Serbinski Accounting Firms

I didn't have employment income last year, only capital gains, on which I paid the taxes "on time" (or what i THOUGHT was on time; prior to tax day this year). But it seems the CRA is saying I owe them ~$225 in interest/penalties because [u]I didn't pay quarterly installments[/u] last year. But that ...

In 2013, I bought 600 shares of Lorillard (LO), cost basis ~$29,000.

Last week, it merged with Reynolds, and i received -- for every share of LO I owned -- $50.50 in cash. and 0.2909 shares of RAI. So I got:
- 74 shares of RAI (stock price = ~$72, so value of stock I got was ~$12,500), and
- $30 ...

Consider following circumstances:
- I'm a Canadian citizen/resident and had a 2014 income of $160,000
- I have unused RSP contribution room of $70,000
- I'm moving to the US later this year, and will become a US tax resident.

What if I contribute 70K of my income to my RSP today and take the full ...

I keep a large portion of my life savings in each of USD and CAD (on account of having worked in both countries, but now I'm a Canadian tax resident.) Want to make sure my understanding of an exchange rate issue is correct, b/c I feel like I'm getting disproportionately screwed by it for my 2014 ...

[quote="nelsona"]
3. To you point about accrued income, if the TFSA holds Cdn mutual funds or ETFs (if the broker is allowed to sell you these), they will fall under the PFIC rules, which in most case require you to pay tax on the gains yearly, under amark-to-market process. So they are taxed every ...

I know that the IRS does not recognize the tax-sheltered status of the TFSA, but want to make sure my understanding is correct.

(First off, am I correct that the IRS will not tax mere [i]appreciation[/i] within your TFSA, if you don't realize those gains, right? e.g. let's say I've contributed $40 ...

Thanks for reply. Wow, one of the few areas where tax law seems to favor the individual if -- for individuals in my situation where I left and then returned to Canada -- I get to keep any gains (while i was in the US) tax-free, but get to undo the DD if a stock falls.

Seems like a remarkable ...

Something my accountant told me (and seems corroborated by reading I've done online) seems like a good opportunity given my life situation, but I want to ensure I'm understanding properly: If a country from which I'm emigrating back to Canada has no 'departure tax', then the cost basis for my stock ...

[quote="nelsona"]You don't pro-rate T-slips. You figure out what was paid to you as a Cdn resident, and what was paid to you as a US resident. You have all your statements.
[/quote]

Thanks.

I was under the impression that the ONLY place interest/dividends was reported was on the year-end T-slip ...

Trying to solve an annoying issue that I'm getting conflicting advice on from tax professionals.

I moved from Canada to the US in mid-2013 and am filing all of the "departure tax" forms, including the IRS forms on which I claim a stepped-up cost basis for the mutual funds that I held with Canadian ...

[quote="nelsona"]i) yes, you should have been reporting the growth.

ii) there are immedaite no tax benefits to contributing to a Roth or Roth401k. The benefits come from the tax-exemt income it generates.

iii) correct.

1. Yes. You should report the income until you can collapse the Roth ...

In 2008-2010 I was working in the US, but claiming Canadian residency for tax purposes (based on a closer-connection test.) During those years, I made approx $40,000 in payroll deduction contributions to my US employer's-sponsored Roth IRA, an account that's now worth approx $50,000.

Was that as ...

[quote="eortlund"]A couple years ago, the CRA required us to report our Roths to them, and agree that if we made a contribution to them while in Canada, they would immediately become taxable. I assume a conversion would be treated the same.[/quote]

Hm, I don't really see why it would be ...

I searched the internet for hours looking for the answer to this question...I couldn't even find anything close to it.

I'm a Canadian citizen, but I used to live/work in the US, during which time I contributed to a tax-deductible IRA (which is now worth around $35,000).

I'm now back in Canada and ...