Serbinski Accounting Firms

If you also have an on-going rental in the US, and not only for some months you are at work there, you have a permanent home in both countries. Your vital interests are in both countries. While you spend almost the same amount of time in both countries, the term "habitual abode" includes not only a ...

Thank you very much, it will definitely save my time not to look for a specific IRS rule.
It's a smart decision to include form 8833 for any treaty position just to avoid guessing in what case its use is mandatory.

Thank you very much!

Yes, I also noticed that the change-in-use must be declared on the Canadian side to make things work for the IRS, thank you very much for confirming.

If your change-in-use occurs sometime after your departure from Canada, the election XIII (7) will step-up the basis of your ...

Hello,

After reading many posts, I’m still not sure if my understanding is correct.

When you leave Canada owning a Canadian principal residence at the time of your departure, you (a Canadian citizen only) will have a natural step-up of basis to FMV at the time of departure without reporting any ...

If you’re a tax resident of both countries, there’s a tax treaty between them that will determine the country of your tax residency.
US internal rules for tax residency are quite easy to understand, they are objective; once the conditions are met, you become a tax resident.
Canadian internal rules ...

Thank you very much for the answer.

I don't think that I got the right answer from CRA. The agent didn't seem sure. I asked about the penalty if T1243 with 0 capital gains is not filed. According to the agent, no penalty is assessed.

I don't think that there's any obligation to file this form ...

Hello,

I'd like to know if someone has ever been questioned by CRA if your car was listed in 1161 but as a reasonable person you didn't file T1243 with the same car on it? You don't have any capital gains on the car and no capital losses for this type of property are accepted.

A closer look at ...

Thank you very much for the information!

Thank you, good to know!

I thought that probably in several months from the date of the submission, I would be able at least to check the status of my return where I would read "accepted".

If it doesn't work this way, I would probably be able to use a copy of 1040 and an amount credited by IRS as ...

I haven't filed yet as the deadline is still a couple of weeks away. My intention is to proceed with FEIE as it gives me a better refund than foreign tax credits. Even if my tax return is accepted, I won't be able to confirm that this method actually works as not all the tax returns are audited. If ...

Yes, you're right,

I don't think that 1040 return with 0 income will work even if you use a treaty position. And it looks heavy and unnecessary to file 3 empty returns. Moreover, a treaty non-discrimination position for absolute non-residents (without spouse), even if you add a German treaty ...

A very interesting point!

It would really simplify my 2023 tax return.

As I understand it, the treaty doesn't change your residency. It exists to resolve conflicts when you're, by internal laws, a resident of both countries. It can also allow you to file as a resident but it doesn't give you ...

ITIN application takes from several weeks to several months to be processed and that may become a problem if you make a mistake and are left without ITIN by the due date of your return/extension. For example, to get credits for other dependents, one of the conditions is to have an ITIN by the due ...

And ITIN for a spouse:

In W 7 application for ITIN, there're several boxes to check.

The box - e - /Spouse of U.S. citizen/resident alien/ seems the best option if you want to file by making the election to file a U.S. federal tax return jointly with a spouse who is a U.S. citizen or resident ...

TN/TD holders are not eligible for child tax credits as their kids - TD holders - have no SSN. TD/TN holders whose kids are Canadian and Mexican citizens will receive ODC - other dependents credits - for their kids if their kids satisfy two conditions : ITIN+US residency. So, we're able to add our ...