"Han" <noone[at]nospam.invalid> wrote:
- quote -

Where? The title of the form itself says foreign trust AND
receipt of certain foreign gifts. The portion of the form
relevant to you is small and I believe towards the back.

FYI, foreign bank accounts get reported on TREASURY Form
90.22.1, not IRS Form 3520.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Boston, MA 02109

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Han wrote:
- quote -

Most Form 3520 has to do with trusts, but Part IV deals with
foreign gifts and bequests made to a US Person. From page 1
of the instructions for Form 3520:

<begin quote
Who Must File?

File Form 3520 if:

* * *

4. You are a U.S. person who, during the current tax
year, received either:

a. More than $100,000 from a nonresident alien
individual or a foreign estate (including foreign persons
related to that nonresident alien individual or foreign
estate) that you treated as gifts or bequests or

b. More than $11,827 from foreign corporations or
foreign partnerships (including foreign persons related to
such foreign corporations or foreign partnerships) that
you treated as gifts.

Complete the identifying information on page 1 of the
form and Part IV. See the instructions for Part IV.

<end quote
And the following is from line 54 of Form 3520:

<begin quote
54. During the current tax year, did you receive more than
$100,000 during the tax year that you treated as gifts or
bequests from a nonresident alien or a foreign estate?
If "Yes," complete columns (a) through (c) with respect to
each such gift or bequest in excess of $5,000. If more
space is needed, attach schedule.

<end quote
--Chris

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Christopher Ballard <cballard[at]tyyni.net> wrote in news:10cdeal4bj956f6

- quote -

Maybe I'm blind, but I read this form as applying to trusts.
I inherited under Dutch law from my father (and mother), on
which was paid Dutch inheritance taxes. It would be my
understanding that (except for reporting that I have a Dutch
bank account of over $10,000, there is no other reporting.
Where did I go wrong in my thinking?

--
Best regards
Han
email address is invalid

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Harlan Lunsford <lunstax[at]bellsouth.net> wrote in

- quote -

In MY Word (PC MS Word in Office XP) it does work. Moreover,
Word has the following menu choice: Insert|Symbol
I choose Latin-1 as the subset, and I see the £ (Alt-0163,
using the Left alt key, and the keypad in Num Lock mode.

There are many pages on the web for alt key codes, such as
one of Daniel Jacobson's pages:
<http://web2.iadfw.net/daniel12/charactermap.htm> .

Another one is:
<http://www.frontpagewizard.com/use_alt_keys.asp
HTH

--
Best regards
Han
email address is invalid

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Alt-0163 will generate a pound symbol (£). Note that the
leading "0" is important. If you just type Alt-163, you end
up with an accented "u".

--Chris Ballard

Harlan Lunsford wrote:
- quote -

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Harlan Lunsford wrote:
- quote -

156 - £

- quote -

Actually on my keyboard it is for the Euro symbol. Otherwise I get
the French letter Ç. When I include the space I get €.

- quote -

Some others that I use include

ALT 21 - §
ALT 20 - ¶
ALT 7 - •

Stu

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Dave Woods wrote:
- quote -

Inheritances are not income, and no tax is payable, but a
U.S. person who receives a gift or inheritance of more than
$100,000 has to report the gift or inheritance on Form 3520,
Part IV. Failure to do so can result in a penalty of up to
25% of the amount of the gift or bequest.

The requirement for filing Form 2530 can be found in IRC
6039F. (The statute says $10,000 is the thresshold for
filing, but this has been increased by IRS notice, see the
instructions to Form 3520).

--Chris Ballard

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Bruce E. Cobern wrote:
- quote -

Now that IS interesting. What I need is to generated the
British pound sign, useful when I'm making all those
reservations for my upcoming trip to the Land of Light
(Scotland).

ALT - ?

Slainte!
Harlan Lunsford, EA n LA

================================================== ==========
Moderator: Here are some useful additional characters
NOTE: 1. The leading zero is not necessary;
2. It only works from the numeric keypad; and
3. It does not work in my version of MS-WORD.

