Search found 313 matches

by MGeorge
Mon May 25, 2015 5:08 pm
Forum: Canada / United States Tax & Accounting
Topic: Filing a US return for first time
Replies: 3
Views: 2944

I would use TaxACT. It is available for free in some cases, but I would get the download deluxe version for $12.99. The reason I suggest the deluxe version is that you can pull across information from the previous year's return to save time. Also, the second year your sons file, it can be done onlin...
by MGeorge
Fri May 22, 2015 8:36 am
Forum: Canada / United States Tax & Accounting
Topic: Form 1116- gain and loss in different categorie
Replies: 3
Views: 3033

Hi Pauline, Yes - I think it would be best for you to file an 1116 for both passive and general category types. You are correct about line 16 - I believe this is called "loss re-capturing". On your passive form 1116, you would put $0 on line 1a. Then put your loss on line 5. A negative num...
by MGeorge
Thu May 21, 2015 2:51 pm
Forum: Canada / United States Tax & Accounting
Topic: Form 8854 for expatriation
Replies: 8
Views: 5315

I think the purpose of the "dual citizen at birth" exemption is to allow someone to be treated as not-covered expat even if his/her network worth exceeds 2M or the tax liability limit. In other words, someone who would ordinarily be a covered expat will be relieved of the exit tax if he/sh...
by MGeorge
Wed May 20, 2015 10:54 am
Forum: Canada / United States Tax & Accounting
Topic: RESP reporting
Replies: 4
Views: 3520

Hello,

If your daughter is a US citizen, she needs to file a 1040, not 1040NR. NR is short for "non-resident alien" (they should call the form 1040NRA)

I believe she has to file a 3520 to report being the beneficiary of a foreign trust - but I have limited experience with this part.
by MGeorge
Thu May 14, 2015 3:14 pm
Forum: Canada / United States Tax & Accounting
Topic: PFIC with a loss
Replies: 14
Views: 11526

Hi Pauline - it is my understanding that the cost basis and the holding period are not affect by your date of residency in the US. Thanks for the link to code section 1001.
by MGeorge
Mon May 11, 2015 4:47 pm
Forum: Canada / United States Tax & Accounting
Topic: PFIC with a loss
Replies: 14
Views: 11526

Hi Pauline, I think section 1211 is only talking about the gains and loss that corporations can claim on a corporate tax return. I don't believe this applies to individuals. What we know about a section 1291 PFIC, is that the loss that may occur from selling shares of a PFIC at a loss, are not treat...
by MGeorge
Mon May 04, 2015 1:22 pm
Forum: Canada / United States Tax & Accounting
Topic: PFIC questions
Replies: 4
Views: 4641

Hi Canadalady,

They should know not to send you 1099-divs for an RRSP. Another person on this site had a similar issue, and I think it required a phonecall to the financial institution to stop it.
by MGeorge
Fri May 01, 2015 10:06 am
Forum: Canada / United States Tax & Accounting
Topic: PFIC questions
Replies: 4
Views: 4641

Hi Canadalady, It is my understanding that AGF mutual funds would be considered PFICs for US tax purposes. The fact that they have sent you a 1099-div in the past is likely an error on their part. I have read elsewhere on this forum that fidelity investments used to issue 1099-divs, even though thes...
by MGeorge
Fri Apr 24, 2015 9:21 am
Forum: Canada / United States Tax & Accounting
Topic: PFIC with a loss
Replies: 14
Views: 11526

Hi Pauline, Me again. Good news, I think I have something. Read this link here: http://intltax.typepad.com/intltax_blog/pfics/ The text following the bold text states that losses from the sale of a section 1291 are recognized as any other disposition of a stock. Recognizing the loss is under code 10...
by MGeorge
Fri Apr 24, 2015 8:36 am
Forum: Canada / United States Tax & Accounting
Topic: PFIC with a loss
Replies: 14
Views: 11526

Hi Pauline, Ah details! Yes, I guess it is held in a trust. The good news though is that you only have to fill out parts I and V, which sounds like would be all $0 until line 15f where you put your loss, and that's it. Line 16a-f + the statement is really rough - and you don't have to complete any o...
by MGeorge
Thu Apr 23, 2015 3:31 pm
Forum: Canada / United States Tax & Accounting
Topic: PFIC with a loss
Replies: 14
Views: 11526

Hi Pauline, I can not find where I read that one can not claim a loss on a Sec. 1291 PFIC. Form 8621 seems to suggest that the loss just dies on line 15f of part 5, but I haven't found any reference that states that one could not just claim the loss on schedule D. I haven't come across this in my ow...
by MGeorge
Thu Apr 23, 2015 3:06 pm
Forum: Canada / United States Tax & Accounting
Topic: PFIC with a loss
Replies: 14
Views: 11526

Hi Pauline, Regarding your questions: 1. My mistake, if the disposition shows a loss, then that fact does not require you to file 8621. There may be other facts that could require 8621 - like if your holdings exceeded $25,000. 2. I don't understand this question. My understanding is that you can mak...
by MGeorge
Thu Apr 23, 2015 2:15 pm
Forum: Canada / United States Tax & Accounting
Topic: PFIC with a loss
Replies: 14
Views: 11526

Hi Pauline, Just to be clear the TFSA is the account type, and the mutual fund in the TFSA is a PFIC. The TFSA is considered a foreign trust in most cases (requiring form 3520 and 3520A). Now, on your PFIC question. If you sell a fund for a loss, and you have never made a M2M or QEF election, then t...
by MGeorge
Mon Apr 13, 2015 10:29 am
Forum: Canada / United States Tax & Accounting
Topic: Inputting salary info on TaxACT without a W-2 form
Replies: 2
Views: 2034

Hi, I use TaxACT delux edition as a download.
There is a second type of work income called "foreign employer income" for FEC. I didn't need to do a mock W2. Look for foreign employer income and put your details there. It should also ask you about the exclusion later if you do this.
by MGeorge
Mon Apr 13, 2015 10:26 am
Forum: Canada / United States Tax & Accounting
Topic: 3520a filing deadline
Replies: 9
Views: 7897

My view is that it is the 3520 that you are filing by the deadline of your 1040 - which is April 15, or June 15th if you are a non-residence citizen. Any business filing the 3520A must do so by March 15th. Your filing is only the 3520 - and you are required to fill in a 3520A form and attach it to y...