Serbinski Accounting Firms

Did you leave canada in 2006, or earlier than that?

If you left in 2006, then the option is merely part of your income (wages) for 2006. You add it to your 2006 cdn return, it is for all purposes 'wages'. Then you do your FTC calculations on this basis.

If however, you left canad before 2006, then ...

Believe it or not, the answer to every single question your asked is "yes".

The fact that your CPP was not taxed in canada (by treaty) does not alter that it is Cdn-sourced. It can and should be lumped with any other Cdn 'general limitation' income.

This will no doubt have the effect of using up ...

Note that the "proof intent" issue applies only to family-based sponsorship.

If one is applying under the skilled-worker category, one does not have to display such intent, which still allows for the "round the flagpole" landing that many immigrants still do while really wishing to work in US ...

One cannot do work while physically in US without US authorization.

Some have argued that work for a foreign employer, if that employer does not benefit from the workers presence in the US, and if the Cdn employer has no dealings with the US, can be permitted.

I usually find that most who do this ...

The issue that face most Cdns in your siutuation are not the legal ones, but rather the estate tax issues, which could see large portions of your estate subject to tax, when a few simple (and some more complex) steps had been taken to avoid this.

See a professional.

there are two possible reasons:

1. Did you submit an NR5 to reduce withholding? Since the rest of your post seems to indicate that you won't be submit a section 217 tax return in canada next year, I'm going to assume this is not the case.

2. They made a mistake. They shouid have withheld 25%. It ...

Will software only writes the will, it does not convey any legal assurances.

Once you sign the generated text, it is good forever. There is no need to update it. And a properly drawn up will in your stae or province of residence will be recognized anywhere in N America.

That said, given all the ...

You can only use 2555 on your Cdn wages, and even then only to a certain ammount. So, in 99% of cases, one has to use both 2555 and one or more 1116.

The ket is that you can't use 2555 and 1116 on the same wage ammount.

I see no reason why AMT would not be fully creditable on your Cdn return, regardless of the changes in US rules. It is a legitimate US tax based on income. Besides, this 90% limit was repealed for the 2005 tax year, not just 2006.

That said, canada does limit its credit on US tax to that which ...

First off, I was under the impression that IRS had changed some of it's rules to avoid AMT for those using 1116 -- unless you are subject to AMT even before running the 1116s. I will see if I can dig up anything on that.

But for your AMT 'credit'. I would know adjust my credit on the Cdn tax return ...

Mortgage and property tax are not related to your Cdn WAGES, so have nothing to do with 2555.

1116 calculations require you to reduce the foreign income first by any dedcutions that are directly related to the incoem, and then by a proportion of whatever is left.

When claiming ftc on different ...

Where do you live and where does your income come from?

Look at it the other way: If you claim moving expenses TO the foreign country, and then exclude the wages earned in that foreign country, you cannot then claim those moving expenses as a deduction. If you could not exclude all your wages, then your moving expenses could be partially deducted.

The ...

Another source, if you move back south, is withdrawls of ~10,000K of RRSP by the non-working spouse. This is tax-free in Canada (by section 217) , but partially taxable (by the RRSP taxable income rules) in US.

Most Cdns who live in US and have Cdn dealing also build up big FTCs.

Living in Canada, you are unlikley to ever use it, unless you get Cdn income which is tax-free in Canada and taxable in US. Off-hand I can't really think of any, other than Gambling winnings. So play the lottery!

If you move ...