Serbinski Accounting Firms

"on the income since it's US Sourced' but it's NOT US sourced albeit paid by a US person DE Corp

Two points worth mentioning FYI are:
1 - filing a treaty tiebreaker return jeopardizes your green card
2- making an election Under ITA 45(2) to deem that no Change in Use has occurred - IF you rent out your Cdn property that you plan to claim as principle residence upon later sale.

"your lawyer", no, poster is saying it's the purchasers' lawyer. The other side always takes extra CYA caution even if this means ignoring true law. Same goes on in USA sales with FIRPTA w/h and the buyer-side lawyers need to be educated with IRS (or in your case) CRA citations. Hopefully ...

and since your RRSP is employer sponsored (aka GROUP RRSP contributions through workplace) and you're in the US, you should at least investigate eligibility under the treaty XVIII(12) to deduct (up to the 401k limited amount) on your 1040 contributions to your RRSP and if long-term this is a good pl...

FBAR filing is simple, fast and easy and does not require professional knowledge. What trips people up is determining whether or not an account must be included. But guess what? No harm done by including all.

cammy - if dad owned US stocks as many Cdns do, that's US situs property and subject to US estate tax but with treaty exemption allowance pro-rata for Cdns. US situs/worldwide assets

trobonson re "To my surprise IRS allowed the claim and paid the refund." That's not what happened. IRS processed the return and issued the refund. Until years pass, you will not know if IRS 'allowed' the claim. A famous example of this is a woman who filed a slavery repatriation tax credit...

IRS won't issue ITIN for 529 cause. Instead fit yourself into one of the W7 application reasons and one return filing exception. Also, even if you put your kids on your 1040, IRS will only issue them ITINs if their being on your 1040 produces a tax benefit for you such as a child tax credit.

Aside from the 1042-S reporting, you've got to track down the actual $ remittance. Ask the wh agent for proof of that. Ask IRS (or check yourself on your IRS account online) if they have record of all of the 1042-s slips under your name and TIN. If they do, you know the problem's the money remittanc...

RE: A foreign person does not enjoy the same exemption as a US person, so do not rely on that. A Cdn does via treaty enjoy on a pro-rated basis (US situs assets over w/w assets) the same exemption as a US person, so DO rely on that. Therefore, RE: I realize that he won't owe any taxes to the IRS sin...

A Cdn PEO would make you a proper Cdn employee and then you'd receive T4.

On the IRS side, make sure to comply with 8938 and FBAR requirements regarding non-USA accounts and assets.

The company needs put you on a T4A or make a T4 arrangement with a Cdn PEO. If instead it issues you 1099-NEC, it's ideal for you to file a NIL 1040NR with IRS explaining why reporting NIL vs the 1099-NEC IRS expects.

say that to Frommontreal2AZ. I responded to his 2024 addition

Fug 1 2. Should I get compliant with 8938 and FBAR before I make this change? If so, how does one go about doing that? Amend my previous 3 years of returns? file streamlined amended 1040s before it closes. https://www.irs.gov/individuals/international-taxpayers/us-taxpayers-residing-outside-the-unit...