Search found 92 matches

by testone
Sat Apr 11, 2020 7:55 pm
Forum: Canada / United States Tax & Accounting
Topic: Foreign Tax Credit - Canadian vs. US Recognition of Income
Replies: 7
Views: 3719

Re: Foreign Tax Credit - Canadian vs. US Recognition of Income

nelsona wrote: > It is very complicated to change methods, which needs to be approved by IRS. If you use the cash method to account for foreign tax credits, you can change to the accrual method by simply checking the accrual box on Form 1116. Once you choose to use the accrual method, you cannot cha...
by testone
Sat Feb 10, 2018 4:44 pm
Forum: Canada / United States Tax & Accounting
Topic: Question about distribution on Part III of 3520
Replies: 3
Views: 2538

There should be nothing in column e because you did not transfer anything to the trust.
by testone
Thu Jan 25, 2018 11:12 am
Forum: Canada / United States Tax & Accounting
Topic: Capital gain reporting
Replies: 16
Views: 8647

I agree that the individual could not file a 1040NR for the entire year if they spend more than 30 in the U.S. during the year and they lived in the U.S. for prior years. I also agree that if the individual were a dual status alien for the year that capital gains recognized prior to terminating U.S....
by testone
Wed Jan 24, 2018 9:04 pm
Forum: Canada / United States Tax & Accounting
Topic: Capital gain reporting
Replies: 16
Views: 8647

I am assuming that the individual did not have a green card and does not meet the green card test. Treas. Reg. §301.7701(b)-1(c)(4) provides in part: "Thirty-one day minimum. If an individual is not physically present for more than 30 days during the current year, the substantial presence test...
by testone
Wed Jan 24, 2018 8:32 am
Forum: Canada / United States Tax & Accounting
Topic: Capital gain reporting
Replies: 16
Views: 8647

“The 31 days you talk about are for those that have not been considered resident the previous year. It doesn't apply to those leaving US after living there.“

You might want to double check that.
by testone
Tue Mar 21, 2017 2:13 pm
Forum: Canada / United States Tax & Accounting
Topic: PFIC QEF statement question
Replies: 7
Views: 4545

"My question then is if I use the QEF data that only accounts for 272 days. What about the value for the rest of the year? I held the funds the entire year of 2016 * * * Can you please explain about the missing 3 months of 2016?" You compute the QEF inclusion based on your days of ownershi...
by testone
Mon Mar 06, 2017 10:35 am
Forum: Canada / United States Tax & Accounting
Topic: Is this considered foreign source or US source income?
Replies: 5
Views: 2447

I agree. U.S. sourced income, but resourced as foreign under the treaty.
by testone
Mon Mar 06, 2017 10:33 am
Forum: Canada / United States Tax & Accounting
Topic: PFIC as QEF on form 8261 - where to put the numbers
Replies: 8
Views: 4517

You have two options regarding the QEF election: (1) just make a QEF election or (2) make a QEF election and a purging election. See elections A and D in Part II of Form 8621. Under Option 1 (unpedigreed QEF), there is no gain recognized now on the PFIC but future gains on the sale of the QEF will b...
by testone
Sun Mar 05, 2017 8:28 pm
Forum: Canada / United States Tax & Accounting
Topic: PFIC as QEF on form 8261 - where to put the numbers
Replies: 8
Views: 4517

If you will be making the QEF election for 2016, did you acquire the shares in 2016 or before 2016?
by testone
Tue Jan 10, 2017 4:09 pm
Forum: Canada / United States Tax & Accounting
Topic: Necessary to file 8621s?
Replies: 9
Views: 5441

"He said because the total value was <$25,000 no PFICs would need to be filed. Based on my understanding of 8621 I'm not sure this is right. It seems the exclusion criteria is: Under $25K AND had no excess distributions. Since I had capital gains on 4 funds I thought those would be considered t...
by testone
Mon Jan 09, 2017 8:32 pm
Forum: Canada / United States Tax & Accounting
Topic: Necessary to file 8621s?
Replies: 9
Views: 5441

I agree with MGeorge.
by testone
Sun Jan 08, 2017 4:31 pm
Forum: Canada / United States Tax & Accounting
Topic: 1040 for whole year (otherwise dual-status), Article XXV?
Replies: 20
Views: 8170

Sorry, I don't subscribe to the rule that everyone is doing it so it must be okay.
by testone
Sat Jan 07, 2017 9:54 pm
Forum: Canada / United States Tax & Accounting
Topic: 1040 for whole year (otherwise dual-status), Article XXV?
Replies: 20
Views: 8170

"Testone, are you of the opinion that the IRS would not share my treaty position (XXV) to claim the standard deduction and file 1040 for the year?"

Yes. I dont think the treaty allows you to file a normal 1040 for the year.
by testone
Sat Jan 07, 2017 2:33 pm
Forum: Canada / United States Tax & Accounting
Topic: 1040 for whole year (otherwise dual-status), Article XXV?
Replies: 20
Views: 8170

As discussed above, if he were to take this treaty position, he would be required to file Form 8833.
by testone
Sat Jan 07, 2017 1:08 pm
Forum: Canada / United States Tax & Accounting
Topic: 1040 for whole year (otherwise dual-status), Article XXV?
Replies: 20
Views: 8170

Nelson, you seem to be confused. Stewart was asking about filing a normal 1040 when he is a dual status alien and what treaty provision would allow him to do this. Now you say "There is NO TREATY ISSUE in his case." He clearly cannot file a normal 1040 without relying on the treaty.