Nelsona, forgive me if my question is stupid :-p . Let's say I have $1000 interest from T5 and I move to US in March.
I put 1000 x (10/12) x 90% in schedule B (box1)
and put 1000 x (10/12) x 10% + 1000 x (2/12) in stead of T5 when I file Canada tax. Correct?
what's the best way to file U.S. tax?
Moderator: Mark T Serbinski CA CPA
You put the interst your recieved on jan 1, Feb 1, and mar 1 (say $250) on your Cdn departure return. The rest of the interest you report in a letter to CRA with cheque for 10%. (say, $75 tax on $750)
In US you report the $1000 (in US dollars of course) on scedule B. You then repot the $1000 as passive income on 1116 and include the $75 you sent in the letter, plus the Cdn/prov tax you paid on the $250 dollars, that you calculate oin yopur Cdn return.
If your other income on that return was $10,000, then you can take $250/10000 fraction of the tax you calculate.
In US you report the $1000 (in US dollars of course) on scedule B. You then repot the $1000 as passive income on 1116 and include the $75 you sent in the letter, plus the Cdn/prov tax you paid on the $250 dollars, that you calculate oin yopur Cdn return.
If your other income on that return was $10,000, then you can take $250/10000 fraction of the tax you calculate.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best