Search found 15945 matches

by nelsona
Mon Dec 20, 2004 10:24 pm
Forum: Canada / United States Tax & Accounting
Topic: nr tax clarification in departure year
Replies: 3
Views: 3935

Yup.

Remember to pay only the rate for the country in which you live (presuming Canada has a treaty with it).

Some income mey even be exempt for NR tax by treaty.

Otherwise it's 25%.

<i>nelsona non grata</i>
by nelsona
Mon Dec 20, 2004 5:05 pm
Forum: Canada / United States Tax & Accounting
Topic: nr tax clarification in departure year
Replies: 3
Views: 3935

Usually and investment firm only issues one tax recepit. In a departure year, it should be an NR form, even if only one month of the tax was NR. Your firm did the reverse, but this is no big deal: You are still responsible for correcting any mistakes that your firm mande. Just figure out what was in...
by nelsona
Mon Dec 20, 2004 5:01 pm
Forum: Canada / United States Tax & Accounting
Topic: Canadian Resident with a US 401K Withdrawal
Replies: 8
Views: 3744

Didn't you just ask this question on another tax board? 1. You do need to file a tax return, as it appears that incorrect withholding was made on your withdrawal, plus you have to pay a penalty on the excess of first $10,000 that you used to buy a house (this exemption is ONLY if you didn't have aho...
by nelsona
Mon Dec 20, 2004 1:50 am
Forum: Canada / United States Tax & Accounting
Topic: RRSP Taxability
Replies: 64
Views: 33321

No, you are completely ON TOPIC. These are recognized PENSION PLANS, and are thus treated like any other pension in the US (ie. fully taxable upon withdrawal, no special reporting requirements). RRSPs are treated specially, both in the mannner in which they are disclosed to IRS, and the manner in wh...
by nelsona
Mon Dec 20, 2004 1:45 am
Forum: Canada / United States Tax & Accounting
Topic: Managing IRA Account From Canada
Replies: 11
Views: 5871

Your experience highlights the final step in being able to manage an IRA from Canada.

Even after all the hurdles from SEC, OSC, etc are crossed, you still have to find a willing broker.



<i>nelsona non grata</i>
by nelsona
Sat Dec 18, 2004 4:17 pm
Forum: Canada / United States Tax & Accounting
Topic: Managing IRA Account From Canada
Replies: 11
Views: 5871

Additionally, the Securities Commission for your new province of residence ALSO has something to say about these arrangements, as they must oversee any trades made by residents of your Province. A Schwab broker down in Tuscaloosa is hardly going to be licensed to carry on activities in Ontario. He n...
by nelsona
Sat Dec 18, 2004 3:34 pm
Forum: Canada / United States Tax & Accounting
Topic: Canadian Mortgage vs US Tax Laws
Replies: 4
Views: 4706

It is indeed unlikely that a US lender will grant a mortgage for a Cdn property. For tax deduction however, it does not matter. One thing to watch for though is that a CDn bank lending to a US person (US tax resident) is required to 'bump up' the interest rate 10% and remit this extra amount to IRS....
by nelsona
Sat Dec 18, 2004 1:47 am
Forum: Canada / United States Tax & Accounting
Topic: RRSP Taxability
Replies: 64
Views: 33321

One last point: While the treaty does classify RRSP under pensions, this only means that IRS must put in place a way for Cdn/US taxpayers to defer taxation. That is the only stipulation in the treaty. The manner in which it decides to tax is only LIMITED to include the income that the 'source' state...
by nelsona
Fri Dec 17, 2004 2:29 pm
Forum: Canada / United States Tax & Accounting
Topic: RRSP Taxability
Replies: 64
Views: 33321

Agreed. If it were that simple in IRS eyes however, Rev Proc 2002-23 would have simply been one line: "A Cdn RRSP is considered a pension, with all gross distributions being reported on both line 16(a) and 16(b)." That is how the Company Pension I will recieve from my former Cdn employer will be rep...
by nelsona
Fri Dec 17, 2004 2:27 am
Forum: Canada / United States Tax & Accounting
Topic: RRSP Taxability
Replies: 64
Views: 33321

Mark's inclusion of 72(w) is indeed interesting, as it refrs to a new section of the code. However, as it has been explained to me, this applies to company pensions (what Cdns call RPPs), NOT RRSPs, (note the references to 'service' from 'without the US'). An RRSP has never been recognized as a fore...
by nelsona
Fri Dec 17, 2004 1:36 am
Forum: Canada / United States Tax & Accounting
Topic: Canadian Mortgage vs US Tax Laws
Replies: 4
Views: 4706

Of course. If it is your 'home' (you are allowed 2) then the interest is deductible as Home Mortgage (schedule a). If it is an investment property, the interest is deductible as an expense against the rent. There is nothing in The tax code that requires the home/property to be in US to take advantag...
by nelsona
Wed Dec 15, 2004 10:18 pm
Forum: Canada / United States Tax & Accounting
Topic: RRSP Taxability
Replies: 64
Views: 33321

... and just one more point. If all RRSP/RRIF withdrawals were to reported, why does Rev Proc 2002-23 (currently in force) ask one to determine, when transferring an account, exactly w=how much income had previously been deferred? It is so that when fianlly making a withdrawal from this new account,...
by nelsona
Wed Dec 15, 2004 10:00 pm
Forum: Canada / United States Tax & Accounting
Topic: RRSP Taxability
Replies: 64
Views: 33321

the portion referring to 'non-resident' aliens of course does not apply here, for 2 reasons: First Cdns living in US are not non-resident aliens. Second the non-discrimination clause of the treaty forbids Cdns to be treated more severely than Americans in taxation. Since by the sections you quote, a...
by nelsona
Tue Dec 14, 2004 3:42 pm
Forum: Canada / United States Tax & Accounting
Topic: NR taxes for nonresidents of canada
Replies: 3
Views: 4292

Depends what the T5 income is.<p>If it is capital gains it isn't taxed in Canada by treaty, so an NR slip would be pointless.

<i>nelsona non grata</i>
by nelsona
Fri Dec 10, 2004 2:06 pm
Forum: Canada / United States Tax & Accounting
Topic: Please read/post about RRSP in US Here!!!
Replies: 59
Views: 30217

The gains/income that occured in your RRSP between your arrival in US and your divorce, is YOUR income, not hers. Thus you have to account for it, not her. Besides, by you taking it, you get to exclude it. Your ex living in Canada doesn't even have to bother with US tax reporting at all. The treaty ...