Search found 18343 matches

by nelsona
Mon Jun 17, 2024 8:40 am
Forum: Canada / United States Tax & Accounting
Topic: LIF impact on WEP for social security
Replies: 4
Views: 179

Re: LIF impact on WEP for social security

No more than RRIFs are. RRIFs are not applicable to WEP
by nelsona
Mon Jun 17, 2024 8:39 am
Forum: Canada / United States Tax & Accounting
Topic: Claiming FTCs for taxes paid on US dividends. Is this correct?
Replies: 14
Views: 197

Re: Claiming FTCs for taxes paid on US dividends. Is this correct?

Seems to me you have all the info you need. Since you are only filing one 1116 (general limitation for you wages), you don;t have to worry about dividends.
Don't forget that the child credit reduces the US tax for any Cdn FTC credit.
by nelsona
Sun Jun 16, 2024 8:30 am
Forum: Canada / United States Tax & Accounting
Topic: Canada-USA capital gains on rental property
Replies: 5
Views: 101

Re: Canada-USA capital gains on rental property

CRA allows sequential moves and still consider your home as principle residence.

When you say you "found" the formula... I already gave it to you.
by nelsona
Sat Jun 15, 2024 5:10 pm
Forum: Canada / United States Tax & Accounting
Topic: Canada-USA capital gains on rental property
Replies: 5
Views: 101

Re: Canada-USA capital gains on rental property

The moment you leave canada, your Cdn home ceases to be considered your principle residence. By CRA rules, when you finally sell, you get the actual time it was your PR, PLUS 12 months. Nothing to do with the treaty. Nothing they can deny. Doesn't matter what you do with the house, rent it leave it ...
by nelsona
Sat Jun 15, 2024 12:49 pm
Forum: Canada / United States Tax & Accounting
Topic: 30% withholding
Replies: 10
Views: 190

Re: 30% withholding

your foreign tax id is your SIN, which was issued by the country you live in. I would have put it, but it doesn't matter. I have explained why you are being withheld at 30%. You will get the same explanation from Vanguard. The change in internal policy was made a few years ago by MANY firms, because...
by nelsona
Sat Jun 15, 2024 9:09 am
Forum: Canada / United States Tax & Accounting
Topic: Canada-USA capital gains on rental property
Replies: 5
Views: 101

Re: Canada-USA capital gains on rental property

The treaty allows a Cdn resident leaving for the US to use the FMV on departure date of their principal residence for any future US taxation on the property. (Article XIII.6). However it does stipulate that the property would be the principal residence "at that time". So in situation 2, yo...
by nelsona
Sat Jun 15, 2024 8:40 am
Forum: Canada / United States Tax & Accounting
Topic: Claiming FTCs for taxes paid on US dividends. Is this correct?
Replies: 14
Views: 197

Re: Claiming FTCs for taxes paid on US dividends. Is this correct?

,.. and while you can file in October, you need to pay any tax April 15 when you file the extension.
by nelsona
Sat Jun 15, 2024 8:39 am
Forum: Canada / United States Tax & Accounting
Topic: Claiming FTCs for taxes paid on US dividends. Is this correct?
Replies: 14
Views: 197

Re: Claiming FTCs for taxes paid on US dividends. Is this correct?

So the software has a discrepancy (most do); I wouldn't stress over it. You will pay much more than you need to just to determine 0.5% difference on your tax bill in US.

As long as you end up paying only 15% dividend tax in US, and nothing more, you will be fine.
by nelsona
Fri Jun 14, 2024 12:58 pm
Forum: Canada / United States Tax & Accounting
Topic: Claiming FTCs for taxes paid on US dividends. Is this correct?
Replies: 14
Views: 197

Re: Claiming FTCs for taxes paid on US dividends. Is this correct?

No, you can't "choose". The US tax on your dividend income is 15%, according to your example. It can only be claimed on your Cdn tax return. When using software, it allows you to claim the amount specific to each bundle of US income. It will limit the tax to 15%. I trust you are using soft...
by nelsona
Fri Jun 14, 2024 9:53 am
Forum: Canada / United States Tax & Accounting
Topic: 30% withholding
Replies: 10
Views: 190

Re: 30% withholding

Sure, But expect the same argument presented her: your withdrawal is too large to be considered periodic, and the treaty spefifies the 15% withholding on periodic payments.
by nelsona
Thu Jun 13, 2024 7:35 pm
Forum: Canada / United States Tax & Accounting
Topic: Claiming FTCs for taxes paid on US dividends. Is this correct?
Replies: 14
Views: 197

Re: Claiming FTCs for taxes paid on US dividends. Is this correct?

Because dividends are taxed differently than ordinary income, you don;t lump it in with your other income. You would use the flat taxrate in your FTC. So as long as you are in the 15% dividend taxrate, you your 15% on your Cdn tax return for FTC.
by nelsona
Thu Jun 13, 2024 7:31 pm
Forum: Canada / United States Tax & Accounting
Topic: 30% withholding
Replies: 10
Views: 190

Re: 30% withholding

Which way saves you? page 1 or NEC? The treaty is VERY clear that only periodic withdrawals are eligible for 15% (read it yourself 18(2)a). In the past the IRS (and most firms) simply held to the 15% rate regardless. However, as you have found out, firms are now withholding 30%, likely due to IRS in...
by nelsona
Thu Jun 13, 2024 1:29 pm
Forum: Canada / United States Tax & Accounting
Topic: 30% withholding
Replies: 10
Views: 190

Re: 30% withholding

No, it is your choice. Connected is almost always better, except if it a huge lump sum (in which case IRS could deny the 15% rate as being non-periodic).
by nelsona
Thu Jun 13, 2024 1:27 pm
Forum: Canada / United States Tax & Accounting
Topic: Claiming FTCs for taxes paid on US dividends. Is this correct?
Replies: 14
Views: 197

Re: Claiming FTCs for taxes paid on US dividends. Is this correct?

Looks right but don't forget that most US dividends -- even many from Cdn firms -- are 'qualified" in US, so you pay a lower rate than on ordinary income.

So it is unlikely that once you combine all your US dividends income, that you will reach the 15% tax rate on those dividends.
by nelsona
Wed Jun 12, 2024 5:15 pm
Forum: Canada / United States Tax & Accounting
Topic: 30% withholding
Replies: 10
Views: 190

Re: 30% withholding

Report the withdrawal on EITHER the front page as connected income, or on the NEC schedule as non connected income, whichever yields the lower tax.

The report the withheld tax, and calculate your refund.