Search found 272 matches

by eortlund
Wed Mar 16, 2016 3:37 pm
Forum: Canada / United States Tax & Accounting
Topic: another question on moving rrsps
Replies: 36
Views: 5704

another question on moving rrsps

I was at the bank today discussing our options. Periodic pension payments as we would have with RRIF payments are actually not taxed at all for UK residents, unlike the 15% rate in the US. This seems like a good way to do it, especially as our UK income wont be high and so the tax shouldn't be too h...
by eortlund
Thu Mar 10, 2016 5:34 pm
Forum: Canada / United States Tax & Accounting
Topic: Collapsing RRSP after leaving Canada
Replies: 13
Views: 2510

Well, we are moving to the UK so that would be retirement investments in 3 countries. The UK doesn't recognize the RRSP as tax deferred which is likely OK as long as we don't go over the capital gains exemption but the longer it grows, the more likely we will. Plus I have heard nelsona say over and ...
by eortlund
Thu Mar 10, 2016 1:26 pm
Forum: Canada / United States Tax & Accounting
Topic: Collapsing RRSP after leaving Canada
Replies: 13
Views: 2510

Thanks, yes I do have those contribution amounts in a file. Reminds me I should make sure it is up to date for 2015. This website has been a huge help over the years.
by eortlund
Wed Mar 09, 2016 6:21 pm
Forum: Canada / United States Tax & Accounting
Topic: Collapsing RRSP after leaving Canada
Replies: 13
Views: 2510

And one more question. Is it still a good idea to "step up" the cost base by selling and repurchasing all the investments before we go? Or is that no longer necessary, or not something that benefits Americans?
by eortlund
Wed Mar 09, 2016 3:29 pm
Forum: Canada / United States Tax & Accounting
Topic: Collapsing RRSP after leaving Canada
Replies: 13
Views: 2510

But I could collapse after I leave right away if I want to? We will leave the country beginning of July but my husband still gets paid through the end of July. I assume our departure date would be after that?
by eortlund
Wed Mar 09, 2016 3:28 pm
Forum: Canada / United States Tax & Accounting
Topic: Collapsing RRSP after leaving Canada
Replies: 13
Views: 2510

Yes, I would definitely wait until after we were non-resident. I assumed we would tell our RRSP custodian our new address right away so they will know. I can see how there could be advantages to leaving it here, but I see it being a hassle long-term. Would like to have a simpler financial life if we...
by eortlund
Tue Mar 08, 2016 5:29 pm
Forum: Canada / United States Tax & Accounting
Topic: Collapsing RRSP after leaving Canada
Replies: 13
Views: 2510

Collapsing RRSP after leaving Canada

Sounds like this may be the best thing to do. Together we have about 70K or so and moving it out of Canada would be simplest. -I know that I should wait until we have left Canada. If we leave the country July 28, can we move it July 29? Or should we wait longer to make sure we are considered non-res...
by eortlund
Mon Mar 07, 2016 3:45 pm
Forum: Canada / United States Tax & Accounting
Topic: using carryover foreign tax credits in the future
Replies: 2
Views: 916

Thanks! Makes sense.
by eortlund
Sat Mar 05, 2016 5:00 pm
Forum: Canada / United States Tax & Accounting
Topic: using carryover foreign tax credits in the future
Replies: 2
Views: 916

using carryover foreign tax credits in the future

I have not yet had an opportunity to use these. If I did, can they be used to offset general or passive income, regardless of how they were generated? Or does it have to correspond with how they were earned? And would pension or other retirement income be considered general or passive income?
by eortlund
Thu Mar 03, 2016 5:20 pm
Forum: Canada / United States Tax & Accounting
Topic: Self-employment income in US and tax
Replies: 14
Views: 2111

Thanks! I think I get it now.
by eortlund
Thu Mar 03, 2016 12:22 pm
Forum: Canada / United States Tax & Accounting
Topic: Self-employment income in US and tax
Replies: 14
Views: 2111

Wow, that seems confusing. So are you saying if I was just Canadian, and I made income in the US, Canada would not tax it? It's only taxed because we are US citizens? That can't be right. As for your second post, when I entered the income into my Canadian return as foreign income, but with no foreig...
by eortlund
Thu Mar 03, 2016 11:53 am
Forum: Canada / United States Tax & Accounting
Topic: Self-employment income in US and tax
Replies: 14
Views: 2111

No I didn't realize that Canada would not allow any tax credit for the US tax. Why not? That seems strange that they would not allow a foreign tax credit. Is it because it is self-employment income? But yes, I did realize I have to tell Canada about it, just assumed I would get a tax credit.
by eortlund
Thu Mar 03, 2016 10:41 am
Forum: Canada / United States Tax & Accounting
Topic: Self-employment income in US and tax
Replies: 14
Views: 2111

I ran the numbers, re-sourcing on a 1116 to Canada and found the tax would be way higher than if we just paid it to the US.

When you say a compliance letter, how does this work? Do you have a link to how I would get this? And how would I enter this into the turbo tax program?
by eortlund
Wed Mar 02, 2016 6:28 pm
Forum: Canada / United States Tax & Accounting
Topic: Self-employment income in US and tax
Replies: 14
Views: 2111

Actually, I was searching TurboTax, and it said they would not add Social Security tax in if it wasn't already there. So perhaps the tax it said we owed does not even include it?
by eortlund
Wed Mar 02, 2016 6:17 pm
Forum: Canada / United States Tax & Accounting
Topic: Self-employment income in US and tax
Replies: 14
Views: 2111

If we don't re-source the income, how do we get out of paying the SS tax?