Serbinski Accounting Firms

Going back to my original post, I forgot about treaty article XXV. Would my spouse be able to use a pro-forma 1040 to calculate the effective tax rate and then file the 1040NR using the lower rate? I think this would allow a transfer of 15k from an IRA to RSP with US tax owing of $1500 (10% penalty)...

She received a letter from CRA asking for US return, proof of payment, etc. After providing what they asked, she received a letter stating that no additional tax was owed. This is what I meant when saying she was audited.

Thanks for your reply. Yes, we are doing the transfers as lump sums, being careful to move a different amount each year so that it does not look like periodic payments. The IRA converted to CAD is added to her Canadian income but is subtracted under CRA rule 60(j) in which special RSP contribution r...

We're planning to move some amount of IRA funds to Canadian RSP while exchange rates are still good. In the past couple of years, the 4k exemption used in filing the 1040NR allowed a tax neutral move. With the exemption gone, it will cost something, but if I file MFJ, this allows the first 15k to be...

US Citizen living in Canada filing US taxes as Married Filing Separately because Canadian Citizen Canadian Resident spouse doesn't want/need to file in the US. The changes being proposed by the Trump administration would eliminate the personal exemptions and increase the standard deduction to $30K f...

I am Canadian citizen, Canadian resident with US Roth IRA. I just requested a withdrawal of non-taxable contributions from my Roth IRA. The 15% treaty rate was withheld from the distribuion. Since this is going to be my only transaction for 2015, can I file the 2015 1040NR now in order to get my ref...

Yes, I am a US citizen and I have simplified a bit. I had a small amount of Canadian interest and a small capital loss. These are my new numbers. CND interest 787 CND Capital loss (182) US IRA distribution 32,588 US interest 2957 Total inc. 36,150 My total US tax before any FTCs in 3480. If I apport...

I need help in understanding how the foreign tax credits on my US return effects my Canadian return. This is my situation: IRA withdrawal - 32,588 US sourced interest - 2,957 Total US income 35,545 Tax before FTC 3,480 FTC for interest (357) Tax paid 3,123 On Canadian return, in calculating my forei...

Just an update from me. I refiled my US and Canadian taxes for the years in question, changing the reporting method to accrual on my US return. Now I pay the taxes on the interest in Canada each year and claim it as a foreign tax credit on my US return.

I was trying hard not to ask a follow-up, but I have another thought. If I make my US relatives the beneficiaries of the non-spousal portion of the IRA, then my estate would not pay the tax in the US, the beneficiaries would pay when they cash it in. Each of them are in a lower tax brackets than me....

I have a US IRA account worth about 600K. I plan to leave 400K to my Canadian spouse and 200K to my US based relatives. The beneficiary for the 200K portion is my estate. Am I correct in assuming this would automatically generate 200K in income in my year of death? Even if I were to designate my US ...

I called the IRS about this and was transferred to someone in the Tax Law department. After alot of discussion, he said that since we have been in compliance with 1040, etc reporting and our net worth is under the threshhold, my spouse could just file as if expatriating in 2011. This is what we are ...

Is it a requirement that you limit the amount of tax paid in Canada to just the amount owed? Why not carry over the unused credit in case you need it in a future year? Is this not allowed? Thanks in advance.

If my wife is a former Long Term Green Card holder and I am a US Citizen, is the form 8854 a requirement if we continue to file MFJ in the US? If she didn't file the 8854 upon turning in her green card in 2008, can she just fill in 8854 with our 2011 taxes? We are compliant with the past years repor...

I am a US citizen, Canadian resident. Is there ever a circumstance where a withdrawal from a US IRA account can receive the pension credit on a Canadian return? This is my reason for asking - I had a 401k in the US that was rolled over to an IRA. My entire work history is in the US and I don't have ...