401(K)/IRA Deductions in Candian Tax Return

[gandotra]

Clarification to your statement:

For Year 2004 : I reported Income from USA ( for period in between May 24- Dec 31 2004) on Form 1040 to IRS and in Canada I reported Employment Insurance Income (Received from Revenue Canada from Jan 01 to uptill May 22, 2004) + US Income ( in CD) on T1 General i.e. World Income for year 2004 was reported to CRA.

For Years 2005/6/7 : World Income was reported in USA first on Form 1040 and I have NEVER used Form 1040 NR as I new that 1040 NR was for Non Residents in USA where as I had always been a US Resident since May 24 , 2004.

The same World Income was then converted from USD to Canadian Dollars by usin CRA rates and reported on Form T1 General on line 104 as Foreign Employement Income based on W-2s. Ofcourse I took credits for US Federal, State, Social Security and Medicare taxes on T1 General filed with CRA before final taxes payable in Canada for each year.

So as per your analysis of this case under US - Canada tax treaty , article IV regarding "Centre of Vital Interests" and under Para 24 of Pub IT 221 R3 ( application of Subsection 250(5) of the Act) as per guidelines of CRA when I started reporting World Income in USA (ie tax year 2005 on wards); I actually had DNR status in Canada for tax years 2005/6/7 though I kept filing taxes to CRA due to Factual Resident status assigned for tax year 2004. I plan to take it up to Competent Authority/CRA, though I may have difficult time to claim DNR status for back years.

Now for 2008 what do you recommend, just stop filing T1 General to CRA or appeal for new determination on a fresh NR 73?

Thanks,

[nelsona]

You were DNR frm April 2004. The fact that you chose not to use this will be used against you.

You also said in a previous post: "Looks like I should apply NR73 for years 2005/6/7/8 and report my world income in USA and request for new determination on Residency Status for the subject years"

Now you say "For Years 2005/6/7 : World Income was reported in USA first on Form 1040".

I'm not pursuing this thread any farther.

All the best.

[gandotra]

I think you did not read my previos statement :

What I said was :

Quote
For years 2005/6/7/8 I never filed another NR73. So the trigerring factor ( for change in situation) could be that my World Income base shifted from Canada to USA ( in 2005) and I should be granted DNR wef Jan 01, 2005 for the tax years 2005 to 2008 under the US-Canada Tax Treaty. Please revert.

Unquote

I have been consistent in my statements as per the facts that my World Income has been reported in USA since 2005 on Form 1040. The same was then reported to CRA as per CRA's "Previous Determination of Status".

and I never said as interpretted by you :

quote :

"Looks like I should apply NR73 for years 2005/6/7/8 and report my world income in USA and request for new determination on Residency Status for the subject years"

Thanks,

[nelsona]

Huh? I am simply quoting you. Don't tell me you didn't write something that i directly took from your post.

Nothing happned on january 01, 2005 to change your situation. Residency determination NEVER take effect for an entire calendar year, otherwise there would be no need for arrival and departure dtae on the T1.

Obviously, an inability to coherently, and consistently describe your situation is not going to stand you well in any discussion with CRA.

Over and out.

[gandotra]

Please read entie post carefully before responding/commenting. Once you do that you will find that I have been consistent through out in explaining the situation.

The only comment I have for you is that you quotes were incorrect. Anyways your inputs were invaluable and are appreciated. Thanks for that.

[nelsona]

What are trying to prove her:

Here is a quote from YOU post:

[quote="gandotra"]- For the year 2004 for which NR73 was filed I had to report world Income in Canada as determined by IRS and CRA at that time and that was a true statement for the year 2004 ( ie. I did not report world income in USA) as for the first 4.7 months I was on Employment Insurance in Canada.

- So I guess my contention starts wef from Jan 01, 2005 as I have stated earlier my world income 100 % was based on W-2 statement and were taxed in the Treaty Country USA.


Looks like I should apply NR73 for years 2005/6/7/8 and report my world income in USA and request for new determination on Residency Status for the subject years

Thanks[/quote]
Repeat:
"Looks like I should apply NR73 for years 2005/6/7/8 and report my world income in USA and request for new determination on Residency Status for the subject years"

So, you've lost any hope of getting any help from me.

[gandotra]

Nelson;

That makes me laugh.. and I was wondering why you are getting agitated!!

Please note when I was talking about NR 73 I was talking in context with information provided to CRA in the year 2004 and that sentence I agree to some extent is misleading as what I wrote was about informing CRA on new Form NR73 that my world Income base had shifted from Canada to USA Since Jan 01, 2005 for the years 2005/6/7/8.

Actually today I have spoken to CRA after discussing this thread with YOU and they are looking in to Para 24 and 25 of Pub IT 221 and have told me that CRA would get back to me on DNR staus issue by a week's time. I would let you how it goes but your advice has been very helpful and I was totally ignorant of Para 24 of IT Pub 24 before I got on to this thread.

Hope that clarifies any confusion if that had caused due to different set of reference point you and I had an I could be sorry for that.

Thanks,

[gandotra]

Misspelt : Para 24 Pub IT 221 of CRA

[nelsona]

Well it doesn't make me laugh.