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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2856
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Question regarding form 3520 and Canadian RESP reporting.

Customer Question

Question regarding form 3520 and Canadian RESP reporting for trusts.I am Canadian who is now US resident.Before moving to the US and becoming US resident - I transferred my family RESP - to my parents - Canadians. By having the grandparents becoming the subscribers of the RESP, I am hopefully able to avoid the anual reporting of this as a trust by a US resident and I am no longer direclty connected to the trust and it was transferred while a CDN resident only.The beneficiaries are my children who are US citizens.My understanding is the only reporting now required is if any distributions are used - my child receiving the distribution would then report the income on 3520.Can you confirm if this is correct?
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Submitted: 8 months ago.
Category: Tax
Expert:  Barbara replied 8 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Actually, TFSA, RDSP, and RESP plans are not trusts under U.S. law, and no filing of Form 3520 is required. However, the income/generated generated by the RESP is required to be reported on a U.S. citizen's tax return.

The following links contain excellent information which you will find helpful:

http://www.skltax.com/u-s-tax-implications-canadian-registered-plans/

http://www.collinsbarrow.com/en/cbn/publications/resp-and-tfsa-accounts-for-u.s.-citizens

Please let me know if you require further information or clarification.

Thank you and best regards,

Barb

Expert:  Barbara replied 8 months ago.

Just following up with you to see if you have any other questions or concerns. If so, please come back to me here, and I will be happy to assist you.

Best regards,

Barb

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