Search found 19 matches

by igrek
Thu Jun 09, 2022 6:21 pm
Forum: Canada / United States Tax & Accounting
Topic: subtracting RPP contributions when reporting Canadian salary
Replies: 2
Views: 2679

Re: subtracting RPP contributions when reporting Canadian salary

Thank you. Indeed, I was looking at the older version.
by igrek
Thu Jun 09, 2022 5:16 pm
Forum: Canada / United States Tax & Accounting
Topic: subtracting RPP contributions when reporting Canadian salary
Replies: 2
Views: 2679

subtracting RPP contributions when reporting Canadian salary

Dual citizen, resident of Canada, income only from Canada. I have a Registered Pension Plan (RPP) from work (defined benefit plan). In 2011-12, my US taxes were prepared by a large and expensive cross-border accounting firm. When they reported my salary on 1040, they deducted the contributions made ...
by igrek
Tue Mar 29, 2022 4:15 pm
Forum: Canada / United States Tax & Accounting
Topic: Capital gain from selling principal residence and foreign tax credit
Replies: 10
Views: 2859

Re: Capital gain from selling principal residence and foreign tax credit

When I add the passive 1116 for the sale of house, even though there is no Canadian tax on passive income, line 18 in the general category 1116 gets strongly reduced as apparently this entry is now computed taking into account the adjustment coefficient for long term capital gains (not sure why it i...
by igrek
Tue Mar 29, 2022 12:16 pm
Forum: Canada / United States Tax & Accounting
Topic: Capital gain from selling principal residence and foreign tax credit
Replies: 10
Views: 2859

Re: Capital gain from selling principal residence and foreign tax credit

If there are no foreign taxes on passive income, should the capital gain from selling Canadian principal residence still be included in passive category form 1116? Or it should be simply omitted from this form? If the capital gain is 700K USD and the exclusion for married filing jointly is 500K, wha...
by igrek
Mon Mar 28, 2022 5:28 pm
Forum: Canada / United States Tax & Accounting
Topic: Capital gain from selling principal residence and foreign tax credit
Replies: 10
Views: 2859

Capital gain from selling principal residence and foreign tax credit

Does long-term capital gain from selling Canadian principal residence (not taxed in Canada) affect how Canadian tax is apportioned between different income categories for foreign tax credit in US tax return? Here is a simplified situation (dual citizen): Suppose that the l.t. capital gain from selli...
by igrek
Tue Sep 21, 2021 10:04 am
Forum: Canada / United States Tax & Accounting
Topic: RRSP loss reporting
Replies: 3
Views: 1179

Re: RRSP loss reporting

Thank you. No, it is not the last RRSP.

Where to report the withdrawal? Can it be done just by appending a comment to the US tax return submitted by mail?
by igrek
Mon Sep 20, 2021 5:27 pm
Forum: Canada / United States Tax & Accounting
Topic: RRSP loss reporting
Replies: 3
Views: 1179

RRSP loss reporting

I had a small RRSP (about 5K) for a number of years from which I withdrew all money recently. From the US perspective it is a loss, because Canadian dollar fell over these years against USD; after converting in US dollars, the amount deposited was higher than the amount withdrawn. How to report this...
by igrek
Tue May 11, 2021 8:46 pm
Forum: Canada / United States Tax & Accounting
Topic: Capital Gains on Foreign Currency
Replies: 7
Views: 2636

Re: Capital Gains on Foreign Currency

Is the foreign exchange gain taxed by the U.S. at capital gains rate or at (higher) ordinary income rates? Different sources say different things.
by igrek
Mon May 10, 2021 11:42 pm
Forum: Canada / United States Tax & Accounting
Topic: Capital Gains on Foreign Currency
Replies: 7
Views: 2636

Re: Capital Gains on Foreign Currency

Thank you Nelsona. I understand that with large loans taken in Canada, if CAD decreased with respect to USD, a way to eliminate the US tax would be to re-pay the loan in small installments. For example, a $200,000 loan could be re-paid within a year by making 200 daily re-payments each worth $1000. ...
by igrek
Sat May 08, 2021 9:27 pm
Forum: Canada / United States Tax & Accounting
Topic: Capital Gains on Foreign Currency
Replies: 7
Views: 2636

Re: Capital Gains on Foreign Currency

I could not find a clear answer on Internet about how this works with loan / mortgage interest. The unclear part is whether the interest you pay is counted as part of your payment back. To use a simple example: Suppose you borrow $1 million CAD when exchange rate is 1:1 (so it is worth $1 million US...
by igrek
Tue Apr 27, 2021 6:18 pm
Forum: Canada / United States Tax & Accounting
Topic: dual citizen, capital gains on selling the home
Replies: 13
Views: 7979

Re: dual citizen, capital gains on selling the home

The amount of mortgage at discharge should also include the interest paid, right? Then the Foreign Mortgage gain would rarely be positive, even if the exchange rate changes unfavorably. Do I understand this correctly?
by igrek
Tue Apr 27, 2021 9:15 am
Forum: Canada / United States Tax & Accounting
Topic: dual citizen, capital gains on selling the home
Replies: 13
Views: 7979

Re: dual citizen, capital gains on selling the home

If there is a Foreign Mortgage Gain (a positive difference between the value of mortgage in US dollars when taken and when discharged due to a change in exchange rate), is it attributed to the General Category Income on form 1116 "Foreign Tax Credit"?
by igrek
Fri Apr 23, 2021 12:21 am
Forum: Canada / United States Tax & Accounting
Topic: dual citizen, capital gains on selling the home
Replies: 13
Views: 7979

Re: dual citizen, capital gains on selling the home

The long-term capital gains rate is 15% if the taxable income is below certain threshold ($501,600 if married filing jointly in 2021) and 20% if the income is above the threshold. So, my understanding is that if the capital gains from selling the home are $800,000, other income $200,000, then the ra...
by igrek
Thu Apr 22, 2021 4:28 pm
Forum: Canada / United States Tax & Accounting
Topic: dual citizen, capital gains on selling the home
Replies: 13
Views: 7979

Re: dual citizen, capital gains on selling the home

Are there any other US taxes associated with selling the primary residence (other than the capital gains tax)? I've seen an opinion that the 3.8% Obamacare tax is applicable to the portion of the capital gains above the $500,000 exclusion threshold. Is this correct? Also, is there anything related w...