign trusts with U.S. grantors (Forms 3520-A, FBARs, etc.)
- Foreign trusts with U.S. beneficiaries (Forms 3520, FBARs, etc.)
- Discussion of current issues and exposure
- Attribution of interests in foreign companies (CFCs and PFICs)
- Impact of changes under Tax Reform
The panel will discuss these and other relevant topics:
- When is a foreign trust subject to U.S. tax and information reporting?
- What must a foreign trust report and on which forms?
- What are the modifications needed on Form 1040NR to report foreign trust FDAP income and ECI?
- What are the differences in DNI calculations between foreign and domestic trusts?
- What obligations information obligations are imposed on foreign trusts?
Jack R. 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
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