Serbinski Accounting Firms

Hello. I'm a Canadian citizen living in the US. This is the first year (2024) that I will have to pay the Net Investment Income Tax as per form 8960. It says that 1099-INT and 1099-DIV totals have to be included in the calculations, but I could not find any reference to 1099-OID. Do I also have to a...

LPR planning a return to Canada. meeting all three conditions to avoid being considered a "covered expatriate" therefore not subject to US exit tax. Purchased US Treasury Stripped bond 15Aug40 at issue in 2013, and has been reporting earned interest yearly under OID rules. Current market v...

Thanks Nelsona, That's also what I thought (that interest income is only taxable by the IRS when received) until I came across publication P1212 from the IRS (https://www.irs.gov/publications/p1212). It states that accrued interest must be reported yearly on any multi-year bond purchased at a discou...

Sorry for the typo...
Should have said: 5-Year C$5,000 Quebec Bond maturing on 31 Dec 2023...

Hi, I'm a Canadian citizen residing full-time in the US. This year, I have to start reporting accrued interest on Original Issue Discount (OID) bonds for the first time and my Canadian broker unfortunately does not provide me with a 1099-OID. I got it figured out for US T-Bills but I can't find any ...

Thank you, I will certainly take a look at Section 217.

Another question if I may: If I report accrued interest from OID (STRIP) securities held in Canada, on which there is no Canadian tax withheld, would these increase the FTC portion?

Thanks again for your valuable insight!

Hello, I have started to take periodic RRIF distributions this year. As expected, there is a 15% CRA withholding tax on the total amount. I have also computed the book value of the RRIF at the date I became a US resident so only the prorated amount of the distribution will be taxable by the IRS. My ...

Thanks, all clear now... gross is net :-)

Hi, green card holder for 7 years now. I'm planning to convert RRSP to RRIF and start periodic withdraws with 15% CRA tax withheld. On Foreign Tax Credit form 1116 line 1a, will I put the total amount of the withdrawal or only the amount that is taxable by the IRS? Putting the total amount reduces t...