Announcement

Collapse
No announcement yet.

Foreign Corporate Profit

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Foreign Corporate Profit

    Snurdface is shareholder in British Drilling Partners, LTD. This is a British Limited Partnership. The partnership has all manner of types of income - operations, capital gains, interest, etc.

    As far as I know, British Drilling Partners, LTD is not beholden to file US tax returns, such as a 1065, K-1s, etc.

    Notwithstanding, should Snurdface show his share of income under the various types of income even without a K-1??

    #2
    My Two Cents

    A lot of the reporting issue depends on how he acquired the interest in the Partnership. If it is a publicly traded partnership on any US exchange, then they are required to file with IRS.

    Regardless of what they file, I believe that he needs to report and pay taxes on this income as if they had given him a proper K-1. I suppose he could also get by with just sticking the net income on line 21 but that might overtax him.

    Comment


      #3
      And then there is the requirement to file the 8865, 8868, and/or 8898 depending on his percentage of the ownership, value of the shares.

      And the penalties if the income isn't reported...

      Comment


        #4
        How Long?

        Joan, how long have these requirements been around?

        I knew one of them has been added effective in 2011, not sure of the rest.

        Thanks.

        Comment

        Working...
        X