Hi and thanks in advance for any replies. I will do my best to provide the relevant data. Tried to read other posts and could not find my exact situation.
My 85 yo father passed away in 2014 and was a dual US/CDN citizen living in Canada for past many years. My brother and I are CDN citizens and residents with no US ties or citizenship.
Issue 1.
Dad had a US brokerage account in the states. As I read I think he will report any accumulated gains in this account in both his US and CDN tax returns at date of death. Correct? Who gets to tax first, The US, or Canada? If US, I assume foreign tax credit in Canada.
Issue 2.
Had a US IRA (non-annuitized) that he named my brother & I as beneficiaries. (Again, brother & I have no US status). Does dad need to report this on either his CDN or US final tax return? I think I read that my brother & I will have the tax issues on this one.
Will my brother and I be able to spread this IRA income to us over more than one year or do we need to take it all at this time?
Thanks again for any help.
Decesased US/Cdn taxpayer 2014
Moderator: Mark T Serbinski CA CPA
Not quite. For US purposes there is no deemed disposition on death. Instead there is estate tax.
The location of the brokerage does not determine source, his residnece does, so canad will tax on death, and that tax can be used to offset any estate tax in US.
You either inherit the IRA or recieve the proceeds after disposition. that will be stipulated in the will. How it is reported on Cdn return will depend on this.
The location of the brokerage does not determine source, his residnece does, so canad will tax on death, and that tax can be used to offset any estate tax in US.
You either inherit the IRA or recieve the proceeds after disposition. that will be stipulated in the will. How it is reported on Cdn return will depend on this.
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
The IRA may also have internal instruction from your father as to disposition, ie. Transfer on death (TOD) to xyz or to estate.
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
Sorry to hear about your father. We all get older every day...
Regarding your citizenship though - although you may have been born outside the USA (I'm assuming) and did not already renounce your US citizenship (again, I'm assuming) you very well may be a US citizen.
If your father spent more then just his early years living in the US citizenship is automatically passed on to the next generation - it's not something that you apply for, it just happens.
We have just found out recently that my daughter is considered a US citizen solely because of my dual citizenship. It was an ugly scene at the airport when the US Customs officer demanded to see her US Passport and was almost denied entry without it.
Regarding your citizenship though - although you may have been born outside the USA (I'm assuming) and did not already renounce your US citizenship (again, I'm assuming) you very well may be a US citizen.
If your father spent more then just his early years living in the US citizenship is automatically passed on to the next generation - it's not something that you apply for, it just happens.
We have just found out recently that my daughter is considered a US citizen solely because of my dual citizenship. It was an ugly scene at the airport when the US Customs officer demanded to see her US Passport and was almost denied entry without it.
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DonMurphyCanada
- Posts: 73
- Joined: Sat Mar 01, 2014 11:41 pm
I doubt bigrandy is classified as a US citizen.
My understanding is he did not live there for the required minimum time and he did not apply to become a US citiizen so he is not a US citizen.
See this post for more details http://forums.serbinski.com/viewtopic.p ... itizenship
My understanding is he did not live there for the required minimum time and he did not apply to become a US citiizen so he is not a US citizen.
See this post for more details http://forums.serbinski.com/viewtopic.p ... itizenship