Reporting Your Investments

Questions covered:

Earnings from a business that I am an owner but not directly involved in the day to day business.

If the business is incorporated we will determine your earnings based on the corporate return. Report in on  Income > Corporation & Trust > Foreign Corporation tab

Report it on  Income > Self-Employment tab. Indicate your service. 

I own a business and draw dividends.

Owners' draw of is dividends reported the same way as other dividends ( Income > Passive Income > Dividends).

If U.S. business - section U.S. dividends

If Controlled Foreign Corporation  - section Foreign dividends.

Where do I enter K1 information from my Master Limited Partnership (MLP)?

Report it on Income > Other Income, question Do you own a share (interest) in S-Corp or Partnership (whether US or Foreign)? In the US you would have received a K-1 Form for it.

I'm a Sole Trader in the UK. How should I report my income?

The sole trader is reported as self-employment income. Report it on  Income > Self-Employment tab. Indicate your service. 

How do I report performance-based shares that vested this year from my employer?

Report it on Income > Wages > Income Outside of the U.S. tab, question Did you receive stock-based compensation from your employer? Please upload supporting documentation.

Investment income - dividends, interest, capital gains, etc.

Report it on Income > Passive Income > Interest, Dividends, or Income > Investments tabs. Please note: if you filing jointly there are subtabs for both primary and spouse.

I work in private equity and receive carried interest

Report in on Income > Investments, question Did you sell any securities (ie stocks or bonds) during the filing year?

Sale of stock holdings

Report it on Passive income > Investments, question Did you sell any securities (ie stocks or bonds) during the filing year?

I have an investment held in trust for me. Do I have to report it on FBAR?

The need to file FBAR by the beneficiary of the foreign trust depends on the trust rules for income distribution to the U.S. beneficiary.

The decision on whether to report it is arrived using the following logic:

  • If the trust discretionary (i.e. trust distributions are made as the decision of trustee) ==> then the trust is not reported.
  • If the trust is not discretionary (i.e. the beneficiary has discretion about distributions) then it must ONLY be reported if the beneficiary receives more than 50% of trust's current income.

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