Search found 309 matches

by MGeorge
Tue Feb 19, 2019 1:49 pm
Forum: Canada / United States Tax & Accounting
Topic: How to report Canadian Maternity Benefits
Replies: 7
Views: 1071

Re: How to report Canadian Maternity Benefits

My understanding is that these types of benefits fall under the category of "unemployment compensation" line 19.
by MGeorge
Fri Feb 15, 2019 12:08 pm
Forum: Canada / United States Tax & Accounting
Topic: 3520-A Penalty
Replies: 23
Views: 10721

Re: 3520-A Penalty

Hello Caninus, One position you can take is that the instructions on the due date for filing a substitute 3520A attached to a 3520 are confusing. The trustee is responsible for filing 3520A by March 15 in order to relieve you of the obligation of completing a substitute 3520A and attaching it to the...
by MGeorge
Thu Jul 19, 2018 10:42 am
Forum: Canada / United States Tax & Accounting
Topic: Taking stab at 3520, -A for TFSA
Replies: 157
Views: 140105

Re: Taking stab at 3520, -A for TFSA

Hello, I've been wondering about this as well. I want to stop reporting my RESP and TFSA based on the arguments presented by Max Reed, but I don't know how to tell the IRS why I'm stopping. And, I'm worried that this could imply that I should have been reporting them elsewhere. Disregarded entity?, ...
by MGeorge
Thu Jul 19, 2018 10:30 am
Forum: Canada / United States Tax & Accounting
Topic: PFIC with loss, doesn't matter?
Replies: 1
Views: 806

Re: PFIC with loss, doesn't matter?

Yes - don't declare the loss on the 8621 - it won't go on your tax return from form 8621.
However, losses in a PFIC under any election can be reported on Schedule D on your 1040.
by MGeorge
Wed Apr 18, 2018 12:59 pm
Forum: Canada / United States Tax & Accounting
Topic: QEF Net Gains - Do I need Schedule D ?
Replies: 3
Views: 1220

I use TaxACT and found that it didn't automatically add the capital gain part to schedule D. I had to add my own entry on schedule D (long term) called "gain from form 8621"
by MGeorge
Thu Mar 29, 2018 7:49 am
Forum: Canada / United States Tax & Accounting
Topic: Software suggestions for 1040, form 2555 & possible 1116
Replies: 18
Views: 6314

My 2 cents. I think TaxACT is the best option for US citizens in Canada. It supports form 8621 (now up to 20 copies) and it allows efiling with a NRA spouse with no ITIN number. However, the recent price hike to $64 has made me reconsider. Next year, I'm going to manually fill the IRS forms from the...
by MGeorge
Thu Mar 29, 2018 7:43 am
Forum: Canada / United States Tax & Accounting
Topic: PFIC excess distribution triggered when vested?
Replies: 3
Views: 1016

Hi Lori, The withdrawal in 2016 would not have made the reinvested dividends to be deemed paid. From all prior years, it sounds like you reported the dividends correctly. The withdrawal in 2016 may have resulted in "gain treated as an excess distribution" Did you have a capital gain - in US dollar t...
by MGeorge
Thu Nov 30, 2017 12:15 pm
Forum: Canada / United States Tax & Accounting
Topic: Which type of Canadian investments would not be PFIC?
Replies: 4
Views: 2254

Hi speer, To my knowledge Canadian mutual funds, ETF are PFICs. REIT are very likely PFICs, but I've noticed that Vanguard Canada's REIT ETF "VRE" takes the position that the underlying REITs are not PFICs (VRE is thought). A holding company is likely not a PFIC, provided that the underlying passive...
by MGeorge
Wed May 31, 2017 11:00 am
Forum: Canada / United States Tax & Accounting
Topic: Preparation of 8621 for PFIC & Other QEF Questions
Replies: 12
Views: 3653

The income from a PFIC would be considered purely Canadian sourced for US tax purposes, and for Canadian purposes, the source of any dividends would be determined by the fund and reported on T3. None of the US taxes arising from QEF income could be creditable on the Canadian return. On the US return...
by MGeorge
Wed May 31, 2017 8:52 am
Forum: Canada / United States Tax & Accounting
Topic: Preparation of 8621 for PFIC & Other QEF Questions
Replies: 12
Views: 3653

Hi nelsona, That's a good question - in the cases that I've seen, the QEF income inclusion has been higher than the actual distributions from the fund - but it could go both ways. The QEFs I've had to deal with have been mostly index ETFs and mutual funds with very low fund turnover. I imagine activ...
by MGeorge
Wed May 24, 2017 8:06 am
Forum: Canada / United States Tax & Accounting
Topic: Preparation of 8621 for PFIC & Other QEF Questions
Replies: 12
Views: 3653

Hi ethanpurdy, Based on your example below, I think you are pretty close to having this correct. Check the RBC PFIC statements though, I think they use July 1 to June 30 as their reporting period. As you purchased the fund in late Jan, you would only have to report for the 148 days during the PFIC's...
by MGeorge
Tue May 23, 2017 1:51 pm
Forum: Canada / United States Tax & Accounting
Topic: Preparation of 8621 for PFIC & Other QEF Questions
Replies: 12
Views: 3653

Hi ethanpurdy, I just re-read your message. If you hold the fund for 10 years, you will not pay any US tax on unrealized gains with a QEF election. You might get phantom income with the QEF election because, there might be realize gains from the fund's own internal trading of securities, and these g...
by MGeorge
Tue May 23, 2017 1:41 pm
Forum: Canada / United States Tax & Accounting
Topic: Preparation of 8621 for PFIC & Other QEF Questions
Replies: 12
Views: 3653

Hi ethanpurdy, The QEF income from a Canadian ETF/mutual fund is all considered to be Canadian sourced, so you wouldn't claim, on your Canadian tax return, a foreign tax credit for taxes paid to the US. Even if you held "XUS", a Canadian domiciled ETF of US securities. The QEF "ordinary income" woul...
by MGeorge
Tue May 23, 2017 10:58 am
Forum: Canada / United States Tax & Accounting
Topic: Preparation of 8621 for PFIC & Other QEF Questions
Replies: 12
Views: 3653

Hi ethanpurdy, You're correct - the QEF election ensures that any realized long term capital gains resulting from trading assets within the fund (ie. by the fund manager) will be given the long term treatment by US tax principles. The dividends, interest, and any short term realized gains would come...
by MGeorge
Mon May 01, 2017 2:27 pm
Forum: Canada / United States Tax & Accounting
Topic: TFSA issues
Replies: 1
Views: 1020

Hi There, Here are my two cents: 1. I can't guarantee there would be no penalties, but there really shouldn't be. Just amend your FBAR and if asked, just tell the truth that you didn't know that you had to report zero balance accounts. It's your decision, an accountant told me that he as seen more t...