TaxConnections

Login | TAXPAYERS | TAX PROFESSIONALS-START HERE

Being Canadian, what are the implications of dissolving a U.S. State of Florida Trust?

Foreigner dissolving a U.S. Trust
TaxConnections Members... Answer This Question Want To be One of Our Tax Experts? Register Here

Tax Professional Answers

User Photo
Michael Atlas, CPA, CA

Since you are a Canadian resident, you have to concern
yourself with both Canadian and U.S. tax issues.



My comments will be confined to Canadian tax implications
only.



1)      No Canadian tax will be payable on the receipt
of capital from the trust; however, if income earned by the estate is received
by you in the same year that it is earned, it may be taxable in Canada.



 



2)      If there are assets other than cash received by
you, their cost base for Canadian tax purposes will be determined based on
rules contained in subsection 107(2) of the Income
Tax Act
. In general terms, this will mean that your cost base will be the “adjusted
cost base” of the assets in the hands of the trust determined based on Canadian tax rules.


  3) You must report your receipt of any assets from the trust to the CRA using form T1142




















 



tr

Leave a Comment 218 weeks ago

Meet Leading Tax Advisors

User Photo Peter J. Scalise

Federal Tax Credits & Incentives Practice Leader

New York, NY

User Photo John L Stancil

Tax Advisor/CEO

Lakeland, FL

User Photo John R Dundon, II EA

Tax Director

Denver, CO

User Photo Kevin Johnson MS, JD, LL.M, CPA

Partner

Philadelphia, PA

User Photo Brian Weaver, CPA, MBA

Managing Tax Consultant

Des Plaines, IL

User Photo William Rogers, CFP, MBA, EA

Rancho Santa Fe, CA

Title

User Photo Clinton J Donnelly, LLM

International Tax Advisor

Panama City, Panama

User Photo Jim Marshall, EA

President/ Tax And Financial Advisor

Scottsdale, AZ

User Photo Brett A Thompson, JD, CPA

Managing Tax Lawyer

Katy, TX

User Photo Charles Woodson, EA

Tax Advisor/Fiduciary Coach

San Diego, CA

User Photo John Richardson

Tax Lawyer

Toronto, Canada

User Photo Clifford Benjamin

Senior Tax Principal

Daytona Beach, FL

User Photo Kazim Qasim, EA, CTC

Managing Tax Advisor/CEO

Orlando, FL

 

View/Select our Current List of Tax Topics

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Previous PageNext Page

INCREASE KNOWLEDGE WITH EVERY ISSUE OF TAXCONNECTIONS

 

Learn from tax advisors, straight to your inbox

Update My Email Address
Contact Us Today