Canadian Form NR4

[David]

Where does a Canadian Form NR4 with code 11 get reported?

Thanks.

[FDNY]

Code 11 is Estate and Trust income.  You may need to file a Canadian tax return but not enough info to determine if it is required.  Was there any withholding?

[David]

No withholding. The canadian tax return has already been prepared. It was reported as non taxable. Is it taxable to US?

[FDNY]

This may be taxable in the US.  I would look at the US Canadian tax treaty to be sure, but it sounds like it's taxable to me.  And you'll have to convert the currency of course.

[David]

OK but I can't find anything that tells me where to report this information. Any ideas?

[FDNY]

I would use line 21 if no other information other than code 11.

[jklcpa]

 

3 hours ago, David said:

Where does a Canadian Form NR4 with code 11 get reported?

Thanks.

Is this from an existing client whose return you've prepared in prior year, and did he have investments in a Canadian mutual fund?  I think those were converted to reporting as on the NR4 and labled as estate/trust income now, and so this is most likely the reporting of investment income from a Passive Foreign Investment Company. I think that reporting can have some complexities, and luckily I've never had to deal with these.  You might want to read up on PFICS and take a look at form 8621.

[taxxcpa]

I reported it as K-1 income for form 1041 under "other portfolio income."

One year the IRS raised a question about it, but agreed, in the end, that I had done it correctly

[jklcpa]

1 hour ago, taxxcpa said:

I reported it as K-1 income for form 1041 under "other portfolio income."

One year the IRS raised a question about it, but agreed, in the end, that I had done it correctly

 

Correct, and we are supposed to report the income where it would ordinarily be reported according to the type of income it is. The problem is that these mutual funds can't/won't be able to tell the taxpayer whether it is dividends, cap gains, or whatever it is.  The OP needs to go back to the client for more information on this.