Any income you received should be reported on your tax return based on the type of income. If you just hold the property and did not receive any income - there will not be any tax liability.
Don't mix the interest income credited to your account with the appreciation of your investment. Appreciation will be taxable if the original investment converted to another currency or US dollars.
If you account just changing in value because of currency fluctuation - this doesn't create any gain or loss and therefore it is not taxable event. You need to keep track of your basis - that is original investment in USD and any interest CREDITED to your account.
form 3520A is used if you have a foreign trust.
form 3520 is used if you receive a gift or inheritance abroad
Let me know if you need any help.
Tax Preparer
Taxes, Immigration, Labor Relations
Taxpayers with unreported income relating to offshore transactions who wish to voluntarily disclose the information to the IRS can find information on the process.
IRS Extends Deadline for Disclosing Hidden Offshore Accounts until Oct. 15, 2009 - http://www.irs.gov/newsroom/article/0,,id=213463,00.html
Please do not mix two requirements:
-- to report income regardless if it is received in the US or abroad according to the tax rules - amnesty doesn't cover that requirement.
-- to report foreign accounts under Title 31 (not under any provision of the Internal Revenue Code) - regardless in such account generated taxable income or not. - amnesty covers this requirement.
In general, a trust is a relationship in which one person holds title to property, subject to an obligation to keep or use the property for the benefit of another.
A trust is formed under state law. You may wish to consult the law of the state in which the organization is organized.
See for reference - http://www.irs.gov/charities/article/0,,id=96116,00.html
A foreign trust is any trust other than a domestic trust.A domestic trust is any trust if:
-- A court within the United States is able to exercise primary supervision over the administration of the trust and
-- One or more U.S. persons have the authority to control all substantial decisions of the trust.
To determine if "a shelf corp. called a Limitada" IS a Foreign Trust - documents of that corporation should be analyzed.