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Line 6. Ordinary gains (losses). Enter the ordinary gain

Lines 17b and 17c. Distributions to U.S. owners and

or (loss) from the sale or exchange of property other than

beneficiaries. Separately list the total amount of

capital assets and also from involuntary conversions

distributions (including the uncompensated use of trust

(other than casualty or theft).

property) to each U.S. owner and beneficiary. List the full

name, identification number, date of distribution, and FMV

Line 7. Other income. Enter other items of income not

(dollar amount) for each U.S. owner and beneficiary

included on lines 1 through 6. List the types and amounts

receiving a distribution. If more space is needed, attach a

on an attached statement if the trust has more than one

statement.

item.

Prepare a separate Foreign Grantor Trust Owner

Items to be reported on line 7 include any part of a total

Statement (see below) or Foreign Grantor Trust

distribution shown on Form 1099-R, Distributions From

Beneficiary Statement (see below) for each U.S. owner

Pensions, Annuities, Retirement or Profit-Sharing Plans,

or for each U.S. beneficiary who receives a distribution

IRAs, Insurance Contracts, etc., that is treated as ordinary

from the trust.

income. For more information, see the instructions for

Part III—Foreign Trust Balance Sheet

Form 4972, Tax on Lump-Sum Distributions.

List all assets and liabilities of the trust, including those

Expenses

assets and liabilities attributable to the portion(s) of the

Line 9. Interest expense. Enter the amount of interest

trust (if any) not treated as owned by a U.S. person.

(subject to limitations) paid or incurred by the trust on

amounts borrowed by the trust, or on debt acquired by the

The balance sheet should reflect FMV. Include

trust, that is not reported elsewhere in Part II.

certificates of deposit as cash on line 1.

If the proceeds of a loan were used for more than one

Line 18. Accumulated trust income. Include the total

purpose (for example, to purchase a portfolio investment

amount of trust income accumulated and not distributed.

and to acquire an interest in a passive activity), the

Foreign Grantor Trust Owner

fiduciary must make an interest allocation according to the

rules in Temporary Regulations section 1.163-8T.

Statement

Do not include interest paid on indebtedness incurred

A copy of this statement (page 3 of Form 3520-A) must be

or continued to purchase or carry obligations on which the

(a) furnished to each U.S. person who is treated as an

interest is wholly exempt from income tax.

owner of the foreign trust under the grantor trust rules, and

(b) included with this Form 3520-A. The statement must

Line 10a. Foreign taxes. A foreign tax includes only a

be furnished to each U.S. owner no later than the 15th day

tax imposed by the authority of a foreign country.

of the 3rd month following the end of the trust's tax year or

Line 10b. State and local taxes. Enter any deductible

later, if an extension of time to file is granted. See When

state and local income or real property taxes paid or

and Where To File, earlier.

incurred during the tax year that are not reported

Identification numbers and addresses. See the

elsewhere in Part II.

instructions for Part I, earlier, for information on entering

Do not deduct on line 10b or on any other line of Part II:

identification numbers and addresses.

Federal income taxes;

Estate, inheritance, legacy, succession, and gift taxes;

Line 8. Trust documents. If the trust did not appoint a

U.S. agent, list the documents attached to the current year

Federal duties and excise taxes.

Form 3520-A and those attached to a Form 3520-A filed

within the last 3 years. Specify the years the documents

Line 11. Amortization and depreciation (depletion). A

were attached. See the instructions for line 2, Part I, for a

reasonable amount is allowed as a depreciation deduction

list of documents the trust is required to attach to Form

for the exhaustion, wear, and tear of:

3520-A.

Property used in a trade or business, or

Property held for the production of income.

Statement of Foreign Trust Income Attributable

Line 12. Trustee and advisor fees. Enter the

to U.S. Owner

deductible fees paid or incurred to the fiduciary for

The amounts on the statement must include the portion of

administering the trust during the tax year.

income reported by the foreign trust deemed attributable

Line 13. Charitable contributions. Generally, any part

to the U.S. owner.

of the income reported on line 8 that is paid (or treated as

The foreign trust may need to furnish to the U.S. owner

paid) during the tax year for a charitable purpose specified

additional information, including applicable statements, to

in section 170(c) is allowed as a deduction. It is not

ensure that the owner accurately reports income and

necessary that the charitable organization be created or

expenses on the owner's U.S. income tax return.

organized in the United States.

Foreign Grantor Trust Beneficiary

Line 14. Other expenses. Enter other items of expense

not listed on lines 9 through 13. List the type and amount

Statement

on an attached statement if the trust has more than one

A copy of this statement (page 4 of Form 3520-A) must be

item.

(a) furnished to each U.S. beneficiary who receives a

distribution (including the uncompensated use of trust

-6-

Instructions for Form 3520-A (2016)

Instructions For Form 3520-A - Annual Information Return Of Foreign Trust With A U.s. Owner - 2016 Page 6

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