Yardley CPA Posted February 8, 2022 Report Share Posted February 8, 2022 Merrill Lynch Tax Reporting Statement includes an amount in the miscellaneous information section of $5,500. In revieing the statement further, it shows the income as "Other Income from Canada" which was reported to the IRS. I assume this is simply listed on the return as just that, Other Income...flowing to a 1099 Misc and reflected on Line 8 of the 1040? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 8, 2022 Report Share Posted February 8, 2022 Is a K-1 expected? What does your client (or his broker) say that income is from? Did the account balance at any time during the year trigger any foreign income/assets filing? 3 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 8, 2022 Report Share Posted February 8, 2022 22 minutes ago, Yardley CPA said: flowing to a 1099 Misc and reflected on Line 8 of the 1040 That's what I've always done. It's been reported to the IRS, just like any other 1099MISC. 2 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted February 8, 2022 Report Share Posted February 8, 2022 I would be concerned that if he/she has income of $5000 from Canada, the underlying asset might be worth more than $10,000 at some point during the year and trigger a FBAR filing. Or even worth $100,000 and trigger the need for an 8938 with the tax return. 5 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 8, 2022 Report Share Posted February 8, 2022 21 minutes ago, Gail in Virginia said: I would be concerned that if he/she has income of $5000 from Canada, the underlying asset might be worth more than $10,000 at some point during the year and trigger a FBAR filing. Or even worth $100,000 and trigger the need for an 8938 with the tax return. But it may not be a foreign account. I have all kinds of brokerage 1099s with foreign income but the income is all held in a domestic account so there are no FBAR issues. And none of my clients with actual foreign financial accounts have ever received a 1099. 3 1 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted February 8, 2022 Report Share Posted February 8, 2022 1 hour ago, Abby Normal said: But it may not be a foreign account. I have all kinds of brokerage 1099s with foreign income but the income is all held in a domestic account so there are no FBAR issues. And none of my clients with actual foreign financial accounts have ever received a 1099. Very true, but that is the reason I would want to know what it is because it is not being reported as simple dividends. 4 Quote Link to comment Share on other sites More sharing options...
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