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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 581
Experience:  10 years experience
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Dear U.S.Tax Specialist, Last year my minor daughter

Customer Question

Dear U.S.Tax Specialist, Last year my minor daughter received a $75,000 gift from her foreign grandparents. For convenience, the funds were held in foreign currency at a foreign bank account under my name. Fbars will be filed so no problem there. The income
earned on the account last year was $3,300. So should I file a U.S. Tax return for my daughter to disclose this income and pay the tax at the kiddie rate, or should I disclose all or part of the interest income in my U.S. tax return and pay tax at my tax rate
which is about 25%?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
We need to be clear that is your daughter's funds and are simply held in trust by you.These are NOT your money - and not your income.If these assumptions are correct - you are receiving that income as a nominee - and it should be reported on your daughter's tax return.I would suggest to report based on the factual ownership - on your daughter's tax return.