Serbinski Accounting Firms

Hello Nelson: According to IRS Notice 2003-75: <font size="2"><i>".05. Distributions. A U.S. citizen or resident alien who has received any distributions during the taxable year from an RRSP or RRIF must report the total amount of distributions received during the taxable year from al...

From our former topic: quote: -------------------------------------------------------------------------------- Originally posted by Mark T. Serbinski, CA CPA Hi Nelson: Just to clarify what is taxable in the U.S. in respect of RRSP withdrawals... The entire RRSP withdrawal is defined by Article 9(7)...

LLC investments are problematic for Canadian residents, and especially for Canadian corporate members. In Canada, and LLC is treated as a foreign corporation, and the income will either be considered active, or could be foreign accrual property income (FAPI) under Canadian rules. (According to CRA I...

IRA, 401(k), and SEP IRA accounts are generally in the same category, and transfers can be made directly between accounts without tax consequence. Each of these retirement accounts permit for the same range of investments, including self administered investments. Regards, Mark T. Serbinski, CA, CPA

On a related topic, you should note that all capital property is deemed to be acquired at fair market value on the date of entry to Canada. Therefore, any unrealized capital gain or loss would not have a tax effect when the property is later sold (or when the person emmigrates from Canada). Regards,...

See this link for more information:

http://www.serbinski.com/Amincanada/Imm ... rusts.html

Regards,

Mark T. Serbinski, CA, CPA

Current SEC regulations require that you use a broker in your country of residence.



Regards,

Mark T. Serbinski, CA, CPA

Hi Paula: Well, your qualifying ISO's held over one year are taxed in the U.S. as long term capital gains. This is good, since the LT capital gains tax rate is 5% for income under $144,000 and 15% over that. Non qualifying options are taxed when the option is granted, so you would have already paid ...

Hi Dave: There are several issues here. First of all, it seems like your employer is concerned about becoming responsible for social security taxes, etc. if they fail to treat you like an employee. There may be some merit in this, since IRS has expressed this concern, and has audited cases like your...

Current SEC regulations prohibit trading an account in the U.S. if you do not live in the U.S. Prior to moving back to Canada, open an online account with a broker in Canada, and transfer the stocks in kind (without selling them). You need to be very careful here, since the U.S. does not have deemed...

I think the best thing to do is to file all of the prior year unfiled 1040NR returns, and then to file the current year return showing the carry over losses.

A return which is never filed is never statute barred, and can normally be filed.


Regards,

Mark T. Serbinski, CA, CPA

Hi Jen: I think what you have seen is a reference to withholding tax which is payable by a non resident alien on the disposition of real property. Under that case, tax is withheld to deal with a possible tax liability from the sale. This withholding tax may be reduced to a smaller amount, or nothing...

Hi Greg Sorry, I missed the Home Buyers Plan reference. Under this case, the withdrawal would not be considered a taxable withdrawal in the U.S. due to Article XVIII, since that article indicates that the tax treatment would be the same as in Canada. Further, this is recognized as a loan which you h...

Hi Nelson: Just to clarify what is taxable in the U.S. in respect of RRSP withdrawals... The entire RRSP withdrawal is defined by Article 9(7) of the Third Protocol to the Convention as a "pension", and is taxed in accordance with Article XVIII(1) of the Convention. Of course, a foreign ta...

Hi Greg: From what you write, it appears that your primary residence is in Canada, and that you commute daily to the U.S. for work. In addition, both of you are taxable in the U.S. on your world income because of permanent residence or citizenship, and you are also taxable in Canada on the basis of ...