Search found 18241 matches

by nelsona
Tue Apr 10, 2007 8:05 am
Forum: Canada / United States Tax & Accounting
Topic: US/Canada Self Employed Cross Border Tax Situation
Replies: 6
Views: 4057

The 183 day rule does not enter into the picture, because, as you said at the outset: You moved to canada. You work IN canada. You are not merely visiting Canada for an extended period. So you became a Cdn resident on some date in 2006, and you report your world income to canada after that date. Bes...
by nelsona
Tue Apr 10, 2007 7:55 am
Forum: Canada / United States Tax & Accounting
Topic: basis of property for capital gain if change in use
Replies: 11
Views: 6405

Are we talking US tax or Cdn tax? In canada, the cost basis for cap gains will be based either on market value the day you left, or a formula of total growth divided by the years it was your residence. CCA will be added to that calculation. There is no change of use fro non-residents. In US, for cap...
by nelsona
Tue Apr 10, 2007 7:49 am
Forum: Canada / United States Tax & Accounting
Topic: Where to enter Canadian income on Form 1040?
Replies: 5
Views: 4459

Keats strategy of declaring RRSP income as "passive" for foreign tax purposes, relies on having NEVER used any treaty exemptions, thus paying yearly tax on int/div/capgains. This is fine. Trouble is, most now use the treaty, since it has become very easy with Form 8891. But once you use th...
by nelsona
Tue Apr 10, 2007 7:44 am
Forum: Canada / United States Tax & Accounting
Topic: 1040 effective tax rate
Replies: 16
Views: 11782

he whole point of filing by XXV(4) is that you and your spouse have lots of other income than your US wage.

If you don't, then you don't need XXV(4), and just file a 1040 like anyone else.
by nelsona
Mon Apr 09, 2007 10:51 pm
Forum: Canada / United States Tax & Accounting
Topic: 1040 effective tax rate
Replies: 16
Views: 11782

Your Cdn interest is not reportable on 1040NR, but should be on your 1040 proforma, along with your wfe's income.

This only works if you and your spouse have other income. If you don't thaen just file a 1040 and be done with it.


Are you even married? Were you jerking me around, or what?
by nelsona
Mon Apr 09, 2007 10:45 pm
Forum: Business & Personal Immigration to Canada
Topic: US Citizen married to CAN wants to emigrate
Replies: 6
Views: 10975

So...you're saying I have to QUALIFY to move to Canada? OF COURSE. Do you think that all Cdn citizens marry perfect little angels?! What if you were a convicted meth dealer, or a kiddie porn peddler. Do you think that Canad would just let you in because you managed to get your hooks on a Cdn citizen...
by nelsona
Mon Apr 09, 2007 10:15 pm
Forum: Canada / United States Tax & Accounting
Topic: US/Canada Self Employed Cross Border Tax Situation
Replies: 6
Views: 4057

Line 256 is for -- among many other things -- income that is not taxable in Canad by treaty. None of the income you have is not taxable in Canada by treaty. I'm sure you will find that many of the lines in the tax form don't apply to you, but they leave them there for others ;0). So, in Canada, one ...
by nelsona
Mon Apr 09, 2007 9:54 pm
Forum: Canada / United States Tax & Accounting
Topic: 1040 effective tax rate
Replies: 16
Views: 11782

You only change one line on your 1040NR: line 58. You do this by LINING out the normal ammount, and indicatingb the revised ammount below it. You don't change any of the other entries. As I explained in the other thread about this process (just because I told you not to jump on that thread doesn't m...
by nelsona
Mon Apr 09, 2007 7:16 pm
Forum: Canada / United States Tax & Accounting
Topic: US/Canada Self Employed Cross Border Tax Situation
Replies: 6
Views: 4057

Since you are sef-employed and living in Canada, the income is taxable in Canada As a resident, you are not entitled to exclude anything on 256: you owe taxes in Canada on world income from the date you moved. See the Newcomers guide from CRA; this is your primary guide for 2006. By a quirk in the t...
by nelsona
Mon Apr 09, 2007 7:11 pm
Forum: Canada / United States Tax & Accounting
Topic: Wrong/missing details in 1040NR filing,T1 filing joint anw?
Replies: 3
Views: 2457

As a 104NR filer, you do not report foreign earned income, so why would you want to file 2555: your foreign income is already excluded?
by nelsona
Mon Apr 09, 2007 7:10 pm
Forum: Canada / United States Tax & Accounting
Topic: Hiatus for last-minute tax-filers
Replies: 2
Views: 2308

Just to repeat
by nelsona
Mon Apr 09, 2007 7:01 pm
Forum: Canada / United States Tax & Accounting
Topic: Dual residence for married couple?
Replies: 6
Views: 3967

To clarify most -- if not all -- of what allen has said: Your husband should file a normal 1040, declaring ALL world income for 2006. He should also declare all your world income. The Cdn WAGES either of you made should be excluded by using form 2555, but it must be reported. This is a joint return....
by nelsona
Mon Apr 09, 2007 6:52 pm
Forum: Canada / United States Tax & Accounting
Topic: Where to enter Canadian income on Form 1040?
Replies: 5
Views: 4459

Your investment income idea (passive) not help in using up RRSP NR tax (gen limit) since it will not be coming from the same category of income (Keats is wrong on this one). And, only interest and dividends are considered foreign source in any event. You could consider rental income. The IRS is comp...
by nelsona
Mon Apr 09, 2007 4:36 pm
Forum: Canada / United States Tax & Accounting
Topic: Rev. Proc 2002-23, rsp dist. - Clarification and help
Replies: 4
Views: 3211

There is nothing in your 1040 for 2005 and 2005 to ammend. merely send in 8891s for those years attached to a 1040-X with no other changes. Indicate on those and any future 8891s that you fist made the election in 2004. PWC is obviously trying to 'pad' their account by sending in lots of paperwork. ...
by nelsona
Mon Apr 09, 2007 4:15 pm
Forum: Canada / United States Tax & Accounting
Topic: How to apply 1116 for vested stock option
Replies: 6
Views: 3613

1116 should only be attempted with tax software.