Search found 62 matches

by formerpatriot
Sat Mar 02, 2019 12:56 pm
Forum: Canada / United States Tax & Accounting
Topic: Calculating Net Worth on Form 8854 (Expatriation)
Replies: 2
Views: 1759

Re: Calculating Net Worth on Form 8854 (Expatriation)

My wife renounced her US citizenship in 2018. She filed her Form 8854 a few weeks ago. We are joint owners of our house here in Canada. On line 16 column (a) of the Balance Sheet (Schedule A of Part V), she put 50% of the (estimated) value of the house as renunciation day. In column (b) she put 50% ...
by formerpatriot
Fri Feb 22, 2019 5:29 pm
Forum: Canada / United States Tax & Accounting
Topic: Windfall Elimination Provision
Replies: 18
Views: 9674

Re: Windfall Elimination Provision

I can't remember where I got the x/2 limit. Maybe I'm wrong. Anyway, as nelsona mentioned, QPP will be small and therefore it is the x - (y/2) formula that will apply. According to Retraite Quebec, if she takes her QPP at age 60, the pension will be 500 CAD per month, thus the amount y will be about...
by formerpatriot
Wed Feb 20, 2019 8:30 pm
Forum: Canada / United States Tax & Accounting
Topic: Windfall Elimination Provision
Replies: 18
Views: 9674

Re: Windfall Elimination Provision

I have been reading about WEP. Here is an example: My wife has 40+ credits. If she had no QPP at all (and no other Quebec/Canada pension) her SS benefits would be, say, x USD per month at full retirement age. Let's say she does have QPP which amounts to y USD per month at the time she applies for SS...
by formerpatriot
Fri Feb 08, 2019 10:49 pm
Forum: Canada / United States Tax & Accounting
Topic: FBAR Question
Replies: 6
Views: 3125

Re: FBAR Question

To coco1106: I'm no expert. But I have some experience. I have filed my wife's FBAR for the years 2009 to 2018. Her status was dual citizen living in Canada. She filed FBAR because the total (combined) value of her Canadian accounts was above 10,000 USD. (She has now renounced her US citizenship and...
by formerpatriot
Fri Feb 01, 2019 3:40 pm
Forum: Canada / United States Tax & Accounting
Topic: Year of renunciation: 1040 only or combination 1040/1040NR
Replies: 8
Views: 3258

Re: Year of renunciation: 1040 only or combination 1040/1040NR

I agree with your last comment. It makes more sense than any other approach that I have considered or that I have read about. I will report salary and interest on 1040, reduce (in fact eliminate) salary on 1040 with 2555, bring forward adjusted gross income from 1040 to 1040NR, then (if possible, if...
by formerpatriot
Thu Jan 31, 2019 9:30 am
Forum: Canada / United States Tax & Accounting
Topic: Year of renunciation: 1040 only or combination 1040/1040NR
Replies: 8
Views: 3258

Re: Year of renunciation: 1040 only or combination 1040/1040NR

Thank you again. It was not your comment "use 1116 to eliminate the US tax on the foreign income you included on the 1040" that puzzled me. It was your previous comment: "Remember that on your 1040NR, you bring forward any income from the 1040 portion that you filled". Do you mea...
by formerpatriot
Wed Jan 30, 2019 9:48 pm
Forum: Canada / United States Tax & Accounting
Topic: Year of renunciation: 1040 only or combination 1040/1040NR
Replies: 8
Views: 3258

Re: Year of renunciation: 1040 only or combination 1040/1040NR

nelsona, thank you for your reply. I was going to do the following: - Report Canadian salary (up to renunciation day) on 1040 line 1 (in US dollars of course). - Report Canadian taxable interest (up to renunciation date) on 1040 line 2b (in US dollars of course). - Fill 2555-EZ to nullify the amount...
by formerpatriot
Wed Jan 30, 2019 7:57 pm
Forum: Canada / United States Tax & Accounting
Topic: Year of renunciation: 1040 only or combination 1040/1040NR
Replies: 8
Views: 3258

Year of renunciation: 1040 only or combination 1040/1040NR

My wife renounced her US citizenship in October 2018. We are trying to do her tax return for the year 2018. A multitude of web sites say that we must do the following: - 1040 for the part of the year from January 1 to Day Before Renunciation. Include world wide income (In our case the salary from he...
by formerpatriot
Sat Jan 12, 2019 5:53 pm
Forum: Canada / United States Tax & Accounting
Topic: Filing IRS Form 8854 after renunciation
Replies: 0
Views: 5890

Filing IRS Form 8854 after renunciation

My wife renounced her US citizenship in 2018. I am trying to fill Form 8854 "Initial and Annual Expatriation Statement". In her case, this will be an "Initial" as well as final expatriation statement. I am posting my questions below. Perhaps some people here can help. Since expat...
by formerpatriot
Thu Aug 16, 2018 10:42 pm
Forum: Canada / United States Tax & Accounting
Topic: Catching up on Tax Compliance
Replies: 8
Views: 4755

Re: Catching up on Tax Compliance

Mrs Patriot is married to Mr Patriot. Mr Patriot is a bit of a sicko. He found it amusing to file 19 years of tax returns and he still wonders what was the look on the face of the IRS person who opened the envelope containing a nice cover letter and 19 years of tax returns.
by formerpatriot
Thu Aug 16, 2018 5:04 pm
Forum: Canada / United States Tax & Accounting
Topic: Catching up on Tax Compliance
Replies: 8
Views: 4755

Re: Catching up on Tax Compliance

One more thing:
You will find a lot of useful information at
http://isaacbrocksociety.ca/renunciation/#comments
by formerpatriot
Thu Aug 16, 2018 2:19 pm
Forum: Canada / United States Tax & Accounting
Topic: Catching up on Tax Compliance
Replies: 8
Views: 4755

Re: Catching up on Tax Compliance

Hi cathaea. You have several options (including doing absolutely nothing). If you are certain that you will never want to move to the USA, then my advise to you would be the following: File 6 years of FBAR and 1040. Then renounce. Assuming that your situation is simple and that your wealth is modest...
by formerpatriot
Tue Aug 14, 2018 2:05 pm
Forum: Canada / United States Tax & Accounting
Topic: The annual cost of filing
Replies: 4
Views: 2145

Re: The annual cost of filing

Sorry, I was not clear.
Up until now, she has been compliant and she has filed by herself (which is possible because her situation is very simple (1040, 2555, 8938)).
But her situation will become complicated a few years down the road.
by formerpatriot
Tue Aug 14, 2018 1:56 pm
Forum: Canada / United States Tax & Accounting
Topic: The annual cost of filing
Replies: 4
Views: 2145

The annual cost of filing

Scenario: This person is a dual citizen (Canada and USA) living and working in Canada. This person owns TFSA, RRSP, RESP and non-registered brokerage account, all of them containing index mutual funds and ETFs. This person is fully IRS compliant. This person files 3520, 3520A, 8621, FBAR, etc. How m...
by formerpatriot
Sun Jul 29, 2018 5:17 pm
Forum: Canada / United States Tax & Accounting
Topic: Windfall Elimination Provision
Replies: 18
Views: 9674

Re: Windfall Elimination Provision

Interesting. I have 28 credits. With the totalization agreement,I should be eligible to some US SS benefit. I wonder which one is more advantageous. Getting 50% of whatever my wife will get or getting whatever I can get with my 28 credits and the totalization agreement? My 7 years of contributions t...