Serbinski Accounting Firms

As a US resident, I just received my NR4 for interest earned on my CDN bank account for the year.

What date do I use to calculate the exchange rate that I need to use when filling tax return in the US? 12/31/09 ?

Is there a proper site to use for the rate?

Thanx...................

As always, you are 100% correct !

Thanx for the info.

To summarize from the CRA website, for others that are interested:

Seller MUST file the proper form within 10 days of the date of disposition.

If you do not, purchaser is entitled to withhold 25% of the proceeds !

With completed form you owe ...

What if there is no capital gain on the sale?

If a US citizen, who lives in the US, buys and then sells property in
Canada, is there any withholding tax in Canada at the time of sale?

The IRS of course ia interested in the capital gains.

Thanx

It sounds like very good advice.

thanx

I live and work in the US.

So my questions are regarding how the IRS will view this on my return.

Again, I have been advised that if my CDN mother transfers (or gifts to me) the CDN property that I cannot take the present day value ($300k) as the base for calculating capital gains when I sell it ...

Yes mother is Canadian.

My understanding is that if it is gifted to me (and therefore no land transfer tax paid) then the base value is not the present value?

Comment ?

I am a dual citizen , non-resident, living in the US.

Mother bought Canadian house in 1960 for $100k. Valuation Day (Dec 31/71) value $200k. Present value $300k.

If I purchase it, my base value (for US capital gains) is $300k

If she transfers (gifts) to me today - my base value will be $100k or ...

As a Canadian/US citizen over the past 2 years I have found myself occasionally searching, or browsing or just wasting time going to this site to read, learn and otherwise enjoy the information that is available.

I see that Mark is the 'moderator' here, but of course most of the back and forth ...

Well put..........

The important point is, of course, that one can really accelerate taking a large amount out for the first few years. In any withdrawal scenario, the last few years will be well over the minimums.

This is still much preferable to the 25% withholding on an entire RRSP withdrawal !

Thanks again nelsona for your excellent advice.

Just recieved some additional info from RBC my RRSP/future RRIF account:

For many contries that Canada has a tax treaty with, including the US, any withdrawals from a RIF will be subject to a 15% non-resident withholding tax only if payments from the ...

Yes - the information made sense.

In the same vein -

From other posts, I note that sometimes you can use the unused portion of a foreign tax credit as a deduction on Sch A. If your foreign tax credit was $600 and $400 was usable, can you deduct the $200 on schedule A ?

Thanx again.

Regarding those residents of the US who have had CDN withholding tax held by Canada.

Can you give us a guideline on how other US income affects the amount of the withholding tax that can be retreived ? That 1116 form is brutal !

Ignoring Section 217 declarations, other links suggest that if one ...

Can you explain further?

Thanx

I assume that your comment about 'unless your income will drop precititously' is addressing the amount of 'foreign tax credit' that can be used on my US return to offset the US tax that would be due.

What is your guestamit on the differecnce that could be used if in addition to the RRIF withdrawl ...