Search found 19 matches
- 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.
- 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 ...
- 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...
- 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...
- 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...
- 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?
Where to report the withdrawal? Can it be done just by appending a comment to the US tax return submitted by mail?
- 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...
- 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.
- 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. ...
- 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...
- 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?
- 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"?
- 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...
- 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...
- Wed Apr 21, 2021 11:56 pm
- Forum: Canada / United States Tax & Accounting
- Topic: dual citizen, capital gains on selling the home
- Replies: 13
- Views: 7979