Serbinski Accounting Firms

Canada exempts 100% of a principal residence's capital gain while the United States exempts up to $250,000/$500,000 of a principal residence's capital gain. If a Canadian tax resident sells a US principal residence, the capital gain would be sourced to and taxed by the United States. Since Canada do...

Thanks nelsona! Very helpful!

Thanks nelsona! So I would pay slightly higher Canadian taxes on the income portion to escape all tax on the gains portion, assuming I sell right after emigrating.

Thanks nelsona for the quick response!

Would Canada follow the same qualifying and disqualifying disposition rules as the US in determining how much is apportioned to income?

nelsona wrote: > There is a LONG term way to eliminate the tax: If you use your investments > as security on the deemed dispo tax, and then hold on to those investments > for 10 years, CRA has to forgive the tax by treaty. Just curious, which part of the treaty enables tax to be forgiven after 10 ye...

US ESPP grants are not taxed until sold, at which point the discount portion is taxed as income and the earnings portion is taxed as capital gains. If a California and US tax resident emigrates to Canada, how are the different portions taxed by the different jurisdictions? Assuming the ESPP shares a...

Assume one held an RRSP savings account (holding CAD cash) and closed it after becoming a US tax resident. The cost basis of the account would be the contributions plus interest converted to USD on the dates paid. If the funds are withdrawn when CAD is lower, there would be an ordinary loss in USD, ...

Thank you for the information! So just including or excluding the RRSP income is enough to "elect" or "unelect" tax deferral... Does that mean one can change the implicit "election" by amending the income on a previous year's return (assuming no explicit election on For...

I have tried researching this topic on this forum and elsewhere on the web without much result. For 2015, Form 8891 is no longer being required; tax deferral of undistributed RRSP income is now automatic without an explicit election. How would one "elect" to [b]not[/b] defer taxes on RRSP ...

P.S. You mentioned filing as 1040NR would remove the requirement to file Form 8938. With the elimination of Form 8891 this year, is the deferral of undistributed RRSP income now automatic, even without filing Form 8938 or 8891?

Thank you for letting me know about this treaty benefit! May you point me to where I can read more about it? You have convinced me filing as dual-status has no substantial advantages. :) The main advantage to filing as full-year resident and non-resident is the ability to claim exemptions, correct? ...

Thank you nelsona for the quick and helpful reply! I had read about tax treaty tie-breaker rules and was confused as to whether I can be non-resident of both countries for part of the year. I do not think I can file as full-year US resident because I meet neither the green card test nor the substant...

I moved from British Columbia, Canada to California, United States in September 2014. I expect to stay and work in the United States for the foreseeable future. From what I have read, I must file as part-year resident for the California state return. For the US federal return, I have the option to f...