Serbinski Accounting Firms

We should start a tip jar for Nelsona.....

Phil

It really depends on what the "foreign income" is.

Do you have a T3/T5 summary that shows what the source of the income is?

Is it US source or another country?

No problem...

Should be December 12th, please see page 5 of the instructions:

http://www.irs.gov/pub/irs-pdf/i8938.pdf

Yes, I incorrectly assumed a lump sum payment.

As Nelsona notes, periodic pension payments will be 15%.

Yes, s.217 return is a good option if you qualify. And the cost to prepare the return doesn't exceed the amount recovered.

It never hurts to attach an explanation to forms that need to be filed, however in the case of FBARs it's unlikely that anyone will read or care about the note.

Probably won't hurt.

Not sure exactly what you're asking but...

If the account is converted to a RRIF then yes, they should be withholding 15% for periodic payments (pursuant to the treaty). Be sure to confirm with them that this is what they plan on withholding e.g. versus 25%.

Additional lump sum withdrawals however ...

If I understand this correctly....

1) As green card holders they are required to file US tax returns

2) Yes, they can claim a foreign tax credit on their US tax return via form 1116

3) It's hard to find US CPAs that deal with cross border tax matters

If you're eligible for SS you should be able to apply for and receive social security payment while being a resident of Canada.

SS is only taxable in your country of residence, therefore it shouldn't be taxable in the US.

The answer to your question depends on whether your a Canadian resident (maybe also US taxpayer) or US resident:

Canadian resident and US taxpayer: pension income is taxed on both tax returns and you'll claim a foreign tax credit on your US return for the taxes paid on the pension for Canadian ...

Hi RedAri

I'm assuming you're a US citizen. If in fact that is the case, then yes, you should have been filing US tax returns while you lived in Canada.

The IRS has rolled out a great new program for those that qualify:

http://hutcheson.ca/irs/new-september-2012-streamlined-filing-procedures-for ...

How much do you need to invest?

Phil

Also, don't forget about Dan Walkow in Whiterock BC.

Dan Walkow
1-604-630-8701
Seabank Capital

I've worked with the guys at Pacifica and can definitely vouch for their level of cross border investment knowledge and client service.

Hope that helps

Phil