ALSO: I recently took my keboard apart and cleaned it.
Something I may never do again. And I needed to
use the right hand ALT key <g
ALT 128 .. €
ALT 155 .. ›
ALT 156 .. œ
ALT 171 .. «
ALT 172 .. ¬
ALT 241 .. ñ
ALT 242 .. ò
ALT 243 .. ó
ALT 246 .. ö
================================================== ==========

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"Frederick Jorden" <knowtax[at]bigfoot.com> wrote:
- quote -

It requires knowing Word and to a lesser extent, whatever
email program is being used.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Boston, MA 02109

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Frederick Jorden <knowtax[at]bigfoot.com> wrote in

- quote -

I will add it in as if it were a brokerage fee, so it will
up the basis. There is no way I can get the US$ from the €
(ALT-0128 on the keypad) without incurring a fee.

- quote -


€ (ALT-0128 on the keypad)

--
Best regards
Han
email address is invalid

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"Frederick Jorden" <knowtax[at]bigfoot.com> wrote:

- quote -

Alt+0128 will generate the € symbol, with the 0128 being
from the numeric keypad.

--
Bruce E. Cobern, CPA
mailto:bec[at]pipeline.com

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Frederick Jorden wrote:

- quote -

ALT-0128 (on the numeric keypad). €

Phoebe

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Han wrote:

- quote -

Your basis for the euros is the dollar equivalent on the
date of inheritance. you most likely will have an exchange
gain or loss on the conversion to dollars because that
exchange rate has not been static. A 4.5 euro bank fee I
would expense as a bank service charge.

P.S. How do you get the euro symbol with the Microsoft US
keyboard?

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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The inheritance was in a bank account in euros. To send it
over to the US is nowadays a 2-part transaction: the
straight exchange rate such as €8,466.68 for $10,000, as
well as a €4.50 "fee". I was going to add the €4.50 to the
cost of the $10,000, just like a brokerage fee is added to
the basis of a stock transaction.

--
Best regards
Han
email address is invalid

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"Arthur L. Rubin" <ronnirubin[at]sprintmail.com> wrote:
- quote -

You may be right. Perhaps it is capital gain or loss. I am
a bit uncertain on this one.

The question is whether section 988(a) applies to this
transaction. Section 988(a)(1)(A) states that foreign
currency gain or loss on a section 988 transaction is
treated as ordinary income. A section 988 transaction
includes the "disposition of nonfunctional currency". Reg.
1.988-1(a)(1)(i).

However, section 988(e)(1) provides that the provisions of
section 988 do "not apply to any section 988 transaction
entered into by an individual which is a personal
transaction". Section 988(e)(3) defines "personal
transaction". This definition excludes "any transaction to
the extent that expenses properly allocable to such
transaction meet the requirements of . . . section 162 . . .
or . . . section 212 . . . ."

I assume that the OP was not engaged in a trade or business
and therefore section 162 would not apply. I am not certain
about section 212, however. If the OP had been investing
the cash in a Euro bank account and the bank charged him a
fee for converting the cash into US dollars, would he be
able to deduct the fee as a 212 expense? I don't know the
answer to this. If he could deduct the fee as a section 212
expense then the gain or loss would be ordinary.

A quick search did not lead me to other authority in this
area.

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"Arthur L. Rubin" <ronnirubin[at]sprintmail.com> wrote:
- quote -

Section 988

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Boston, MA 02109

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Hamlet the Prince wrote:

- quote -

Cite? I thought they were capital, as you did at first.

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Correction regarding the character of the gain or loss.
Foreign exchange gains or losses are ordinary and not capital.

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Hamlet_the_Prince[at]att.net (Hamlet the Prince) wrote in news:10b7hhi2k44if96

<much snippage> You have a US$20 capital gain.

Thanks for your advice (I think). I tend to agree with you,
but now I may have to file an amended return ...

--
Best regards
Han
email address is invalid

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"James" <cjsh2125[at]hotmail.com> wrote:

- quote -

As others have pointed out, inheritances are not income.

However, interest, dividends, and other gains earned by an
estate and distributed with the inheritance is income, but
I've never been sure how it should be reported. I've never
had to deal with the situation, but I've always assumed that
the beneficiary should report the beneficiary's share of the
net income of the estate when received, just as would be
required if subchapter J applied.

*Dan Evans
*Author of the Tax Protester FAQ
*http://evans-legal.com/dan/tpfaq.html

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