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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13314
Experience:  15years with H & R Block. Divisional leader, Instructor
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I have a Foreign Corporation which hold stocks in the US. I

Customer Question

I have a Foreign Corporation which hold stocks in the US. I made an election to treat this qualified entity as an partnership for US tax purposes. I will become a us green card holder in January 15th, 2016. How do I report these investment held in the Foreign entity to get the advantage of the step up basis. In other words, do I have to do anything?
Submitted: 11 months ago.
Category: Tax
Expert:  Robin D. replied 11 months ago.

Hello

The step up in basis is reversed. In other words, it is not for when you become a resident alien but when a resident alien becomes a non resident. The exception is for people who are “covered expatriates” and give up their green cards or citizenship.

You will be taxed on your worldwide income when you are a green card holder but the holdings and your basis does not change.

Your Foreign Corporation will remain a foreign corp. Your filing requirements for Form 5471 relate to persons who have a certain level of control in certain foreign corporations.

Expert:  Robin D. replied 11 months ago.

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