Search found 69 matches

by Norbert Schlenker
Wed May 28, 2008 11:34 am
Forum: Canada / United States Tax & Accounting
Topic: Temporary snowbird? Congress has it in for you.
Replies: 1
Views: 1833

Can't get a link into a post to save my life.

http://online.wsj.com/article/SB1211932 ... _nonsub_pj
by Norbert Schlenker
Wed May 28, 2008 11:33 am
Forum: Canada / United States Tax & Accounting
Topic: Temporary snowbird? Congress has it in for you.
Replies: 1
Views: 1833

Temporary snowbird? Congress has it in for you.

After attempting to insert similar language into bill after bill, <a>it appears that Congress has finally managed the feat</a>. The bill will apply taxes to renouncing citizens and to expatriating aliens who meet certain income or asset tests. These taxes include - deemed disposition of all property...
by Norbert Schlenker
Fri Apr 18, 2008 11:45 am
Forum: Canada / United States Tax & Accounting
Topic: CDN citizen lives and owns a house in the us moving back
Replies: 15
Views: 5844

A caution here.

If you depreciate rental property and then sell it, the total amount depreciated is recaptured as ordinary income in the year of sale. It is not capital gains and does not qualify for capital gains rates.

See IRS Pub 544 for a long discussion of the rules.
by Norbert Schlenker
Tue Jan 08, 2008 12:32 pm
Forum: Canada / United States Tax & Accounting
Topic: Stock options - tax consequences in Canada
Replies: 1
Views: 2258

1. The 50% exclusion from income applies even to options from public corporations now but requires specific paperwork. Getting that paperwork in prescribed form out of a US company isn't going to be easy. 2. It's hard to know if the new protocol changes anything. I know of a case where an exercise o...
by Norbert Schlenker
Tue Jan 08, 2008 12:20 pm
Forum: Canada / United States Tax & Accounting
Topic: What brokerages allow you trade in your IRA after leaving US
Replies: 3
Views: 2222

If you roll money from a 401(k) into a traditional IRA, then you lose the rollover feature that allows rolling back into another 401(k). [I have heard but cannot verify that this "taint" has been removed by newer legislation.] I can't tell you about Fido and Canadian residents. I know that Vanguard ...
by Norbert Schlenker
Tue Dec 11, 2007 5:19 pm
Forum: Canada / United States Tax & Accounting
Topic: The poison in a new proposed tax bill
Replies: 5
Views: 3049

So it turns out that the Senate took everything out of the bill that might pay for the AMT fix, including all these expat taxes, and passed that version instead. Some sort of compromise will be necessary and it looks like it may not happen until next year sometime, if ever. So we wait ...
by Norbert Schlenker
Wed Dec 05, 2007 5:38 pm
Forum: Canada / United States Tax & Accounting
Topic: The poison in a new proposed tax bill
Replies: 5
Views: 3049

HR3996, passed in the House, being debated in the Senate as I write. Deemed disposition of all assets at expatriation, 30% confiscated from retirement accounts at expatriation (not clear that a 401(k) would be hit though), gifts back into the US (e.g. to children who don't expatriate) taxable at top...
by Norbert Schlenker
Wed Nov 07, 2007 5:27 pm
Forum: Canada / United States Tax & Accounting
Topic: The poison in a new proposed tax bill
Replies: 5
Views: 3049

The poison in a new proposed tax bill

http://thomas.loc.gov/cgi-bin/query/F?c ... GHh:e41832:

Pay careful attention to the proposed revisions to expat taxes, both for renouncing citizens and emigrating long term residents.
by Norbert Schlenker
Mon Sep 24, 2007 4:43 pm
Forum: Canada / United States Tax & Accounting
Topic: New protocol to US-Canada tax treaty agreed
Replies: 14
Views: 6996

Thanks for the pointer to the specific language, steveh. The pensions article (XVIII) has been almost entirely rewritten, so I'm not sure I have this right, but it looks to me like at best a partial win for returning Canadians with a Roth IRA. What the new paragraph 3(b) gives - explicit recognition...
by Norbert Schlenker
Mon Sep 24, 2007 2:48 pm
Forum: Canada / United States Tax & Accounting
Topic: New protocol to US-Canada tax treaty agreed
Replies: 14
Views: 6996

Re: Roth IRA Treatment under the new treaty protocol

steveh: [i]Under this protocol it appears that the CRA would need to treat Roth IRA's as the US IRS treats them, i.e., income/growth is not taxable in any given year nor on the eventual withdrawal of funds (assuming the Roth has been established for 5 years). Is that correct?[/i] Without the actual ...
by Norbert Schlenker
Sat Sep 22, 2007 2:25 pm
Forum: Canada / United States Tax & Accounting
Topic: New protocol to US-Canada tax treaty agreed
Replies: 14
Views: 6996

Forgot this earlier. Hat tip to Bruce Cohen at the Financial Webring Forum for the pointer.

http://www.financialwebring.org/forum/v ... 124#213124
by Norbert Schlenker
Sat Sep 22, 2007 11:57 am
Forum: Canada / United States Tax & Accounting
Topic: New protocol to US-Canada tax treaty agreed
Replies: 14
Views: 6996

New protocol to US-Canada tax treaty agreed

http://www.fin.gc.ca/news07/data/07-070_1e.html

Help for cross-border employees on pension/401k/RRSP contributions and stock options. Withholding on interest abolished. Confirmation of the stepup rule on cost basis for investments when moving cross-border.
by Norbert Schlenker
Fri Sep 21, 2007 4:59 pm
Forum: Canada / United States Tax & Accounting
Topic: Cdn Stocks in Roth IRA
Replies: 9
Views: 5668

bruce: "Are US taxes withheld from US stock dividends paid to an RRSP?" nelsona: "Yes, and this has been a bigger and bigger problem over the years. There are cumbersome remedies." As far as I know, this is not true. A Canadian broker holding an RRSP which collects a dividend on a US stock position ...
by Norbert Schlenker
Mon Apr 16, 2007 12:24 pm
Forum: Canada / United States Tax & Accounting
Topic: Nonresident alien - reporting cap gains dist/dividends
Replies: 13
Views: 4856

nelsona: "First off, the good news is that you are NOT a US non-resident, since you live in US."

I believe that to be wrong. Employees of the Canadian or a provincial government who are in the US are deemed to be Canadian residents by the treaty. AFAIK there is no way of electing around that.
by Norbert Schlenker
Wed Apr 04, 2007 2:09 am
Forum: Canada / United States Tax & Accounting
Topic: Canadian Resident: US capital gains, 1040NR and Canadian Tax
Replies: 37
Views: 18273

I have bad news re capital gains distributions from US mutual funds to Canadian residents. They're not treated as capital gains. They are foreign investment income, taxable at full marginal rates. The logic is that, since Canada cannot ensure that something called a "capital gain" in another country...