Serbinski Accounting Firms

Keats strategy of declaring RRSP income as "passive" for foreign tax purposes, relies on having NEVER used any treaty exemptions, thus paying yearly tax on int/div/capgains.

This is fine.

Trouble is, most now use the treaty, since it has become very easy with Form 8891. But once you use this, any ...

he whole point of filing by XXV(4) is that you and your spouse have lots of other income than your US wage.

If you don't, then you don't need XXV(4), and just file a 1040 like anyone else.

Your Cdn interest is not reportable on 1040NR, but should be on your 1040 proforma, along with your wfe's income.

This only works if you and your spouse have other income. If you don't thaen just file a 1040 and be done with it.


Are you even married? Were you jerking me around, or what?

So...you're saying I have to QUALIFY to move to Canada?

OF COURSE. Do you think that all Cdn citizens marry perfect little angels?!

What if you were a convicted meth dealer, or a kiddie porn peddler. Do you think that Canad would just let you in because you managed to get your hooks on a Cdn ...

Line 256 is for -- among many other things -- income that is not taxable in Canad by treaty.

None of the income you have is not taxable in Canada by treaty.

I'm sure you will find that many of the lines in the tax form don't apply to you, but they leave them there for others ;0).

So, in Canada ...

You only change one line on your 1040NR: line 58. You do this by LINING out the normal ammount, and indicatingb the revised ammount below it.

You don't change any of the other entries.

As I explained in the other thread about this process (just because I told you not to jump on that thread doesn't ...

Since you are sef-employed and living in Canada, the income is taxable in Canada


As a resident, you are not entitled to exclude anything on 256: you owe taxes in Canada on world income from the date you moved. See the Newcomers guide from CRA; this is your primary guide for 2006.


By a quirk in ...

As a 104NR filer, you do not report foreign earned income, so why would you want to file 2555: your foreign income is already excluded?

Just to repeat

To clarify most -- if not all -- of what allen has said:

Your husband should file a normal 1040, declaring ALL world income for 2006. He should also declare all your world income. The Cdn WAGES either of you made should be excluded by using form 2555, but it must be reported.
This is a joint return ...

Your investment income idea (passive) not help in using up RRSP NR tax (gen limit) since it will not be coming from the same category of income (Keats is wrong on this one). And, only interest and dividends are considered foreign source in any event. You could consider rental income.


The IRS is ...

There is nothing in your 1040 for 2005 and 2005 to ammend. merely send in 8891s for those years attached to a 1040-X with no other changes. Indicate on those and any future 8891s that you fist made the election in 2004.

PWC is obviously trying to 'pad' their account by sending in lots of paperwork ...

1116 should only be attempted with tax software.

I meant to say that it looks like they withheld at the rates for RESIDENTS.

You can use it as foreign income. However the tax that you can get credit for will not be the ammount that was withheld. As I said, it becomes part of your Cdn wages for the year, thus the tax related to it will be proportion to all your other income and tax.