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Financial Planning / Tax Strategies
|Subject: dividends from foreign corporation as gift?||Date: 12/30/2012 2:07 PM|
|Author: angelman1||Number: 117247 of 121788|
This is a rather specific question which I am trying to get help with. I can't find any tax pros that seem to understand much about non US tax issues to help advise.
I am a resident alien green card holder (UK citizen). I have shares in my father's UK family business in the UK (he is non US resident). He pays out a $20k dividend to me annually which he deposits in my UK bank account. At times I may or may not transfer over some cash from the UK which includes other sources of income such as rent from a UK property.
To date I have been declaring this UK dividend as a dividend and the rental income on my tax forms.
I was recently reading though about people declaring this dividend income as a gift. Since the money is simply going from my father's UK bank account to my UK bank account apart from the UK tax people there is no other record of it as a dividend.
Could I just say I received a gift from my father annually or maybe just not declare it at all? I would of course continue to declare my UK rental income.
What kind of risks might be involved? I guess it depends on just how much the INS follows paper trails abroad and liases with the UK tax people.
The whole tax situation in the US seems so incredibly complex it seems almost impossible for people with moderately complex circumstances to avoid making a mistake somewhere along the line. Most of my ex pat friends don't even declare their foreign income at all or file an FBAR form.. I guess everyone is just "playing the game"
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