topic she is not... in Get your taxes done using TurboTax

Qualified Dividend or not?

smakarar — Mon, 03 Jun 2019 19:45:51 GMT

My wife is a US Citizen but originally from Thailand. She has many investments there and we are trying to evaluate some Dividends as to whether they meet the test. The most important one is some Dividends she received from her stock in Sept 2017. The stock is from Company which harvests and produces rubber. Her father was part owner. He passed away and these stocks were put in her name around Apr 2017. She also had taxes deducted from the DIV payment. She has not sold any of the stock. And it is not publicly traded on the Thai Stock Market. As near as I can tell, this transaction qualifies as a Qualified Dividend according to the criteria specified in the “1099DIV” instructions: Qualified foreign corporation. A foreign corporation is a qualified foreign corporation if it is: 1. Incorporated in a possession of the United States, or 2. Eligible for benefits of a comprehensive income tax treaty with the United States that the Treasury Department determines is satisfactory for this purpose and that includes an exchange of information program. Whereby Thailand is included in the list of countries with an existing treaty. So, is it Qualified or not? And, if so, it should also qualify as a foreign tax credit, correct?

There is the issue that she might be a "controlled foreig...

rogge1722 — Mon, 03 Jun 2019 19:45:52 GMT

There is the issue that she might be a "controlled foreign corporation shareholder." (CFC). See Pub 514 for more info on this issue.

she is not...

smakarar — Mon, 03 Jun 2019 19:45:53 GMT

she is not...

Thailand is on the qualified list, so I'd say the dividen...

rogge1722 — Mon, 03 Jun 2019 19:45:54 GMT

Thailand is on the qualified list, so I'd say the dividends are qualified.

That is what I thought, but - how to be certain?

smakarar — Mon, 03 Jun 2019 19:45:56 GMT

That is what I thought, but - how to be certain?

Thanks for your response.

smakarar — Mon, 03 Jun 2019 19:45:57 GMT

Thanks for your response.

so, it is really a question of whether the div satisfies...

smakarar — Mon, 03 Jun 2019 19:45:58 GMT

so, it is really a question of whether the div satisfies all of the "NOT QUALIFIED" dividends of sched B