Serbinski Accounting Firms

For 2011 1040 tax filing, I had earlier taken bank of Canada rate of 1 C$= 1.011 US$.

Before filing my tax return, I noticed IRS rate of 1 C$= 0.972 US$. Not that it makes a big difference but surprised to note a 4 % difference in exchage rates.

Corrected to IRS rate.
Thanks

Nelsona,
Thanks.

I read SSA information again and I think, I can get 40 % of $ 761 under WEP instead of of 90 % of $ 761 for regular 30 plus year served person. An estimated loss of $ 381 and not $ 500. That is not terribly bad.

I will not pre-empt question on WEP as per your advise.

I lived in Canada and worked in private sector for 8 years and contributed to CPP during this time. My estimate for company pension from this service is about $800 and CPP income of about $200 per month. I understand that due to Windfall Elimination Provision, my social security income will reduce d...

Nelsona,
Thanks and I understand your point.

I asked as an eventuality for 183 days. If it comes to that she will be paying taxes to Canada but does that affect my tax situation on US income for Canada?

Based on your information renting may be a better option in other case.

Nelsona- Thanks. Case 1- My wife likes Canada more than US. Does this mean that she has to keep a count of days that in any calendar year she does not exceed 183 days in Canada. It gets challanging since travel days can be counted as stay in both countries. Case 2- One question. Does your answer imp...

I am posting two cases which are two possibilities. The information on tax will have significant influence on our decisions. Background- I am on TN visa. My departure return was approved earlier and I am a non resident so is my wife who is on TN. Case 1- Our kid is joining Canadian university. We ar...

In spite of capturing all possible expenses on rental property, I am still left with some net income. To make it zero and to get full NR tax refund, am I allowed to claim 4 % capital cost allowance as expense? Since the rental property was acquired few years back, 4 % is the rate and is helpful to b...

My tenant has filed for bankrupcy and informed he cannot pay rent . I may lose few months rent. If I agree to break lease and minimize my losses and take up with IRS & CRA with a copy of bankrupcy certificate and tenant confirmation letter of non payment of rent , will I still have to pay tax on...

Nelsona,
Sorry for the confusion. I am Canadian citizen and working in US on TN currently . If I retire without taking green card as an option, then I will be staying in US for about 4 months but not exceeding 180 days.

Hope this clarifies.

There is a strong possibility that after retirement, I may live in US, Canada and a third treaty country each for 4 months. Since 123 days is threshold for US substantial presence test and if I decide to continue to on TN status, what would be my tax home? I own houses in each of the three countries...

Hello Nelsona, Thanks. I had bought house in Canada when US dollar was very strong which resulted in low purchase price in USD on 1040. The currency exchange rate alone will account over 50% of appreciation assuming no real appreciation when I sell rental property . Add to that depreciation claimed,...

Nelsona- Thanks.

Is there a separate line item where this needs to be reported for prior year excess contribution to RRSP?

I have a simple question about RRSP amount. My 2008 CRA assessment shows my RRSP deduction limit as amount "A". That is clear. No question about it However the notice also says that you have amount "B" of unused RRSP contribution available for 2009. What does this mean? Does it m...

Schedule E details on 1040 for Canada rental properties requires depreciation. To calculate house or asset price in USD, do we take Bank of Canada average exchange rate for 2009 or exchange rate on the day of purchase of house property?

Logically day of purchase exchange rate appears to be logical.

The donation was made to US charity while resident of Canada.