Serbinski Accounting Firms

Nelsona, I am sorry if I was not clear enough in my previous posts. Let me clarify. 1) For 1040 for current year, considering mandatory US 3.64 % depreciation, my net rental income from Canada rental property will be not only be zero but also negative. Therefore it is not an issue. 2) During 2010 du...

Nelsona- Thanks

My net rental income is less than $ 10,000 and my house cost plus land transfer tax is higher than $250,000 so yes, I am within 4 % of allowable CCA to make my 216 income to zero.

Nelsona, I am in favor of your advise of claiming CCA to make rental income zero on 216 return. If I claim $ 10,000 CCA, I will save $ 2,220 now. However in future, if I return to Canada to live in the house , I have to return the CCA claimed. That time on 100K income, will I be paying a much higher...

Nelsona. My sincere thanks for your prompt and useful advice which is helping me learn complicated topics on taxation. Based on your advise to use depriciation or CCA on 216 return, I have gone through T4036 and T776 which is useful. I think I may need your advice on one item I donot know how to fin...

Nelsona,
Thanks for the advise. I will consider depreciation to reduce my Canada tax to near zero.

Once I opt for depreciation in Canada, can I selectively choose depreciation only when required to bring down my net income to near zero?

Nelsona, Thanks. My clarifications. a) Yes. That is correct. I am paying 25 % of the Gross income rent to CRA within 45 days of receiving and at the end of the year , I file 216 return which T1159-10e.pdf form (I am happy to see 2010 form available so early now) b) Rent tax of 22.2 % I mentioned is ...

Nelsona, I apologize. Yes, I was mixing up. It will be simpler to explain with assumed numbers. All in USD. 1) Canada Gross rental income- $ 20,000 2) Canada net rental income excluding depreciation- $ 10,000 3) Depreciation- $ 5,000 4) RRSP at cost when became US resident- $ 40,000 5) RRSP when sol...

Nelsona,
Thanks.

I am sorry but I am not very good in finance so I have two questions on first sentence in your post.

1) How is Canadian net income calculated? Before or after depreciation on 1040?

2) Is effective tax rate same as marginal tax rate?

Thanks for prompt replies.

Nelsona,
Thanks.

What decides how much credit ? Is it gross Canadian income or net income?

This year on 1040 I will report and pay income tax on increase in RRSP value since I became US tax resident, is there any credit for flat rate 25 % tax which I paid to CRA when I broke RRSP for cash in 2010.

If yes, please advise.

With Quicken.com closing from today, those who are looking options for Free personal financial management software, I find Moneystrands- a better alternative than Mint.com for many reasons. 1) Unlike Mint which covers only few Canada banks, MoneyStrands can get data from most Canadian banks includin...

I am a little surprised by my assessed return showing less credit for first time homebuyer. My 1040 shows line 7 less than 150K. I have small amount of spousal income from Canada excluded shown on line 21. The subtraction of line 7 minus line 21 is shown on Line 22. Line 37 is same as line 22. So fa...

Like IRS allows, is it possible to claim travel expenses for US Canada travel on 216 return for visit to rental property during change of tenant?

If yes, are there any disadvantage of claiming this expense?

Hello Nelsona, We are correcting US taxes using 1040X. Would like to verify from you. 1) Spousal income in Canada for part year residence was excluded from 1040 using 2555. Therefore tax paid in Canada on this income also needs to be excluded from US tax credit. However, whatever tax she paid using ...

Nelsona- Thanks. I submitted two returns. One as depature teturn for the period while I was resident of Canada and one 216 for rental income for period for which I was non resident . My 216 is assessed but depature return is not yet. I have not even formally received 216 assessment but I printed fro...