Search found 181 matches

by Carson
Thu Mar 08, 2007 9:41 am
Forum: Canada / United States Tax & Accounting
Topic: IRS house taxation in Canada
Replies: 5
Views: 3903

Re: IRS house taxation in Canada

[quote="JohnSt"]I am a dual US/Canadian citizen. I have lived in Canada for many years. I have three related questions that I haven't been able to find a clear answer to: 1. Can municipal property taxes be deducted on US returns (presumably as part of the foreign tax credit)? 2. If a US ci...
by Carson
Mon Mar 05, 2007 6:07 pm
Forum: Canada / United States Tax & Accounting
Topic: Cash gift to Canada.
Replies: 6
Views: 5529

2x $21k is fine as long as you document what you have done, i.e. these would be "split gifts". These need to be documented on Form 709, even though the gifts are less than the exclusion amount. Check out the instructions on page 1 of these instructions: http://www.irs.gov/pub/irs-pdf/i709....
by Carson
Fri Mar 02, 2007 3:09 pm
Forum: Canada / United States Tax & Accounting
Topic: See the Oscar nominated movie "RRSPs, RRIFs and Dying&q
Replies: 9
Views: 5793

Sorry, I only have professional sources, but Google is your friend. :-)

I believe it's 15% on the greater of 10% of the RRIF balance at the beginning of the year or twice the minimum withdrawal required based on age. Any withhdrawals above that are at 25%.

Something like that.
by Carson
Fri Mar 02, 2007 11:01 am
Forum: Canada / United States Tax & Accounting
Topic: Treatment of withdrawal of Non-Deductible IRA contributions
Replies: 2
Views: 2404

Treaty Art XVIII(1) deals exactly with this issue: it says whatever is non taxable in the country of origin will also be taxable in the other country. You'll be fine.
by Carson
Thu Mar 01, 2007 10:23 am
Forum: Canada / United States Tax & Accounting
Topic: See the Oscar nominated movie "RRSPs, RRIFs and Dying&q
Replies: 9
Views: 5793

It's 25% on the excess after twice the minimum annual withdrawal (it's actually a little more complicated than that). I quoted the maximum rate.
by Carson
Wed Feb 28, 2007 5:00 pm
Forum: Canada / United States Tax & Accounting
Topic: See the Oscar nominated movie "RRSPs, RRIFs and Dying&q
Replies: 9
Views: 5793

Nothing special (unlike US IRA plans) as the remaining RRIF balance will become taxable to the last to die. A 25% Canadian withholding tax will apply and may be used as a credit against US Federal estate tax (if any).

Therefore, regular US estate planning optimization will apply. See a pro.
by Carson
Wed Feb 28, 2007 4:55 pm
Forum: Canada / United States Tax & Accounting
Topic: RRSP contribution after departure date
Replies: 1
Views: 2023

Yes, you can, subject to the usual 60 days after Dec 31 rules, i.e. tomorrow is the deadline! Note, if you had a Home Buyer's plan balance, the repayment was required within 60 days of your departure. I doubt if a transfer would be easier. A cash deposit or transfer is always cleanest. No Canadian r...
by Carson
Tue Feb 27, 2007 3:19 pm
Forum: Canada / United States Tax & Accounting
Topic: dividents within RRSP , taxable in California or not?
Replies: 7
Views: 5692

CA made a poor choice of words when they used "savings account". What they are saying is (see Nelson's posting) that an RRSP is NOT treated like an IRA, i.e, where only the withdrawals are taxable. An RRSP is treated like any investment account for CA purposes, i.e. the earnings (interest ...
by Carson
Mon Feb 26, 2007 1:16 pm
Forum: Canada / United States Tax & Accounting
Topic: Capital Gains on Property
Replies: 4
Views: 3020

[quote="jazi"]Thanks for the reply. So am I to assume that I would have to then pay capital gains on a single real estate sale to both countries?[/quote] No, the country where the real estate is located gets to tax the gain first. Then the other country can also tax you, but must allow a f...
by Carson
Mon Feb 26, 2007 11:26 am
Forum: Canada / United States Tax & Accounting
Topic: Capital Gains on Property
Replies: 4
Views: 3020

Assuming you mean real property, the short answer is no on either side of the border.
by Carson
Mon Feb 26, 2007 11:23 am
Forum: Canada / United States Tax & Accounting
Topic: Ontario Health Premium as Foreign Tax credit in US Return
Replies: 6
Views: 5406

I don't see why not as it would IMHO meet the definition of a foreign income tax paid to a government. We all know that the "Health Premium Tax" moniker is a fiction as the money goes directly into general revenue of the Ontario government.
by Carson
Mon Feb 26, 2007 11:20 am
Forum: Canada / United States Tax & Accounting
Topic: No withhoding tax on part of my RRSP distribution?
Replies: 1
Views: 1879

This refers to the standard Part XIII rules and Treaty rules applicable to the Trust units being held by a non-resident directly, i.e. not through an RRSP/RRIF.

The RRSP/RRIF withholding rules supersede what you have posted.
by Carson
Fri Feb 23, 2007 3:55 pm
Forum: Canada / United States Tax & Accounting
Topic: Reporting Canadian Interest Income on US Tax Return?
Replies: 1
Views: 2035

Schedule B - same as for US interest; and Form 1116 for Foreign Tax Credit
by Carson
Fri Feb 16, 2007 10:11 am
Forum: Canada / United States Tax & Accounting
Topic: Missed filing NR4 with US Tax Return
Replies: 5
Views: 3824

[quote="nelsona"]You might want to apply Carson's threshhold at this point.[/quote] Ahem...that's a professional threshhold and not safe to be used by unqualified folks without direct supervision. :wink: I recommend folks doing their own returns apply the "can I sleep at night" t...
by Carson
Wed Feb 14, 2007 3:14 pm
Forum: Canada / United States Tax & Accounting
Topic: May I use T5 instead of NR4
Replies: 4
Views: 5406

[quote="nelsona"]Why would writing a letter not be worth $15? You have to mail your return in anyc ase. It will not open any questions, as this is the cortrect procedure to follow. Besides, to correctly claim foreign tax credits on his 1040, he can only claim the 10% he legally owes. Carso...