Serbinski Accounting Firms

If the bill becomes law as written, the 5% remittance tax would likely apply to most cross-border transfers by non-citizens, including money sent to oneself. However, legislation like this often goes through amendments, so exemptions (like transfers to your own foreign account or permanent departure...

That’s right, Canada taxes based on residency status as of December 31. Since you were no longer a resident of Ontario at year-end, only a federal return is required. Your departure date should have been entered correctly in the software, which is likely why it didn’t generate a provincial return

The HTKO mechanics are frustratingly opaque, especially when you’re juggling CRA vs IRS treatment. I ran into a similar bind with Canadian mutual fund income and Roth conversions, and the lack of symmetry made the 1116 a nightmare. If this situation ends up triggering IRS penalties down the line due...

Yep, Illinois will happily take your taxes but only from the moment you set foot in the state. Anything you earned while still freezing in Canada? That’s all yours

That 5% remittance tax raises a ton of practical and ethical questions. It’s not clear how “remittance to self” would be treated, if you’re wiring funds to a foreign account in your name, that could still technically count as a cross-border transfer. Enforcement could be a nightmare

nelsona wrote: > That definition provided by Serbinksi was from the previous definition of > residency from CRA, which was made obsolete many years ago. Intention, as I > said earlier, is no longer a criteria. > > Even so, you will have no residential ties in canada when you move. > > You do not hav...

Interesting to note, the 3520 form isn't just about reporting, it also helps the IRS prevent money laundering and ensure that large foreign gifts don't go unreported.

When becoming a resident of the United States it is possible that your deemed disposition and your choice of residency will have massive influence on the decision-making process of the taxation. It would be wise to talk to a tax professional who is familiar equally with the US and Canadian tax syste...

Since you're in Canada working in the U.S., have you checked if any tax treaties apply? They might help with the surcharge issue!

If it doesn't work out, and he's right, then he should think about getting a penalty relief. This law firm explains how to do it: https://federal-lawyer.com/tax-attorney ... abatement/

When you head back to Canada, you can't just transfer your IRA directly to an RRSP or TFSA without some tax consequences. A Traditional IRA usually means you'll face taxes when you withdraw, while a Roth IRA can offer tax-free withdrawals under certain conditions. Most people find it easier to keep ...

Hey vijar, Too complex of a situation, sounds like? Make sure the trust agreement records it properly (this may affect how things are reported), and in Canada and the U.S., you’ll want to keep track of how the settlement affects your taxes. You should be careful because the payments come in installm...

Gift tax applies if you give over $17,000 per person. If you are giving your mom $16,000 and planning on giving your dad $17,000 you should be ok. When it comes into a joint account it might be counted towards your mom's total. As always a good idea to check with a tax pro for specifics!