Search found 234 matches

by CdnAmerican
Sat Oct 24, 2020 5:14 pm
Forum: Canada / United States Tax & Accounting
Topic: Converting IRA into RRSP and increasing RRSP cap
Replies: 2
Views: 204

Converting IRA into RRSP and increasing RRSP cap

I am a USC living in Canada. If I close a US IRA and withdraw the full amount from it, I understand that I can increase my RRSP cap by the amount that I withdrew, as long as I move that withdrawal into an RRSP. How, exactly, does the RRSP cap change? Do I have to make a declaration for that to happe...
by CdnAmerican
Fri Aug 28, 2020 10:59 pm
Forum: Canada / United States Tax & Accounting
Topic: Ending 3520/3520A for RESP
Replies: 3
Views: 314

Ending 3520/3520A for RESP

Hi all - I have an RESP which I have filed the 3520/3520A for each year. With the new IRS ruling that an RESP no longer requires a 3520/3520A, how do I stop filing these? It might be as simple as not filing it this year, but the $10K penalty scares me. Should I: 1) file for one more year, and check ...
by CdnAmerican
Sat Aug 08, 2020 12:23 am
Forum: Canada / United States Tax & Accounting
Topic: IRS asking for a Form 1041 incorrectly
Replies: 7
Views: 2061

Re: IRS asking for a Form 1041 incorrectly

This would be a separate issue, but yes, my understanding is there is now no 3520/3520A for the RESP account. My only question involves how to address this; would I send in a final 3520 for next year and check the box 'final return'? Or, simply send in a letter indicating these are not trusts?
by CdnAmerican
Mon Jul 20, 2020 9:30 pm
Forum: Canada / United States Tax & Accounting
Topic: IRS asking for a Form 1041 incorrectly
Replies: 7
Views: 2061

Re: IRS asking for a Form 1041 incorrectly

Hi all - I just wanted to close the loop on this one, and give the feds some credit. Today I received a letter from the IRS stating "Our records show you no longer have to file Form(s) 1041." Easy as that. Sometimes the IRS is super intimidating, and sometimes I am pleasantly surprised tha...
by CdnAmerican
Thu Jun 25, 2020 5:09 pm
Forum: Canada / United States Tax & Accounting
Topic: Does splitting a TFSA mean an additional 3520?
Replies: 0
Views: 606

Does splitting a TFSA mean an additional 3520?

I'm a Cdn resident and US citizen. I have a TFSA in a bank, and I've filed 3520/3520A on it for years. I have US stocks in it, though, and when I buy/sell these I take a hit from my bank's exchange rate. I can move my US stocks into a separate TFSA account (basically, the same account number but wit...
by CdnAmerican
Wed May 13, 2020 8:35 pm
Forum: Canada / United States Tax & Accounting
Topic: Withdrawing an IRA when in Canada
Replies: 3
Views: 714

Re: Withdrawing an IRA when in Canada

Thanks nelsona! That makes sense. I am surprised that CRA would count it as income, though, since the IRA predates my entry to Canada. I would have assumed that only gains incurred in 2020 would count as income, especially since I've been counting gains in it during stock sales after moving to Canad...
by CdnAmerican
Tue May 12, 2020 11:06 pm
Forum: Canada / United States Tax & Accounting
Topic: Withdrawing an IRA when in Canada
Replies: 3
Views: 714

Withdrawing an IRA when in Canada

I am a US/Cdn dual citizen, living in Canada for the foreseeable future. I have a small IRA in the US. I understand that the US is now allowing people to withdraw from their IRA if they have had a job reduction/loss. - I am unclear on how they define 'job reduction'; I am self=employed and have had ...
by CdnAmerican
Wed May 06, 2020 10:30 am
Forum: Canada / United States Tax & Accounting
Topic: IRS asking for a Form 1041 incorrectly
Replies: 7
Views: 2061

Re: IRS asking for a Form 1041 incorrectly

WhySoComplicated - I'm not sure if I did the right thing or not. I sent a letter to the IRS office (Cincinnati) which requested the letter, and basically described why I didn't think I needed to send in a 1041. That was just about 5-6 weeks ago, and I haven't heard anything back yet. I will assume t...
by CdnAmerican
Sun Apr 26, 2020 11:43 am
Forum: Canada / United States Tax & Accounting
Topic: Filling form 8621 for two TFSA investments
Replies: 4
Views: 1472

Re: Filling form 8621 for two TFSA investments

Hi Misaki - sorry for the late reply! I think your follow-up is beyond the scope of what I know. I am a US citizen living in Canada, and so everything on my 8621 includes time spent outside the US. I don't know how that would apply for prior years on your end - that might be more of a CPA question. ...
by CdnAmerican
Fri Apr 17, 2020 10:10 pm
Forum: Canada / United States Tax & Accounting
Topic: Filling form 8621 for two TFSA investments
Replies: 4
Views: 1472

Re: Filling form 8621 for two TFSA investments

Probably others can help more than I for #1, but I think that for #2, you could compute the change in value in US$ (which may be quite different than in the investment's currency), and then count it as income under mark-to-market. That's what I do with my Cdn mutual funds, noting that it is a pain a...
by CdnAmerican
Sun Apr 05, 2020 2:57 pm
Forum: Canada / United States Tax & Accounting
Topic: US government stimulus check
Replies: 48
Views: 7977

Re: US government stimulus check

Hi Ron - To get a US account online, it's actually pretty easy. RBC does it with their bank which is based in Georgia (the state, not the country). TD has one as well, I believe, and they probably both work finr. The key is to have an account in US dollars which is based in the US; some banks in Can...
by CdnAmerican
Sun Mar 22, 2020 1:47 am
Forum: Canada / United States Tax & Accounting
Topic: 3520 no longer required for RESP?
Replies: 4
Views: 1193

3520 no longer required for RESP?

Hi all - I just saw a note about this, but it hasn't been highlighted in this forum, probably due to other things going on in the world. I can't find the specific IRS document this relates to, but found a copule of articles like this one: https://www.andersentax.ca/blog/the-irs-issues-long-awaited-g...
by CdnAmerican
Thu Jan 23, 2020 1:47 am
Forum: Canada / United States Tax & Accounting
Topic: Incorrect request for Form 1041
Replies: 1
Views: 944

Re: Incorrect request for Form 1041

Just a bump to see if I can get some advice on this one. Seems simple enough but I'd like others' input to make sure I'm on the right track. Thanks in advance
by CdnAmerican
Wed Jan 08, 2020 1:23 am
Forum: Canada / United States Tax & Accounting
Topic: Incorrect request for Form 1041
Replies: 1
Views: 944

Incorrect request for Form 1041

I am a USC living in Canada. I applied for an EIN last year after merging RESP's into a new account (the EIN was for the new account). This was granted by the IRS, but they said I needed to file Form 1041 for the following year. This isn't accurate, as a) it's a foreign trust and b) any potential be...
by CdnAmerican
Mon Oct 28, 2019 12:00 am
Forum: Canada / United States Tax & Accounting
Topic: Penalty for Form 3520 for TFSA
Replies: 13
Views: 5063

Re: Penalty for Form 3520 for TFSA

Hi kdash - I'm sorry to hear of your experience. Another approach you could try is through the Taxpayer Advocate office. Or, you could also try through your US representative's office; they sometimes have a connection that regular folks don't have. Good luck ..