Serbinski Accounting Firms

To Nelson: One of the rules that the US changed is to allow 100% of a FTC rather than 90% in calculating the AMT beginning in 2005. I thought that Canada didn't allow credit for the US AMT because the US did not allow a 100% FTC for AMT. If true then Canada should now allow a credit for the US AMT. ...

To Nelson: Re your questions about AMT credit on Canadian returns: We live in Canada. Our income comes from: Canada -65% (capital gains, OAS, CPP, interest, dividends, small pension) US -30%(Pension, Social Security, Dividends) Other Foreign -5% (interest, dividends) {OAS, CPP & Social Security ...

We file in Canada & the US. After doing both countries' returns with the usual tax credits, we have an AMT due in the US. Is this a tax credit or deduction in Canada?
If so how do we enter it onto our Canadian return?

Peter

I have AMT for this year (2005). Apparently I need to fill out 8801 to establish a claim for future years. I am using Taxcut for US (and Quicktax for Canada). Much of 8801 is filled out by Taxcut. However line 12 is not. It requires an entry by me. (or else I don't understand the form). Peter

IRS Form 8801 is used to claim credit for US Alternative Minimum Tax for future years when there is no AMT. A key input is line 12 which asks for "Minimum Foreign Tax Credit for Exclusion Items". The IRS instructions for this line are very complicated, in fact I can't really understand the...

We are Canadian residents who file individually in Canada and jointly in US. Can the Alternative Minimum Tax from the US return be taken as a Foreign Tax Credit in Canada?
If so, how do we do this?

Pete

Am I correct in assuming that the Self Employment Tax I pay to the US will be a FTC on my Canadian return. If this is the case then the easiest thing is to fill the SE statements and the Schedule C (Easy to do with my US tax program). Then pay the SE tax to the US and then take a FTC on my Canadian ...

Thank-you Nelson

Peter

I am a Canadian resident and a dual taxpayer. Age 67, receiving US Social Security and a very small CPP payment. I earned 7,000$US in 2005 as an advisor to a US company. -Is it correct that I do not pay sel-employment tax to the US on the $7,000? (and only pay income tax to Canada) -If so do I overr...

My wife and I file jointly in US and individually in Canada. Under the tax treaty are Canadian CPP and Canadian OAS exempt from US taxation (as is US social Security)? i.e. by excluding these items from line 16b of our 1040. If exempt, then is it correct that there no Foreign Tax Credit for these it...