Serbinski Accounting Firms

One last point: While the treaty does classify RRSP under pensions, this only means that IRS must put in place a way for Cdn/US taxpayers to defer taxation. That is the only stipulation in the treaty. The manner in which it decides to tax is only LIMITED to include the income that the 'source' state...

Agreed. If it were that simple in IRS eyes however, Rev Proc 2002-23 would have simply been one line: "A Cdn RRSP is considered a pension, with all gross distributions being reported on both line 16(a) and 16(b)." That is how the Company Pension I will recieve from my former Cdn employer w...

Mark's inclusion of 72(w) is indeed interesting, as it refrs to a new section of the code. However, as it has been explained to me, this applies to company pensions (what Cdns call RPPs), NOT RRSPs, (note the references to 'service' from 'without the US'). An RRSP has never been recognized as a fore...

Of course. If it is your 'home' (you are allowed 2) then the interest is deductible as Home Mortgage (schedule a). If it is an investment property, the interest is deductible as an expense against the rent. There is nothing in The tax code that requires the home/property to be in US to take advantag...

... and just one more point. If all RRSP/RRIF withdrawals were to reported, why does Rev Proc 2002-23 (currently in force) ask one to determine, when transferring an account, exactly w=how much income had previously been deferred? It is so that when fianlly making a withdrawal from this new account,...

the portion referring to 'non-resident' aliens of course does not apply here, for 2 reasons: First Cdns living in US are not non-resident aliens. Second the non-discrimination clause of the treaty forbids Cdns to be treated more severely than Americans in taxation. Since by the sections you quote, a...

Depends what the T5 income is.<p>If it is capital gains it isn't taxed in Canada by treaty, so an NR slip would be pointless.

<i>nelsona non grata</i>

The gains/income that occured in your RRSP between your arrival in US and your divorce, is YOUR income, not hers. Thus you have to account for it, not her. Besides, by you taking it, you get to exclude it. Your ex living in Canada doesn't even have to bother with US tax reporting at all. The treaty ...

You do have to make a notation for that year, and in fact, you have to file an 8833 for that year, otherwise you are liable for tax on what IRS would consider a withdrawal. The tax treaty only allows IRS to include RRSP income on your 1040 to the extent that it was included as income in Canada. Sinc...

Any income generated by the property -- rent and eventual gains when selling -- will be taxed in Canada and US. with US granting a tax credit for Cdn taxes paid. One thing that you do have to watch for is buying property for your own use (ie. a cottage). CRA may view this as a sufficient residential...

Remember that there is a VAST difference in US and Cdn views of deductible moving expenses. There is also a difference for transferees. When you move to US, your firm will cover MANY expenses (it has to be an accountable plan) and all but a very strict ammount is taxable. Otherwise it is ALL taxable...

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by Mark T. Serbinski, CA CPA</i> Hi Nelson: Just to clarify what is taxable in the U.S. in respec...

Rev Proc 2002-23 allowed for a return to ~1996 in order to fixe your returns, and this is waht I would do. You attach a statement in compliance with the Rev. Proc for 1996 and a photocopy thereafter for each current account. There is a special procedure outlined for years after a transfer. I prepare...

You keep saying that it is the relo company that is paying for this and that but, in fact, it will be be either your old or new firm. As such these will be taxable in US in either year; They would only be taxable in Canada if the total reimbursement was more than C$15,000 (half of the excess would b...

You should have filed a 2001 Cdn return in spring of 2002, a year after leaveing Canada, as a departing Cdn. You likely owe tax for any UI you received, and if you had any investments at that time. You get little personal exemption for partial years. The advice you got about 183 days was completely ...