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by nelsona
Sun Jan 09, 2005 9:41 pm
Forum: Canada / United States Tax & Accounting
Topic: foreign currency handling of sale of main home
Replies: 25
Views: 2642

I dare say you don't have a tax advisor, just someone wanting to collect money to submit your taxes to the Gov't.

<i>nelsona non grata</i>
by nelsona
Sun Jan 09, 2005 9:40 pm
Forum: Canada / United States Tax & Accounting
Topic: Getting Married to US Citizen and buying property
Replies: 5
Views: 5437

Who reports the income (in Canada) will depend on who owns the property. You will report the rental income (and depreciation, as you said) also on your joint US return while you are in US, and take a foreign tax credit on 1040. If you own it jointly, then yes, you will each have to file a '216' retu...
by nelsona
Sun Jan 09, 2005 11:41 am
Forum: Canada / United States Tax & Accounting
Topic: foreign currency handling of sale of main home
Replies: 25
Views: 2642

I'm said about all I'm going to say on this thread

<i>nelsona non grata</i>
by nelsona
Sun Jan 09, 2005 1:55 am
Forum: Canada / United States Tax & Accounting
Topic: foreign currency handling of sale of main home
Replies: 25
Views: 2642

Each year, every single Canadian resident or citizen, has the treaty-given right to file a full-fledged US 1040, just like any other US citizen. In years that he does not have to (whether by IRS regulation, or by virtue of the residency tie-breaker), the Cdn can choose not to file in US (29 million ...
by nelsona
Sat Jan 08, 2005 7:47 pm
Forum: Canada / United States Tax & Accounting
Topic: foreign currency handling of sale of main home
Replies: 25
Views: 2642

What was not relevant was your elaborate and convoluted cap gains calculations. This was merely an exercise in picking favourable exchange rates. Peters out of the East Coast wrote a great paper on why Cdns can use FEIE to exclude Cdn earned income in their US arrival year (meaning that one would ab...
by nelsona
Sat Jan 08, 2005 8:55 am
Forum: Canada / United States Tax & Accounting
Topic: foreign currency handling of sale of main home
Replies: 25
Views: 2642

You may be subject to sufficient other tax to duck below AMT, but I doubt it.

However your foreign income is used to determine AMT, thus your foreign tax credit may not help you.

Spend the $26 and get yourself Turbotax, eh.

<i>nelsona non grata</i>
by nelsona
Sat Jan 08, 2005 4:29 am
Forum: Canada / United States Tax & Accounting
Topic: foreign currency handling of sale of main home
Replies: 25
Views: 2642

By 'using software' I mean bona fide tax software, not a homemade spreadsheet. Another point: Most of your itemized deductions will go against your Cdn income, further reducing the Cdn tax usable as a FTC. There is also Foreign tax credit AMT, which prevents the tax on foreign income from being more...
by nelsona
Fri Jan 07, 2005 11:59 pm
Forum: Canada / United States Tax & Accounting
Topic: foreign currency handling of sale of main home
Replies: 25
Views: 2642

The IRS, as opposed to CRA, likes one to use an exact exchange rate for each transaction. CRA allows one to use one rate per year if one wishes. For the numbers you are talking about, your exercise hardly seems woth the effort, and there is little of 'cross-border' interst in it. It is the FTC,FEIE,...
by nelsona
Fri Jan 07, 2005 11:00 pm
Forum: Canada / United States Tax & Accounting
Topic: foreign currency handling of sale of main home
Replies: 25
Views: 2642

It is mathematically impossible for foreign tax credit to completely erase the US tax on the foreign income, as the US tax on your foreign income is at your marginal rate, but the foreign tax credit is at your effective rate. I'm serious about using software to do this, you are NOT doing it correctl...
by nelsona
Fri Jan 07, 2005 10:03 am
Forum: Canada / United States Tax & Accounting
Topic: Canadian Resident with a US 401K Withdrawal
Replies: 8
Views: 3767

Yup. Other than the mangement issue, the only other possible reasons to transfer it up to Canada would be: (a) estate tax issues: An RRSP would not be subjet to US estate tax, an IRA would. Additionally if one is married RRSP is completely transferable to spouse without immediate tax. This <i>might ...
by nelsona
Fri Jan 07, 2005 9:02 am
Forum: Canada / United States Tax & Accounting
Topic: Drivers' licenses.
Replies: 3
Views: 1131

One reason to give back your Cdn DL would be for the refund, if you were in a 'gov't insurance' province.

We got back over $100 when we returned our QC DLs, a few months after moving.

If you paid $10 for your DL, then that is not an issue.

<i>nelsona non grata</i>
by nelsona
Fri Jan 07, 2005 8:59 am
Forum: Canada / United States Tax & Accounting
Topic: RESP Registered Education Saving Plan Withdrawal
Replies: 9
Views: 2836

IT-221 has indeed drastically changed, in 2002, especially the notion of 'deemed non-resident', an animal that was created by CRA in 1997 to 'force' fat-cats into non-residency to trigger their deemed dispo. The result, after the economic turn-down in 2000, was that deemed dispos dried up, and now b...
by nelsona
Fri Jan 07, 2005 8:51 am
Forum: Canada / United States Tax & Accounting
Topic: foreign currency handling of sale of main home
Replies: 25
Views: 2642

I agree with your exchange rate strategy. Be careful about the foreign tax credits, though. Use a tax program to calculate this, as you will likely find that you will not get much more than 1/2 of your Cdn taxes as a credit, once all the limits kick-in. If I was going to file full-year in your situa...
by nelsona
Thu Jan 06, 2005 11:09 pm
Forum: Canada / United States Tax & Accounting
Topic: foreign currency handling of sale of main home
Replies: 25
Views: 2642

I'd say unnecesarily complicated. You bought a house at one US price and sold it at another. If you want to fold in the currency fluctuation, just do so as part of the cost basis and proceeds from the house transaction. Besides, unless you had very little Cdn income before you returned to US, filing...
by nelsona
Thu Jan 06, 2005 11:04 pm
Forum: Canada / United States Tax & Accounting
Topic: Canadian taxes...
Replies: 5
Views: 2343

It is NOT illegal to hold multiple licenses, unless the particular state/province pairing have such an understanding. My State for example is NOT PERMITTED to take or void a Cdn drivers license. So to cancel it I had to write to the Provincial Board, as I did with Healthcare. Note: Under the new ter...