Hi all,This year I am going to be receiving roughly $20,000 as a beneficiary of a foreign (Canadian) trust. I have been told by the trustees that all taxes have been paid in Canada and that I should not owe the US government any taxes on this money. However the trustees are not very familiar with US tax laws, so I'm not sure they are correct about this. I know that there is a foreign tax credit, but I don't know if it applies in this situation. I plan to put some of the money into my existing traditional IRA. Here are my questions:1. Do I need to declare this money on my tax return?2. Do I need to complete the foreign tax credit?3. Is it likely that I will owe the US goverment tax on this money?4. If so, how can I legally avoid paying such tax?5. Would I be better off opening a Roth IRA to put this money into instead of putting it in my existing traditional IRA for the tax benefits (since in theory tax has already been paid on this money)?Thanks for the help!
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Rat