Serbinski Accounting Firms

Ask ONCE. No bumping.

How about YOU finding the answer and letting US know. You've asked a hell of a lot of questions in 2 weeks. Call CRA.

No longer taxable means not filing a full year 1040. When you leave, you will have the option of filing dual status, making your departure date the last day of your "US taxation" on world income. or you can elect to file full year 1040 that year, reporting all income. In the ;latter case, all your c...

Actually that is not what I meant by claiming change of use. I'm saying since it IS a change of use (either when you change to cottage of change to principal residence, and you WOULD have cap gains to pay to CRA, you should trigger a deemed sale in US as well, so that you can use the Cdn tax against...

I think it is pretty clear, you returned and (became a resident) in 2018, so you do not file T1135 for 2018.

1. You are correct that your "winners" should not be sold until you are no longer taxable in US (which would likely be in the year AFTER moving). 2. You do not have to sell these, although mutual funds will have to be sold as they cannot be transferred to Canada, but ordinary investments can be tran...

That is why I'm saying it *might* be a taxable event. There is nothing in the language that specifically says that a rental becoming a non-rental is a change in use. I The prohibition on CCA is only on CCA, not IRS depreciation. I think you will find that you will want to CCA, since depreciation in ...

It is a pension, it is just not periodic, same as taking out 1/2 your RRIF. It is taxed at 25% not 15%, because it isn't periodic.

It is not periodic, so the full tax will be credited in Canada, thus no worry about limitation -- assuming hos effective US taxrate is >15%.
If Canada rejects this, then you simply amend your US return and claim the extra on a re-sourced 1116.

The conversion of a rental into a cottage (there is no concept of second home in Canada) *might* be considered a change in use. The future conversion to a principal residence definitely would. And you would not be allowed to defer taxation until sold if you had used CCA at any point.

Just so we are clear, those eligible to file 1040NR do not report US bank interst on their return. US citizens of course do have to report all interest on 1040. The diffiernce is that Canada will not give a tax credit for the US tax on US-sourced bank interest, so that portion of your reported inter...

My example above was if you tool ALL your LIRA.

In both returns, only $20K will be taxed. For fed, the entire withdrawal is reported as pension, with $20K taxable, and then you apply the Cdn either to a 1116 for credit, or as foreign tax on your schedule A as an itemized deduction. For California, which doesn't recognize these accounts, you would...

Indeed. The deemed disposition is unavoidable. But you are in no way obliged to make the election for IRS. Just as a reminder, since the property was acquired before arriving in Canada, it was also subject to deemed acquisition when they arrived, meaning that it has a cost basis based on arrival in ...

Why would you say that depreciating in Canada wouldn't help with taxes?! Since you must depreciate in US, not doing so in Canada can cause a tax mismatch EVERY YEAR (ie no income thus tax owed in US, and tax owed in Canada with no commensurate tax credit). and then at recapture time, you would have ...