Serbinski Accounting Firms

Ok I think I got it. For the $2500 qualified dividends I refer to the worksheet to see if they are taxed at 0%, 15% or 20%. For the $2500 of ordinary dividends I use the general effective tax rate ($2500/AGI * total tax).

I then add the two amounts of tax together and if they are more than 15 ...

Ok great thanks. Yes, I only included the income before departure.

If 1b is included in 1a I feel like the qualified dividend portion 1b is double taxed on the 1040. Once at your normal graduated rates on line 9a with everything else and again at a reduced special tax on 9b on the dividend ...

Yes I did miss your last comment or more likely didn't understand it correctly.

Ok I think I get it now. I kind of thought that I had to use the "specific" effective tax rate for the div's and cap gains as they are taxed differently. I'm guessing the effective rate will be less than 15%, as your ...

Read you could claim tax on cap gains on line 232 as per this post.

http://forums.serbinski.com/viewtopic.php?t=8234&highlight=similarly+cap

I have capital gains and the following from a 1099-DIV (approximate values for simplicity):

1a: Ord Div $5000
1b: Qual div $2500
2a: Cap gain dist’n $5000 ...

Thanks Nelsona, we treated them as a separate class as you suggested.

We’re having trouble with one last thing; the foreign tax credits (FTC) to claim on the Canadian side for the investments.

I read as many other posts as I could and came to the following conclusion. To figure the amount of FTC we use the amount of investment income divided by AGI line 37 (not taxable income) multiplied by total tax (not including FTC and tax withheld at source). Total tax includes all extra tax from line 44 to 73, reduced by all extra credits from the same lines.

We can claim up to 15% for dividends and claim any excess as a deduction on line 232.

Interest and capital gains can’t be claimed as a FTC at all, but can be used as a deduction on line 232.

Does this all sound correct?

For line 232 is it considered a deduction under 20(11) or 20(12) or something else? I read “US tax credit denied by Article XXIV(4) or (5)â€￾ on another post, perhaps this is what I write on line 232 not 20(11) or 20(12)?

Hi Nelsona,

We just started preparing the T1161 and T1243 forms for our stocks. We are confused about one more thing. As mentioned, we had some stocks before we immigrated to Canada and bought some after we were here. Only the stocks that were purchased after we arrived will be deemed to be ...

Ok thanks for explaining this further. We will take your advice and ignore this.

I don't think 45(3) will work for us because we claimed depreciation on it in Canada the last several years to match the tax on the US side a bit better. CRA website says you can only use it if no depreciation has ...

Ok thanks.

So even know the rental period stopped in March when my wife moved back in, it’s not deemed to be disposed at this point in time? Is this because I didn’t move in at the same time?

Sorry to question this further, I’m just trying to make sure I understand this correctly. CRA’s ...

My husband and I are US citizens and have been living in Canada for about 4 years. Have jointly owned US rental property (which was our principal residence) and non-retirement investments in US. We moved back to the US in 2015. I did a ton of reading on this forum and it looks like the rental ...