Serbinski Accounting Firms

You are right. I think the best plan is to keep the I-bond and pay the taxes that accrue in Canada until the record inflation rate subside, since there are no other "safe" investments that provide a similar yield in Canada. I-bonds less than 5 years old have a penalty of the last 3 months ...

Thank you nelsona for the wealth of information! The taxability of Roth 401(k) distributions was especially helpful. Since my Roth IRA was opened more than 5 years ago, rolling over the Roth 401(k) balance into the Roth IRA would immediately eliminate both US and Canadian taxes if only the contribut...

What are the pros and cons of keeping a traditional 401(k) account as-is compared to rolling it over to a traditional IRA before leaving the US? Both my employer (multinational company) and custodian (Fidelity) confirmed the 401(k) account can stay open with full trading privileges after terminating...

Ah, thank you for the details on the Treasury 1099-INT. Should the 1099-INT be ignored on the 1040-NR tax return, or included with a corresponding negative adjustment in Other Income (Schedule 1 Line 8z) to make the IRS 1099-matching systems happy? Not sure if your last question was directed at me. ...

Thanks nelsona for the clarification.

Is W-8BEN still the right form to file with Treasury Direct to avoid receiving 1099-INT and raising red flags with the IRS not reporting the interest in the departure year?

Hello elgoog!

Just curious if you have posted the security with the CRA. How was your experience with the CRA Migrations department?

nelsona wrote: > Canada requires yearly income reporting whether you receive the interest or > let it accrue. Since Canada taxes interest as they accrue while the US (generally) taxes I-bond interest only when redeemed, if the I-bond holder moves from the US to Canada, no interest would be taxable o...

How about the CRA? Could Canada treat Roth IRAs and 401(k) accounts like TFSAs and tax day trading as business income? Or would the treaty defining them as pensions protect any gains from being treated business income?

The CRA may not look kindly on day trading in a TFSA and may treat the trading activity as business.

Would the same apply to IRAs or 401(k) accounts that have no Canadian contributions? Does the tax treaty protect US retirement accounts from being considered business income?

Thanks elgoog for the follow-up!

Looking forward to your updates. Good luck!

Thank you elgoog for all the details! This information does not seem to be publicly available so I really appreciate you sharing it. Do you remember the phone number of this CRA department? Sounds like it took you a lot of effort to find it. Are you referring to the deemed security for up to $100,00...

Thanks elgoog for sharing the details! Did you talk to somebody in CRA Collections? I wonder what the point of cash security for a 220(4.5) election is? The deferred tax is payable once the property is sold or the resident returns, so the cash security just becomes tax paid I assume. What is the ben...

Sorry for being unclear. You are right.

What I wanted to emphasize was paying the taxes before they are due, since deferred departure taxes are due when the property is disposed, perhaps at a time no longer subject to US taxation.

Thanks nelsona! So any foreign income taxes paid (except when excluded by FEIE), whether or not that income is taxable by the US, can be used as an itemized deduction? Seems like this is a good way to get a "discount" when prepaying Canadian deferred departure taxes, or any other deferred ...

Supposed one emigrated from Canada to the US in a prior year and deferred payment of the departure taxes. The US does not tax the deemed acquisition (assuming no treaty election) so a foreign tax credit would not be useful. How about a foreign tax deduction? If the taxpayer uses the cash method of a...