Search found 309 matches

by MGeorge
Thu May 19, 2016 8:29 am
Forum: Canada / United States Tax & Accounting
Topic: IRS reaction time
Replies: 3
Views: 1509

Hello,

I went through this a several years ago.
The IRS doesn't send any kind of letter of acknowledgement. It's basically "no news is good news". I ended up calling them, and the lady on the phone confirmed that she had all of my returns in the system.

Cheers.
by MGeorge
Mon Apr 11, 2016 3:56 pm
Forum: Canada / United States Tax & Accounting
Topic: F8621
Replies: 3
Views: 1158

Hello, Whether or not to treat as a sale, it would likely be treated the same for US purposes as it is for Canadian purposes. Was the switch considered a disposition for Canadian tax? What I would do is, if the class of shares is the same, as you said, but with a different fee structure, then you ar...
by MGeorge
Fri Apr 08, 2016 4:32 pm
Forum: Canada / United States Tax & Accounting
Topic: Where Does RESP Withdraw by Student go on his US 1040?
Replies: 27
Views: 15965

Hi nelsona, That is very interesting article from Hodgen Law. I have to admit is occurred to me that it should be easy enough to create a beneficiary statement based on the facts of the foreign trust owned by a non-US person. I had a look at an RESP withdrawal form, and it seems to give the option t...
by MGeorge
Fri Apr 08, 2016 3:08 pm
Forum: Canada / United States Tax & Accounting
Topic: Where Does RESP Withdraw by Student go on his US 1040?
Replies: 27
Views: 15965

Hi JohnSt Yes part III as nelsona says. Unfortunately, in this case the US beneficiary would have to complete schedule A and C or B and C of part III, and this means there could be tax and throw-back interest on any accumulation distribution. This seems worse than if the RESP had a US citizen subscr...
by MGeorge
Fri Apr 08, 2016 10:12 am
Forum: Canada / United States Tax & Accounting
Topic: Where Does RESP Withdraw by Student go on his US 1040?
Replies: 27
Views: 15965

No problem - this is interesting one. I saw an article from Jamie Golumbek that says there have been a few submissions to the US government supporting the recognition of RESPs, RDSPs and TFSAs. I am hopeful, but expect it will be a while before there is any meaningful change. The rumblings you heard...
by MGeorge
Thu Apr 07, 2016 11:59 am
Forum: Canada / United States Tax & Accounting
Topic: Where Does RESP Withdraw by Student go on his US 1040?
Replies: 27
Views: 15965

Hello DrJFM, CdnAmerican, I found some good supporting information at: http://www2.deloitte.com/content/dam/Deloitte/us/Documents/Tax/us-tax-foreign-trusts-final-021315.pdf We know that an RESP is a foreign grantor trust. Since you the owner have been filing 3520A with the required beneficiary state...
by MGeorge
Wed Apr 06, 2016 8:19 pm
Forum: Canada / United States Tax & Accounting
Topic: Where Does RESP Withdraw by Student go on his US 1040?
Replies: 27
Views: 15965

Hi CdnAmerican, So, when the RESP makes a distribution to your child, this would get reported in 3520A on line 17c. 3520A would be an attachment to your 3520 and as you probably know, you only have to complete parts I and II of 3520. When your child (I'm assuming is a US citizen right?) receives the...
by MGeorge
Wed Apr 06, 2016 11:18 am
Forum: Canada / United States Tax & Accounting
Topic: Where Does RESP Withdraw by Student go on his US 1040?
Replies: 27
Views: 15965

Hi DrJFM, Your son doesn't have to report any income from the RESP on his US tax return. For Canadian tax purposes, your son has to report the portion of the RESP withdrawal that is considered "EAP", but this is for Canadian purposes only. This is the problem with US persons own RESPs. US Tax Purpos...
by MGeorge
Wed Mar 09, 2016 10:32 am
Forum: Canada / United States Tax & Accounting
Topic: Collapsing RRSP after leaving Canada
Replies: 13
Views: 2518

Hi - this is an important move. You need to consider this carefully. There is no need to collapse your RRSP if you are moving to the US. It is not necessary to do this in order to meet the "several all ties to Canada" requirement. Also, you will likely pay much more tax to Canada if you take it out ...
by MGeorge
Tue Mar 08, 2016 10:37 am
Forum: Canada / United States Tax & Accounting
Topic: No 1099-DIVs...
Replies: 2
Views: 798

Hi, This doesn't sound right. TD Waterhouse is a qualified intermediary, and should remain this way after NBCN bought them. If they are a qualified intermediary, I believe they must provide you and the IRS with 1099-DIVs. Also, it sounds like the info they sent you isn't correct for US reporting, so...
by MGeorge
Tue Mar 08, 2016 10:30 am
Forum: Canada / United States Tax & Accounting
Topic: amount of income tax paid in the USA = Foreign Tax Credit ?
Replies: 8
Views: 1786

Hello, You still have to report your income from work in the US on your Canadian return. The $14,065 you paid to the IRS should be credited back to you on your Canadian tax return using form 2209. You still have to report all your income from Canada and the US on your Canadian return since you are a...
by MGeorge
Mon Mar 07, 2016 1:34 pm
Forum: Canada / United States Tax & Accounting
Topic: Exempt from filing 8621?
Replies: 3
Views: 1050

The US won't differentiate between which portions of the distributions are capital gain, or dividends, or interest, etc. To them, the Canadian ETF is just viewed as a foreign corporation, paying a dividend. Treat the whole distribution. Whether you reinvested the distribution or not doesn't make a d...
by MGeorge
Mon Mar 07, 2016 9:55 am
Forum: Canada / United States Tax & Accounting
Topic: Gift of Real Property to NRA Spouse
Replies: 2
Views: 1057

Hi MaxPWR, I don't think you can move your financial interest in your home for US tax purposes. Canada is considered a "community property jurisdiction" and I believe the home ownership would default to 50-50. I know a CPA living in Canada who has taken his name off of the family home completely for...
by MGeorge
Mon Mar 07, 2016 9:44 am
Forum: Canada / United States Tax & Accounting
Topic: Exempt from filing 8621?
Replies: 3
Views: 1050

It is true provided that you did not receive an "excess distribution" in 2015. This is if, on a per-share basis, the dividend in 2015 was not more than 1.25 times the dividend of 2014 (in Canadian dollars). You only have to file form 8621 if you're above the exemption, have an excess distribution, o...
by MGeorge
Fri Mar 04, 2016 10:26 am
Forum: Canada / United States Tax & Accounting
Topic: Algorithm for doing a 3520-3520A in 2nd year and beyond
Replies: 28
Views: 18744

Thanks DrJFM, I echo your sentiments about the hassle of all this reporting. My wife is not a US citizen and should probably put our RESP only in her name, but as a dual citizen myself, born in Canada something bothers me in principle about not owning an RESP for my kids, so I'll probably endure thi...