Serbinski Accounting Firms

All thesse questions about transition year taxes have been delat with previously on many threads on this borad as welll as grasmick.com tax board (now dead, but lots of useful info). Your main source of info is the "Emigrants Guide" from CRA for your Cdn exit return, and IRS Pub. 519 for y...

... just to correct. I said earlier it should not be on your Cdn return. Obviously it isn't 9in the sense that it has a corresponding RRSP contribution. What I meant to say is thatit should not appear on your US return , as it is pension income that was not taxed in canada, it cannot be taxed in US.

See, return of contributions is not severance, it is pension. That is why it was permitted to go directly into your RRSP. In my opinion this portion should not be taxable in US (right now), but only when you withdraw it. I would NOT include this on your Cdn return. This is covered by a treaty clause...

Scott, you still didn't clarify what type of income this severance was.

You need to add severance to your income for 2005.

First off you CANNOT use the like-kind exchange rules between a US property and a Canadian one (or any other foreign country). You could do a like-kind excdange within Canada (but there would be no reason to do this , because canada does not recognize this, so tax would be owing). So the sale of the...

Not really. Your US citizenship is the tipping point. Only getting Cdn citizenship (or spending more and more time in Canada) would tip you into Cdn taxation of world income.

No. That should be it. You don't even have to include it on a Cdn tax return.

Remember to include this on your US income tax return, and use the 15% as a foreign tax credit.

Since you are a US citizen working in US, it would come down to how much time you spend in canada, and how regularly you visit there. If you do not spend more than 183 days a year in Canada, you are a deemed non-resident, and thus do not have to report non-Cdn income to Canada. Unless your personall...

WRONG ! Generally, the tax rate for non-residents (using 1040NR) is HIGHER than using 1040, so HRBlockead is wrong, as usual. Just because you file a non-resident return does not mean that you won't pay US tax on your US wages! Even if you truly were a non-resident, your fist tax obligation on ALL ...

Maybe you are using 'severance' in the wrong way. I ask this because you said you received EI sarting immediately after stopping work, and you got severance. Usually, one can't get EI until their severance is 'used up' (ie. EI divvies up your severance over so many weeks, then starts EI after that)....

Remember to inclusde all your severance as INCOME on your 1040. The fact that you put it in an RRSP does NOT reduce your US tax obligation.

Sorry

actually, this is the active one

You should file jointly full-year, using 2555 to exclude both your Cdn wages.

For canda, becuase there is a significant time between your departure and heres, your US income until june is repotable in canada.

The 3520 trust reporting is a pain. However the tax issue should be a problem. The income is reportable, and the 15% witheld can be used either asa credit or itemized deduction (depending on which yeilds a lower US tax rate). I would just make it all taxable, his other deductions and credits should ...

There is an 8891 thread for those questiuons...

Yes, your EI is reported on 1040, on the same line as any US UI would be reported, see the 1040 guide on where to report UI.

The EI is considered foreign income, anmd the tax withheld is eligible for tax credit or deduction.