Serbinski Accounting Firms

Clarification:

The 50% exemption ONLY applies if someone has been resident in Canada and has been receiving US Social Security since before 1996. I didn't make that clear in my first post.

US citizen has been resident in Canada and has been receiving US Social Security continuously since 1996. I understand that only 50% of the SS is taxable now in Canada (as opposed to 85% as it has been for years). Does this "break" article XVIII of the treaty? Normally, this income would h...

An individual moved to Canada in 2009 and had a Roth IRA. In 2010, they inadvertently had an automatic contribution to a Roth IRA from one of their accounts (an automatic contribution was set up and they forgot to change it). I understand that for 2010 and on a going forward basis, his Roth IRA's ar...

[quote="nelsona"]You qualify under the bona fide residence test. The year can extend betwen calendar years. yours would have started in 2009 and ended in 2010.[/quote] I know the physical presence test can span a couple of years, but I understood that the bona fide residence test required ...

Nelsona is much more versed in US taxation than I, so he's probably the one to heed. That said, here are my responses to your points: SPT - Normally, someone who meets the substantial presence test would indeed file a 1040, reporting worldwide income for the whole year. However, in the first year of...

[quote]But also "yes" because I've met SPT and am filing full 1040, so I'm essentially a resident alien for all of 2010. [/quote] I'd take a second look at that. In a dual status year, I don't think you can make the first year choice to file as a full year resident unless you're married (y...

Can anyone could point me in the direction of information about the provision that allows a Canadian to file a 1040? I've read and re-read what I believe are the relevant articles in the treaty and can't seem to find it. I've also re-read publication 597 to no avail.

Thanks in advance!

I wasn't aware that Canadian are always allowed to file a 1040 by treaty. I was thinking a 1040NR (or perhaps that's what you meant). My understanding is that since this fellow has no effectively connected income, his AGI would be nil, thereby allowing a carry forward of the entire donation. He'd me...

I have a client that inadvertently made a large contribution to a US charity in 2009 (he belongs to a church in Canada that is headquartered in the United States and didn't want any local recognition for his contribution, so he sent the contribution to the US headquarters and received a US charitabl...

Can someone please clarify whether or not the notification is required to be filed BEFORE the actual disposition. I've read and re-read the reference provided above (http://www.cra-arc.gc.ca/tx/nnrsdnts/cmmn/dsp/menu-eng.html) and it still appears that notification (with payment) can be made 30 days...

Here's a scenario: - US citizen - Resident of Canada (for tax purposes) - In Canada on a work permit that prohibits work outside of a particular entity (ie. the work permit explicitly states that he's not allowed to work anywhere else or conduct other business activities) Question: Would this indivi...

With regard to the filing of form 8833, my understanding is that it's not required to be filed to take a treaty based position that exempts certain income such as SS, OAS, and CPP for residents of Canada. Citing from "Claiming tax treaty benefits" on the IRS website: ----------------------...

I have a client (US citizen / Canadian resident) that just started work with a firm last year that set up a DPSP for him. Is there any reporting requirement in the US for this (eg. 3520)? Is the growth taxable in the US each year it is earned, or only taxable when it's withdrawn?

I have read numerous articles and posts about people who have not filed 8891 forms on a timely basis. Quite often, it is suggested that the person back-file the 8891 (and equivalent documents pre-2003) and that the IRS generally accepts the filing. However, this is obviously done with a degree of ri...