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 Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11341
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

My client is a canadian citizen but is a resident alien and

Customer Question

My client is a canadian citizen but is a resident alien and has lived and worked in the U.S
for the past 20 years. He files form 1040 as a resident alien. He received a form
NR4 from Bank of Montreal showing code 11, Estate/Trust income which will be reported
on his 1040. This is an Investment account holding Mutual Funds. Where is this account
to be reported on Form 8938, Statement of Specified Foreign Financial Assets? Is the
account reported in Part I, Part II or Part VI?
Thanks.
Submitted: 9 months ago.
Category: Tax
Expert:  Lane replied 9 months ago.

You said this was estate or trust income ... What makes you think thaty this should be reported on 8398?

...

Is this a grantor trust (where your client has "an interest" can control, etc.)

...

Or is this a trust where he only has income and has a beneficial interest (cannot control) which would be reported on form 3520

...

Let me know and we can go from there

...

Lane

...

...

I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, on three continents, since 1986.

Expert:  Lane replied 9 months ago.

Hi Donald,

...

As I don't see you coming back into the chat, I'll try to provide some general information:

...

Again if this is a trust from which the client simply receives income or other distributions, and the client is not the grantor of the trust, the form to use would be 3520.

...

But if the client truly controls and has an ownership interest, then you'll use the "suctodial account" category (deposit accounts would be for interest bearing acconuts such as time deposits).

...

This is only reported on part I

Expert:  Lane replied 9 months ago.

Please let me know if you have any questions at all.

...

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

Otherwise I’m working for no crediting at all here

...

Thank you!

Lane

I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.