MIL from USA passed in Dec 2016. In 2016 hubby was
given(beneficiary) 1/2 annuity .. which he could leave in place up to 5
years .. did withdraw some in 2016 and 2017. He also received a lump
sum payment in 2016 for 1/2 value of her house. His sister handled
everything in the USA, she filed for unsupervised probate to sell
house.
I have been reporting the interest earned but did
not file anyT1142 or T1135 for 2016, I thought CRA meant property as in
real estate??. Anyhow, I did file T1135 in 2017??
Should I
have filed a T1142 for 2016, should I be filing T1142 each year money is
taken from this annuity? If so, if I file T1135 for other funds would I
include the annuity on the T1135. Or is it not included because it is
technically not distributed yet???
Because there are multiple issues with filing a Trust return as well as T1 return from previous years for a deceased person, I would suggest you contact the CRA directly, they will give you directives on how to proceed with either the T1135 & T1142 for 2016 and onward. Keep in mind there are foreign tax implications that may need to be applied as well.
Here is how to reach them: 1-800-959-8281
Meanwhile, here are a few links that may assist you in understanding each form from the CRA
CRA Questions and answers about Form T1142: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/foreign-reporting/questions-answers-about-form-t1142.html
CRA Questions and answers about Form T1135: https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/foreign-reporting/questions-answers-about-form-t1135.html
Also, here are TurboTax Tips for each as well.
TurboTaxTips: T1142 - https://turbotax.intuit.ca/tips/rules-for-inheriting-foreign-property-476
TurboTaxTips: T1135 - https://turbotax.intuit.ca/tips/t1135-tax-form-foreign-income-verification-400
Image added below - How to find Foreign Tax Credit (1/27/19)