Hello, i'm a spanish tax advisor trying to shed some clarity to the 401k-IRAs / roth
Spanish tax laws, and specifically, 720 declaration, are full of normative gaps and questions without answer are routine. But AEAT dont miss the oportunity to sanction, taking advantage of this situation, so, we have to ensure our decision.
It's the first time I have to declare an IRA (720/IRPF), so, I'm learning the characteristics and linking them to the obligations to declare, and the habitual methods of AEAT in wich i am familiar, convinced that there will not exist the perfect answer (neither the one who made the law knows, or the one who applies it, trust me). I accept the general idea, we dont have to declarate foreing private pension plans. We can consider them as spanish-equivalent-plans, included now in the double tax agreement between USA-SPAIN. Since the last changes in 2019 (of an agreement dated 2013
), this point is a bit more clarified. The simple IRAs that don't extract other investments, and only represent a liquid quantity deposited in a retirement account, fit perfect on the pure description (i'm learning types of IRA's
https://www.thebalance.com/roth-ira-vs- ... nds-358037 ).
But, what about the IRA's that are linked to a brokerage account brokerage / mutual fund account etc ? Do we have a complex product to declarate -separatelly-?
If you are the investor owner of the products that are holded through the IRA account, you are probably the owner of the individual products (funds, shares, etc) where your money is invested. It leads me to think, that you are not only the owner of an IRA account, you are the owner of a few other invest with their particulary international ISIN. I have read that U.S. laws apply the limit of (¿3 months?), prohibiting tax deductibility to the losses when you rebuy the same product you sold with loss, regardless if they are into the IRA account or outside it. So, do i have to declare the other products instead of the IRA itself?
I havent read anyone considering the option to declare the products linked to the IRA in the 720 in those cases, taking them as linked but, in fact, independent. But probably i'm forgetting something you can tell me.
Other declarations:
- Model 714 (impuesto de patrimonio): It's only required to the ones who has +700.000 € value in goods and rights, excluding 300.000 € of your main residence. It includes goods and rights located in all over the world
- Model D# (#=number): Group of statistical models, like, for example, the model D6 related to shares/funds) , we have to present in January, to declare spanish investments in foreign countrys. There are different models depending on the goods to declare the investments abroad in this declaration (there exist sanctions related to this model, but they haven't applied them till today)
I apologize if some words, explanations, or my grammar is not totally correct... my english level has dropped since i studied it in the school! I hope you understand me and we can reach a satisfactorially solution. Sometimes we have to take proofs of the way we choose, because a perfect answer doesnt exist in Spanish taxes problems. Thanks