Revocable trust - Trustee has dual US/Canadian citizenship
I have a client who passed away. He lived in the US and his wife lives in Canada and has dual citizenship. When he passed away, his wife sold a property in the US that he had lived in and operated a Corporation out of that was held in the trust. The 1099-S was reported under the EIN of the trust. I paper filed the extension request but now trying to enter the information in Lacerte, there is nowhere to enter a foreign address. I came upon the following in the Intuit forum:
"I don't think Lacerte Form 1041 allows the input of a foreign address for the fiduciary.
Check out Section 7701 and particularly Regs Section 301.7701-7. If the foreign trustee is the only trustee, the trust would likely fail the tests under §7701 and be classified as a foreign trust, which has tax consequences as well as reporting requirements that would otherwise not be applicable to domestic trusts."
Is this true even if his wife is also a U.S. Citizen? If I can file it, how do I get around the foreign address? If this is now a foreign trust, I need to advise the client to find someone else. I don't do foreign.
