Serbinski Accounting Firms

Thanks for the clarification on the "Federal School Code" issue.

Withdrawals from a U.S. 529 plan are tax free only if the funds are withdrawn for qualified education purposes. This is defined as any expenditure for an institution which is eligible for U.S. federal education benefits. Therefore, a Canadian institution would not qualify, and you risk having the 52...

First of all, if you collapse the Roth now, you will pay a 10% tax penalty (assuming you are under age 59 1/2). Secondly, although there are provisions to transfer a U.S. IRA to your RRSP, penalties and/or taxes would still apply. In addition, you risk putting what is intended to be a tax free pensi...

If you are operating a business from Canada but you do a significant amount of business in the U.S., you should consider a structure something like this: 1. Use a Canadian corporation (CCPC) as your main operating entity. This corporation will directly record business originating in Canada. 2. Incor...

Although it really does not matter, it may be more practical for you to have a joint account.

In addition, you may find that interest income can be taxed in each of your returns, rather than only on yours. Depending on your, and your wifes incomes, this could make a difference.



Mark

Under the voluntary compliance rules, you will not be fined if you come forward and file the forms with all of the required information (assuming that you have not to date been asked by IRS to do so.)



Mark

When you enter Canada, your capital and investments are not taxed... nor are there any "departure" taxes in the U.S. However, when you establish residential ties to Canada, your capital properties (investments outside of retirement plans, real estate, etc.) are valued at fair market value ...

When you become a resident of Canada, and are employed (by your company or any other entity) to provide services in Canada, you will also be subject to Canadian payroll tax withholding. In this case, your U.S. company would apply for a Canadian business number and take care of the Canadian withholdi...

On a related topic, Canada does allow a deduction for moving expenses from outside of Canada, but only if you were considered a tax resident of Canada during your absence.

Your problem is not unique. Although the issue of Canadian RRSP investments held by U.S. residents has been substantially dealt with by allowing trading in Canadian RRSP brokerage accounts, the same has not been done for IRA accounts. The issue is an SEC rule which prohibits the use of a broker outs...

Nelson is right, but you must first build the house on the lot to have the interest deductible.

Interest on raw land is normally capitalized as part of the cost of the land.

Let's also not forget that Treaty Article XVIII(1) as further defined in Article 9(7) to the Third Protocol, defines a pension to include an RRSP, RRIF, or IRA.

A locked in RRSP remains locked according to the original agreement you made on establishing the plan, and cannot be cashed until released.

Just a point about the RRSP taxability. 1. In the example above, the entire $10,000 would be included in income in the U.S., and is subject to a foreign tax credit. 2. No foreign tax credit carryover is available for any income which is excluded from tax (if any such income were to exist). Regards, ...

Nelson: Read 72(w)(1) (quoted above) very carefully. It refers to current citizens or residents of the U.S., who, at the time the contribution was made may have been non resident aliens. This section is definitely on point, but you have elected to ignore it. The law is clear in that it identifies RR...