Serbinski Accounting Firms

Any credit or deduction you get from IRS will depend solely on IRS rules.

For one thing, anything from a previous year is ineligible for 2004.

Also, the full-time credit only applies to Canada.

So, the most you can get credit for is the school expenses from this year (2004).

http://www.irs.gov ...

By IRS rules, US does not recognize the deemed dispo, so you are quite allowed to use your normal cost basis when you sell.

The US and Canada have simply agreed that the deemed dispo price <i>can be used</i> by the US taxpayer, if it is advantageous to him.

But for Cdn purposes, you really have no ...

The two acceptable methods of currency exchange are 'day-by-day', that is evaluate each transaction with the rate in effect that day, or an average method, using the average over the period that you are reporting.

Unless all your transactions occured on the last day of the year, the Dec 31 rate is ...

I guess you could, but you'd have to expalin to me what advantsge you would gain by this.

Your wife, if she had US income, would still have to report it on her own 1040 MFS, or 1040NR, which has unfavourable taxrates compared to piggy-backing on your MFJ.

And as I've often said, being overly ...

I won't comment on the vagaries of your tax software, but generally, the more foreign tax you report, the more credit you get, up tp the point that you reach the limit, at which point you are merely building up your carryforward.

But, you have no requirement to report any foreign tax if you don't ...

The treaty protects you by limiting the Cdn taxable portion of your IRA to what was taxable on your US return.

So, when you go to withdraw from your IRA, the first $X,XXX will be non-taxable in US and Canada.

A Cdn Roth (my term) arises from the possibility of any <u>non-US Citizen</u> of being ...

"I understand that I need to report my husband's income on my Canadian tax form".

Only on the front page. You don't need an SIN to do this. Your goal is merely to ensure that you don't get any 'benefit' from CRA thinking he has no income (ie spousal deduction).

As to online filing, it depends on ...

Not quite accurate.

There is a rather complex maneouver that will allow you to re-source a small portion of some types of income (in your case the interest) so that you only pay 10% tax, not report only 10% of the income.

In fact, you may be paying less than 10% tax on it anyways in US, so the re ...

Options are pretty tricky, and from what I've heard, the differing treatment between US and Canada usually removes a big chunk of their attractiveness.

That they are likely 'non-statuatory' options, probaly complicates things further.

I'll point you to:

http://www.irs.gov/taxtopics/tc427.html
and ...

I do not know what a BHP plan is.

And a search of this thread yields nothing called BHP or anything remotely close.

Roths can't be transferred. Either cash them out shortly before/after leaving US, or begin paying Cdn tax on their yearly income.


As to funding your own RRSP, if your husband makes ...

Holding US mutual funds that invest in foreign markets is NOT holding US currency. Why do you think 'foreign' mutual funds have perfomed so well in the past 2 years? Besause they are not held in US dollars (their value is merely tracked in USD for buying and selling purposes). So when you do start ...

Read my post.

I said attach it to 1040-X, that is the amending document.

I would now wait a couple of weeks to do this, since you don't want to amend something that is not in the system yet.


<i>nelsona non grata... and non pro</i>

rsch-,

Makes no difference. It is not more or less of an advantage for US citizens or non-US citiszens.

It is simply a big effort for no sum gain.

<i>nelsona non grata... and non pro</i>

W-7 will have to be sent <b>WITH THE 1040-X</b>, as the IRS does not accept W-7's by themselves anymore.


<i>nelsona non grata... and non pro</i>

The IRS doesn't view a GC as abandonned until you formally do so, and so does expect you to continue to file a 1040 until such time as your card is officially rescinded.

Your child is a dependant of course, and is entitled to an ITIN (actually, all Cdn children are, it's just that most of their ...