Serbinski Accounting Firms

As a dual citizen living in Canada, I am curious about the pros/cons of Netfiling my Canadian taxes?

Obviously, I would not be able to attach my 1040 to justify some tax credits on US passive income. Does it make sense to stick with paper filing?

I notice that the CRA Technical News explanation says that these new rules are subject to DRAFT legislation released August 27, 2010. Any word on whether this has been finalized? Do you think it's safe to start filing our elections/statements? Thanks.

Hmmm.... maybe I just assumed the new expatriation rules replaced the old 10 year provisions. So does this mean that a renouncing USC who does not meet the definition of "covered expatriate" (presumably because they do not meet the income or asset tests) is still subject filing 1040's for the next ...

"It is a falacy that many US citizens are giving up citizenship for taxation reasons. First of all, the moment they do that, they are immediately taxable for the next 10 years. Also, that 10-year clock re-starts any time they re-enter US (which in most cases they are not allowed to do). "

Those ...

Sorry, I was confused by your comment that "there ALWAYS is a record of tax withheld". I now see what you were saying. My bad.

Thanks!

What you're saying seems to be somewhat different than what is happening in my case. Perhaps different Canadian brokers handle the situation of dual/American citizens differently.

I hold a US stock in a Canadian taxable brokerage account. They send me 2 forms each year for these dividends: a T5 ...

Thanks for clarifying. I was pretty sure there was some US tax liability on the US dividends.

What does the taxpayer have to do to prove the US tax (from the US dividends) on their Canadian return? Obviously, there is no withholding tax for these dividends itemized on a T5 or 1099. Do you just ...

I think I am confused by your comment that your US tax is effectively reduced to zero. You would still need to send some money to the IRS for the US dividends, right? It's just that the US tax is then recovered on your Canadian return.

So, for example, if your overall tax rate on the 1040 is 13 ...

Hmmm... interesting idea but I'm not sure I agree. Do you have a "binding contract" with the foreign trust that allows you to "act as the trust’s authorized U.S. agent"? (See page 3 of the 3520a instructions for sample "binding contract".)

I think Hapless (up thread) might have this one right ...

Please see the technical news bulletin from the CRA regarding Roth IRAs at [url]http://www.cra-arc.gc.ca/E/pub/tp/itnew ... s-43-e.pdf[/url]

Looks like Canadians with Roths need to make a 1-time election by April 15, 2011.

This seems to be good news as it offers some clarity.

Unfortunately, I have no clue if this is correct or not. I agree that if you don't enter TFSA contributions on Schedule B, then where would this get entered?

With any luck, perhaps nelsona will return soon and offer some wisdom on these issues!?!?

Wow! Dude, where were you 3 months ago when I was filling in these forms? You have done a great job from what I can tell (although I'm no expert). There are a couple things that I think you may have handled better (more correct?) than I did.

I pulled out my forms and compared them to what you did ...

I'm no expert but I would take it to mean that no action is required. They obviously got it and you now have proof.

It looks like Ingtar 17 is a dual citizen, so US taxes are certainly relevant. Not sure if that changes the answer or not regarding the 2555???

I understand how "creating a 1099" could mess up Turbotax in situations where you have <$300 in foreign tax credits. This is because you only need the 1116 when your FTC's are >$300.

So if you have FTC's >$300, why would there by any problem with "creating 1099s"? The Turbotax 1099 entry form is ...