How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Barbara Your Own Question

Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 1051
Experience:  Tax Preparer for 16 years; 25+ years experience as a real estate/corporate paralegal.
71603090
Type Your Tax Question Here...
Barbara is online now
A new question is answered every 9 seconds

I absolutely need international (foreign) tax expert please: I

Resolved Question:

I absolutely need international (foreign) tax expert please:

I am a US citizen residing in Turkey (do not pay any state taxes)
a) I have a Corp created in Turkey in Jan 2012 owning 96%, i am director, in the decision making, on the board, etc, but no salary

b)and bought 100 shares of another corp in Costa Rica (paid some money to the previous foreign owner and injected some money into the corp) owning 100% shares but do not have control on day to day decisions, no salary, not on the board, no access to company bank accounts, etc

I have an individual income tax return extension till Oct 15,2013

I have prepared form 5471 and 926 for both companies.

Questions:

a) Very important? What other forms, if any, need to be filled out?

b) Do I not have to sign these forms? I do not see where to sign.

c) I assumed that there is no need to fill in 1120-F since there is no activity whatsoever of these corporations with and within USA (no trade, no office, no agents etc). Is that correct?
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.

Hello again, Ned.

 

Did you exchange or transfer property to either foreign corporation? If not, Form 926 is not needed.

 

You do not sign the Form 5471. It is attached to, and part of, your personal tax return.

 

If you do not have a corporation formed in the US, there is no need to file form 1120S.

 

Let me know if I can assist you further.

 

Barb

Customer: replied 1 year ago.

Yes i transfered cash only (926).


There was no mention of 1120S, I was asking about 1120-F


(both corporations were formed in their respective countries)

Expert:  Barbara replied 1 year ago.

Hi, Ned.

 

My apologies. I referenced the 1120-S because you mentioned it in your first question, and I just assumed it was a typo. My mistake.

 

Yes. Form 1120-F would be required to be filled out for both foreign corporations. I have reviewed the form itself, and it seems fairly simple to fill out. If you have any questions about any of the information you have to provide, please let me know.

 

Since you hold more than 10% of the total voting power or total value of the foreign corporation, you would need to use Form 926 to report the transfer of cash.

 

Please let me know if I can assist you further. Thank you.

 

Barb

 

 

Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 1051
Experience: Tax Preparer for 16 years; 25+ years experience as a real estate/corporate paralegal.
Barbara and other Tax Specialists are ready to help you
Expert:  Barbara replied 1 year ago.

Hello again, Ned.

 

I guess I was on the right track at the beginning. A colleague of mine pointed out that Form 1120-F is only required if the corporation carries on business in the United States. If 100% of its activities are outside of the US, no 1120-F is required, only the Form 5471.

 

Thank you.

Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 1051
Experience: Tax Preparer for 16 years; 25+ years experience as a real estate/corporate paralegal.
Barbara and other Tax Specialists are ready to help you
Customer: replied 1 year ago.

Thanks Barb,


 


According to the form 5471 the Turkish company shows a loss and the Costa Rican company shows profit. What do I do now? Do I add/subtract those dividends in my individual income tax form?

Expert:  Barbara replied 1 year ago.

Hi, Ned.

 

I would include the net amount (profit amount minus loss amount) on Line 21 of your 1040 and put Form 5471 on that line. You will be including both 5471's to your tax return as supporting documentation for that amount.

 

Please let me know if you have any other questions.

 

Thanks.

 

Barb

Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 1051
Experience: Tax Preparer for 16 years; 25+ years experience as a real estate/corporate paralegal.
Barbara and other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.