2009 Tax questions

[hmw]

We (me and my wife) moved to the US in March 2009. I am on a H1B visa and my wife is on a H4. We have no immediate plan to return to Canada. The bulk of my 2009 income is from the US source after the move. We do not own property in Canada and have bought a house in the US. I will leave my RRSP in Canada and I have changed my address with my Canadian RRSP broker. I am in the process of moving my stock profolio (non-RRSP) to TD-waterhouse in the US.

1. For my US return, do I need to declare my pre-move Canadian income? I think I can keep my Canadian income tax to a minimum because I will use up my RRSP room. I think it may be better if I can report my Canadian income to Canada and my US income to IRS. Is this ok?

2. What kind of paperwork do I need to do with IRS for my RRSP?

3. Deemed disposition of property: I think the only thing that can apply to me is my losing stock profolio. So I guess no tax will be paid on it. What happens to those past Canadian capital losses? Can they be transferred to the US?

4. I am no tax expert. Is it realistic to do my first year US taxes myself by using a tax preparation software like Turbo tax? Or is it so complicated that I really should hire an accountant to do it? I am note sure the average local tax preparer would know about the in and outs of the Canadian/US tax treaties.

5. My wife will need to get a Tax ID with IRs. From what I understand, we will have to send our return to somewhere in Texas. Does that mean that we will not able to file electronically for 2009?

Thanks for your help!

[nelsona]

1. Yes, if you file full year return. Your RRSP deduction is not deductible in US.
2. Form 8891.
3.You can only report it in Canada. Only once you sell will you be able to trigger a loss in US.
4. Your local preparer will get both wrong.

Follow the Emigrants guide for your Cdn return, and file a full year 1040 for US.

[nelsona]

5. Probably not.