Contact the broker over the account to make sure they know the details of the situation. If your identification number is XXXXX to replace your mother's on the account, you may want to request that any interest, dividends, etc. be reported to you as nominee earnings--which means that you will not receive the funds. If the activity is reported to you, there may be pretty high withholding from gross activity like stock sales and remitted to the IRS. This withholding is usually somewhere between 10-20% depending on the tax treaty between the US and that country. If the withholding occurs, your mother should see this with the next disbursement. Hope this helps, Bill
thank you for your answer. is there an obligation from the European broker to report any activity since I have no direct income from the account? Also if the activity is reported can you be more specific about the withholding from stock sale? between 10% and 20% of capital gains?or something else? Thanks for your help.
If your US id number is XXXXX the account, the broker is probably obligated to report the activity. I worked on a couple of returns this year where 20% of the gross stock sales were withheld from a German brokerage. Since no basis was taken into consideration, nearly all of the funds were refunded. Thanks, Bill
can you just explain your last sentence "since no basis was taken into consideration, nearly all of the funds were refunded"? thanks
Cost basis is the amount that was originally paid for the security. This person sold some bonds. He bought the bonds for $20,000 and sold them for about $20,000. $4,000 was withheld and remitted to the IRS. If stock was bought for $100,000 and sold for $80,000, you may still have $16,000 withheld for the IRS because the IRS won't have any cost basis information. Thanks, Bill
Thank you for your help