Search found 16893 matches

by nelsona
Thu Apr 22, 2021 8:44 pm
Forum: Canada / United States Tax & Accounting
Topic: CRA Assessment
Replies: 6
Views: 47

Re: CRA Assessment

Shrug. I don't have access to your return and can't help you figure out what CRA decided. Looks like you will need to contact them.
by nelsona
Thu Apr 22, 2021 8:42 pm
Forum: Canada / United States Tax & Accounting
Topic: Canadian Citizen moving back to Canada
Replies: 3
Views: 30

Re: Canadian Citizen moving back to Canada

For 1040NR, you will be filing full year, but only US income, since you were never resident of US. You can use whatever software you wish.
For canada continue to file as before, full year, reporting all income. Again, whatever software you are used to.
by nelsona
Thu Apr 22, 2021 5:57 pm
Forum: Canada / United States Tax & Accounting
Topic: dual citizen, capital gains on selling the home
Replies: 6
Views: 176

Re: dual citizen, capital gains on selling the home

Tr*mp did away with that tax, so don't worry about it. Your software should be taking care of all this.

As ti that mortgage thingy it is only if the Cdn exchange rate was HIGHER when you got the mortgae than when you settled it. Otherwise don;t worry about it.
by nelsona
Thu Apr 22, 2021 5:55 pm
Forum: Canada / United States Tax & Accounting
Topic: Canadian Citizen moving back to Canada
Replies: 3
Views: 30

Re: Canadian Citizen moving back to Canada

Since you have been filing as a non-resident in US (1040NR), you should simply keep doing that, reporting only the US income on the 1040NR. For canada, you have always been resident, report all income for 2020. Canada will give you credit for the US taxes on your 1040NR (and SS, and Medicare, and an...
by nelsona
Thu Apr 22, 2021 5:53 pm
Forum: Canada / United States Tax & Accounting
Topic: CRA Assessment
Replies: 6
Views: 47

Re: CRA Assessment

So, since you never really established US residency, what residence did you have in Canada to return to?
by nelsona
Thu Apr 22, 2021 3:28 pm
Forum: Canada / United States Tax & Accounting
Topic: CRA Assessment
Replies: 6
Views: 47

Re: CRA Assessment

One of the issues seems to be that you claimed you were non-resident of Canada when you were in the US. Simply being in the US doesn;t make you lose Cdn tax status. By saying you were "gone" from Canada, it reduced your personal exemption by the ratio of days you said you were out. Did you...
by nelsona
Thu Apr 22, 2021 1:40 pm
Forum: Canada / United States Tax & Accounting
Topic: how to recognize Cap Gains from US Brokerage, while living in Canada
Replies: 3
Views: 49

Re: how to recognize Cap Gains from US Brokerage, while living in Canada

The US rental is US-sourced. You calcualte the tax in US and Canada, but now you apply the US tax against the CDn tax on your Cdn return. US dividends are US-soured. Do the same as the US rental. As I said, you do your two tax return without any regard for foreign tax credits. You determine the taxe...
by nelsona
Thu Apr 22, 2021 1:34 pm
Forum: Canada / United States Tax & Accounting
Topic: how to recognize Cap Gains from US Brokerage, while living in Canada
Replies: 3
Views: 49

Re: how to recognize Cap Gains from US Brokerage, while living in Canada

Cap gains are, by treaty, Cdn-sourced. So whatever tax you pay in canada on the gains, can be used against the US tax owed on that gains.. You calculate the gains independently on both returns, and then apply the Cdn tax as a credit on with form 1116 (passive) along with any other passive income (li...
by nelsona
Thu Apr 22, 2021 8:52 am
Forum: Canada / United States Tax & Accounting
Topic: Dual Citizen, Capital Gains on US stocks
Replies: 8
Views: 364

Re: Dual Citizen, Capital Gains on US stocks

Just so we are clear, that paragraph you mentioned and highlighted is referring strictly to the GROUPING of re-sourced income onto one 1116, not defining what qualifies to be re-sourced. In other words, it is saying that if you use the treaty to re-source you must prepare a 1116 for each item of inc...
by nelsona
Wed Apr 21, 2021 11:49 am
Forum: Canada / United States Tax & Accounting
Topic: dual citizen, capital gains on selling the home
Replies: 6
Views: 176

Re: dual citizen, capital gains on selling the home

No. gains related to the active conduct of trade or business would refers to day-trading or house flippers. The only relief I can suggest is going back over the time you owned the home and adding the cost of any eligible renos and upgrades you made to the cost basis. You may not have tracked these t...
by nelsona
Tue Apr 20, 2021 10:53 pm
Forum: Canada / United States Tax & Accounting
Topic: dual citizen, capital gains on selling the home
Replies: 6
Views: 176

Re: dual citizen, capital gains on selling the home

Yeah, that is a tough surprise that Americans living in Ontario and BC get hit with.

Sorry, but Gains from your home are considered passive. From the 1116 guide: "Capital gains not related to the active conduct of a trade or business are also generally passive income."
by nelsona
Tue Apr 20, 2021 2:20 pm
Forum: Canada / United States Tax & Accounting
Topic: Very late election for Roth IRAs?
Replies: 8
Views: 1266

Re: Very late election for Roth IRAs?

CRA International division will send you a letter acknowledging receipt and accepting (or rejecting) your election. I would not muddy the waters until you get the result of that first submission. The balances (you would have sent one for each Roth and Roth401(K) are not really crucial, so I wouldn;t...
by nelsona
Tue Apr 20, 2021 2:11 pm
Forum: Canada / United States Tax & Accounting
Topic: TFSA withdrawal after moving to US
Replies: 3
Views: 187

Re: TFSA withdrawal after moving to US

Where would you get the idea that interst below a ceratin amount need not be reported, that has never been the case in canada or US.

What figure had you imagined?

You submit a 1040X and adjust the income to your return on the taxable interest line.
by nelsona
Tue Apr 20, 2021 10:13 am
Forum: Canada / United States Tax & Accounting
Topic: Dual Citizen, Capital Gains on US stocks
Replies: 8
Views: 364

Re: Dual Citizen, Capital Gains on US stocks

sure. where are you going with this?