Serbinski Accounting Firms

Hi, we know all about the one-time CRA election that lets a new Canadian immigrant Roth IRA holder prevent future taxation on the Roth under Treaty XVIII 3(b) and (7). My question is, in the case of a Canadian resident dual citizen inheriting a Roth IRA from his deceased US resident mother, we know ...

Take the case of a medical doctor who moved to the US and formally departed Canada for tax purposes in 2019, but who will continue to perform his medical services exclusively in a remote location in northern Canada by commuting back and forth. The question is whether he'll remain taxable in Canada a...

If a Canadian who moved to the US already filed their US tax return for the year of the move with the treaty election under XIII(7) to bump up ACB to FMV on all assets subject to departure tax, do you have any idea if the US return can be amended after the fact and the bump-up election reversed?

Thank you!

Eddy Eager and Larry Lazy are both RRSP holders of the same age (under 71) who move to the US in fall 2017. Eddy converts his RRSP to a RRIF before year-end 2017, while Larry converts his in early 2018. Since the ITCIA periodic payment definition relies on a start of year RRIF value, does Eddy techn...

Thank you nelsona.

The common wisdom is NOT to notify CRA of Cdn departure except by way of indicating the departure date on the exit return due the following April. Similarly, the common advice about notifying all payors about the address change so as to sever ties and ensure proper withholding extends to Service Can...

Nelsona, you're absolutely right. I was conflating the IRS reg. on FDAP with the (lack of) Treaty definition of "periodic." Reg. language obviously has no bearing on treaties. I first came across this conflation in this author's seemingly authoritative article on IRA/401k wdls. which may b...

Re NRA withholding on FDAP income, IRS rule 1.1441-2(b)(ii) says that it is immaterial whether the payment is made in a series of payments or in a single lump sum. According to this logic, for US source pension withdrawals made by NRAs, both lump sum AND periodic withdrawals should fall under Treaty...

Thanks so much nelsona!

Canadian citizen and resident will be taking distributions from a pre-tax 403b plan that she inherited from her deceased husband. She needs to fill out a W8-BEN to claim the 15% treaty withholding instead of the usual 30% on distributions. --They've told her that she needs to apply for an ITIN first...

Ok, thanks for the reply.

Nelson, a few questions related to bump-ups at Cdn departure. Will be brief: 1) Is bump-up of CB to FMV at Cdn exit on principal residence for non-US persons by XIII(6) an AUTO bump, i.e. nothing needs to be done, automatic step-up? 2) Are you aware of any other AUTO bumps at departure besides Princ...

Thank you very much for reply. Will try to be briefer next time.

Nelsona, here are some questions I have on the options available (both from Cdn ITA & US IRC domestic points of view and from Treaty point of view) to a departing non-U.S. person (i.e. non-U.S. citizen and non-green card holder) with respect to their Cdn principal residence at the time of Canadi...