Serbinski Accounting Firms

I was at the bank today discussing our options. Periodic pension payments as we would have with RRIF payments are actually not taxed at all for UK residents, unlike the 15% rate in the US. This seems like a good way to do it, especially as our UK income wont be high and so the tax shouldn't be too ...

Well, we are moving to the UK so that would be retirement investments in 3 countries. The UK doesn't recognize the RRSP as tax deferred which is likely OK as long as we don't go over the capital gains exemption but the longer it grows, the more likely we will.

Plus I have heard nelsona say over ...

Thanks, yes I do have those contribution amounts in a file. Reminds me I should make sure it is up to date for 2015. This website has been a huge help over the years.

And one more question. Is it still a good idea to "step up" the cost base by selling and repurchasing all the investments before we go? Or is that no longer necessary, or not something that benefits Americans?

But I could collapse after I leave right away if I want to? We will leave the country beginning of July but my husband still gets paid through the end of July. I assume our departure date would be after that?

Yes, I would definitely wait until after we were non-resident. I assumed we would tell our RRSP custodian our new address right away so they will know.

I can see how there could be advantages to leaving it here, but I see it being a hassle long-term. Would like to have a simpler financial life if ...

Sounds like this may be the best thing to do. Together we have about 70K or so and moving it out of Canada would be simplest.

-I know that I should wait until we have left Canada. If we leave the country July 28, can we move it July 29? Or should we wait longer to make sure we are considered non ...

Thanks! Makes sense.

I have not yet had an opportunity to use these. If I did, can they be used to offset general or passive income, regardless of how they were generated? Or does it have to correspond with how they were earned? And would pension or other retirement income be considered general or passive income?

Thanks! I think I get it now.

Wow, that seems confusing. So are you saying if I was just Canadian, and I made income in the US, Canada would not tax it? It's only taxed because we are US citizens? That can't be right.

As for your second post, when I entered the income into my Canadian return as foreign income, but with no ...

No I didn't realize that Canada would not allow any tax credit for the US tax. Why not? That seems strange that they would not allow a foreign tax credit. Is it because it is self-employment income? But yes, I did realize I have to tell Canada about it, just assumed I would get a tax credit.

I ran the numbers, re-sourcing on a 1116 to Canada and found the tax would be way higher than if we just paid it to the US.

When you say a compliance letter, how does this work? Do you have a link to how I would get this? And how would I enter this into the turbo tax program?

Actually, I was searching TurboTax, and it said they would not add Social Security tax in if it wasn't already there. So perhaps the tax it said we owed does not even include it?

If we don't re-source the income, how do we get out of paying the SS tax?