Search found 16349 matches

by nelsona
Fri Jun 19, 2020 2:47 am
Forum: Canada / United States Tax & Accounting
Topic: What tax do I need to pay if I have a corp-to-corp job under TN
Replies: 3
Views: 121

Re: What tax do I need to pay if I have a corp-to-corp job under TN

As long as you do not establish a base in US (by being present more than 1/2 the time over any 365-day period, you should only have to pay Cdn taxes on your remuneration.
by nelsona
Thu Jun 18, 2020 4:04 pm
Forum: Canada / United States Tax & Accounting
Topic: CPP/QPP and Social Security
Replies: 4
Views: 105

Re: CPP/QPP and Social Security

Indexing is attractive (not the 8% yearly increase, which is foolish reasoning). However, your wise use of the money should far outstrip the indexing benefit. I view the "reward for waiting" a complete falacy. It is like saying, Start working for me this year, without pay, and I will give you 8% mor...
by nelsona
Thu Jun 18, 2020 3:37 pm
Forum: Canada / United States Tax & Accounting
Topic: IRA to Roth IRA and canadian tax credit
Replies: 6
Views: 167

Re: IRA to Roth IRA and canadian tax credit

I believe you would only be able to clim the 401(k) contributions that were made WHILE resident in canada. So contribute as much as you want BEFORE leaving, if you wnt it to be included on your CDn return.
by nelsona
Thu Jun 18, 2020 3:34 pm
Forum: Canada / United States Tax & Accounting
Topic: CPP/QPP and Social Security
Replies: 4
Views: 105

Re: CPP/QPP and Social Security

I've done some work on this, and it is probably better to stagger the dates when you begin each pension, like you state. BUT, Personally I believe one should take CPP first, if one is not working, at 60 if possible. Waiting will result in a break-even well into one's 80's. Do you know many 80-yr old...
by nelsona
Thu Jun 18, 2020 3:24 pm
Forum: Canada / United States Tax & Accounting
Topic: US non-residents and their 401K accounts south the border
Replies: 9
Views: 3123

Re: US non-residents and their 401K accounts south the border

Yes, but MOST if not all brokerages will not deal with new customers once they leave US, so this is best done before leaving US. But in any event, such transfers would not be considered a taxable event in either country. A 401(K) to a Roth would of course be considered income, and one would not want...
by nelsona
Tue Jun 16, 2020 9:10 pm
Forum: Canada / United States Tax & Accounting
Topic: IRA to Roth IRA and canadian tax credit
Replies: 6
Views: 167

Re: IRA to Roth IRA and canadian tax credit

The taxes you pay in canada are NOT eligible for foreign tax credit on 1040 (form 1116). You won;t need to include the paystub. HJUst track it yourself. The US taxes you include on your CDn return will be the PRORATED portion of your US taxes calculated on your 1040, if you report 30% of your US inc...
by nelsona
Mon Jun 15, 2020 3:04 pm
Forum: Canada / United States Tax & Accounting
Topic: IRA to Roth IRA and canadian tax credit
Replies: 6
Views: 167

Re: IRA to Roth IRA and canadian tax credit

So I assume you have an existing IRA? It is good to make any IRA withdrawal (be it to cash or to a Roth) while not a Cdn resident. NEVER do a IRA to Roth conversion while in Canada. As to the idea of increasing your overall tax rate just to increase the portion of US tax that you can use towards the...
by nelsona
Mon Jun 15, 2020 2:40 pm
Forum: Canada / United States Tax & Accounting
Topic: Taxable income calculation after RRSP withdrawal
Replies: 4
Views: 136

Re: Taxable income calculation after RRSP withdrawal

Btw, your US pensions will be treated the same way if you move to canada: 100% taxable in US and Canada.
by nelsona
Mon Jun 15, 2020 2:38 pm
Forum: Canada / United States Tax & Accounting
Topic: IRS/CRA gift reporting and tax
Replies: 4
Views: 125

Re: IRS/CRA gift reporting and tax

how about you decide what they need when they buy the house. No need to complicate matters.
by nelsona
Mon Jun 15, 2020 2:37 pm
Forum: Canada / United States Tax & Accounting
Topic: Taxable income calculation after RRSP withdrawal
Replies: 4
Views: 136

Re: Taxable income calculation after RRSP withdrawal

IRS Code 72(w) or I believe. It is pension money, contributions for which you did not have to pay tax on in canada or US, thus by IRS rules, it is fully taxable in US. It is NOT the sane as RRSPs for which you have some contributions. The fact that these were morphed into other accounts that "look" ...
by nelsona
Mon Jun 15, 2020 6:33 am
Forum: Canada / United States Tax & Accounting
Topic: IRS/CRA gift reporting and tax
Replies: 4
Views: 125

Re: IRS/CRA gift reporting and tax

Once you go over the individual gift limit, you then use your lifetime exemption, which is in the $11M range, so there will be no tax, just reporting. See IRS Form 709.
by nelsona
Mon Jun 15, 2020 6:28 am
Forum: Canada / United States Tax & Accounting
Topic: IRS/CRA gift reporting and tax
Replies: 4
Views: 125

Re: IRS/CRA gift reporting and tax

This is agift in IRS terms, and is subject to gift tax, since it exceeds the annual limit you can give, to non-spouse. Read up on gift tax on IRS website.
by nelsona
Sun Jun 14, 2020 5:27 pm
Forum: Canada / United States Tax & Accounting
Topic: moving back to Canada questions
Replies: 3
Views: 147

Re: moving back to Canada questions

1. Are you really making $500,000 gain on this house?! I woud be selling as quick as possible in this market.
3. If you are planning to cash out, then do it before becoming Cdn resident, otherwise your withdrawal will be subject to Cdn tax.
by nelsona
Sun Jun 14, 2020 5:24 pm
Forum: Canada / United States Tax & Accounting
Topic: T1161
Replies: 1
Views: 58

Re: T1161

Cdn real estate is taxable Cdn properryy, so the exclusion doesn;t apply. You should have listed all your possessions that meet the criteria of T1161, including any Cn real estate you had.
by nelsona
Sat Jun 13, 2020 2:27 pm
Forum: Canada / United States Tax & Accounting
Topic: moving back to Canada questions
Replies: 3
Views: 147

Re: moving back to Canada questions

1. Since it was not your main home for the full 2 years, you do not get the full $250,000 exclusion each, but, because this is a move for work, you get a partial exclusion (you can calculate this in IRS Pub 523). Roughly 3/4's of the full amount. Remember that renovations may add to your cost bases,...