Puerto Rico - foreign trust income

[caius valerius]

I am a Puerto Rico resident, non-US citizen, but hold a US Green Card. Many years ago my family (who are not US citzens or residents) set up a discretionary trust in the Bahamas. I am one of the discretionary beneficiaries. The trustees are now going to start paying out income to me, about $60000 a year. QUESTION: Will I have to pay US and/or Puerto Rico tax on the money I get from the trust? What reports or documents will I and the trustees need to file with the Puerto Rican and/or US tax authorities? If any tax will be due, does anyone have any suggestions on how to minimise the amount I will have to pay? Thank you.

 

[abezon]

If you have a green card, you must file a US return every year you meet the minimum income filing requirements. You'll need to file Form 3250 to report the foreign trust distribution. I do not recommend you attempt this on your own.