My_question_is: Canadian-specific

question: I invested a large sum of cash with one of Canada's five large banks. These GICs were taken on 1, 2,3, and 4 year terms. In the third year I MADE A LARGE PURCHASE AND WAS REQUIRED TO REDEEM THE GICs EARLY AT THE 2.5 YEAR POINT. The bank then claimed back all of the interest paid out for the third year which was approx. $7000. They had already issued T4 tax slips for this for interest paid out in that year and refused to issue a statement of interest retraction. I contacted revenue canada about this interest clarification and they said all I needed was a declaration on bank letterhead signed off by an officer of the bank that the $7000 was in fact redeemed to them. However they now SAY IT WAS NOT A RETRACTION OF INTEREST BUT IN FACT A PENALTY FOR EARLY CONTRACTUAL REDEMPTION. Revenue Canada says that as such I would still have to pay the tax on the interest as the bank sees the process as a penalty rather than a retraction of interest. So what it amounts to is I hav

e to pay tax on money I don't have and the bank gets to write this amount off against their capital losses on our term agreement. How can this be that I have to pay income tax on money the bank has and they don't? Help please, sincerely, XXXX XXXXXXXX.

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XXXX XXXXXXXXX wrote:

XXXX XXXXXXXX wrote:

Dear David,

Just came across your site and thought I would run something by you...

I am a Canadian citizen. I was in the U.S. from August 2003 until August 2009. I earned income all that time (H1B). I have filed a U.S. tax return for my income from January to end of August 2009. I returned to Canada (North Vancouver!) and now have a T4 for income earned from August to December. I began to prepare my own return, as it seemed easy and straight-forward. I came across something that seems to indicate that I have to report my 2009 U.S. income on my Canadian return. Is that correct? What looked like a $120 (or so) refund from Ottawa now looks like I might owe $2440 or so! Can this be? Please advise. How shall I proceed?

Thanks,
XXXX

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xxxx xxxxxxx  wrote:

Below is the result of your feedback form.  It was submitted by
xxxx xxxxxxx on Sunday, February 21, 2010 at 14:32:30
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My_question_is: Applicable-to-other-jurisdiction

question: Last year I opened a CAD and US savings account at TD in Vancouver. As a non resident, do I have to pay tax on the meager interest earned? also, I would like to invest about 15,000 that I have literally sitting under my mattress (don't want to risk opening an account in Havana)- what are my options and tax implications as a Canadian living in Cuba? I travel to Vancouver every summer to visit my parents. I have a teenage son (Canadian as well) who is contemplating studying at UBC when he finishes high school, and I want to set aside funds for him. What to do other than keeping the money under the mattress?? I have an excellent job in Cuba with a foreign company that pays in hard currency, which is the source of my earnings.  Help!

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XX wrote:

Below is the result of your feedback form.  It was submitted by
XX on Sunday, February 21, 2010 at 12:10:15
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My_question_is: Both

question: I work in the USA on a TN VISA ( California) , but also attended University full time in Canada in 2009. I have a home in Vancouver ( which i visit on weekends only)  but maintain a rental in the USA. Can I claim my tuition and education against my US taxes ( I have no Canadian income to declare this year).

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xxxxxx wrote:

Below is the result of your feedback form.  It was submitted by
xxxxxx on Sunday, February 21, 2010 at 11:50:01
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My_question_is: Both

question: Hi: 
 
I moved to Canada last May from USA. I was wondering if anyone can refer me a good tax consultant who can help with the tax filing. I guess it is little complicated since I had worked in US and Canada last year.
 
Thanks

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My_question_is: Both

question: Greetings Dave, 

I've been a customer for the past three years now (since I moved down to the US from Canada). I'm at the point where I'm looking into purchasing a home and was wondering what would it be more beneficial to buy a home in the US or back in Canada? I'm currently on an H1B (wife on H4) and currently waiting for my PD to be current. 

The question(s) are:

1. If buying a home in XXXXXXXXXXXXX, what tax benefits are there with this? For example, would I be able to get some of the proverbial Obama money (re: First Time Homeboy Credit - Form 5405), even though I'm on an H1B? Am I not considered a resident for tax purposes with the substantial presence test (I live all year in the United States)? Are there property taxes and mortgage interest tax credits?

2. if living in the United States, but I decide to purchase a home in Canada (for investment purposes), what are the benefits/cons of doing this? (Aside from upsetting my wife because I'd be buying a home in Canada for my parents while my wife and I live in an apartment). 

For example, would I be able to leverage interest paid on a Canadian mortgage as a tax credit in the US? Are there permanent residency issues with CRA if I do this? 

Looking forward to some high level guidance. Since I'll be doing my taxes with you again this year; if this requires a more detailed discussion then we can consult then. 

Thanks Dave and keep up the excellent work with the shows. 

Come out to next Thursday's  Canadian Mortgage Interest as a deduction seminar on February 11, 2010.  4 to 9 PM at the Langley events Centre at  78th  Avenue and 200th Street (just south of Walnut Grove off Highway one.) The Speakers are myself on how to make a Canadian Mortgage tax deductible, Ozzie Jurock on Real Estate Trends, Own Dolan on Canadian Estates, Martin Murenbeeld, economist and Fred Snyder on written Financial Plans.  Phone Fred's office at (604) 731-8900 to register free of charge.  Bring your financial advisor, bank manager or mortgage broker with you.  We are asking for a non-perishable donation to the Langley Food Bank for each attendee.


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XXXXXXX wrote:

Below is the result of your feedback form.  It was submitted by
XXXXXXXXX on Saturday, January 30, 2010 at 20:38:34
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My_question_is: Both

question: I am an American citizen who moved to Canada in 2003 when I married a Canadian citizen.  I received my Canadian citizenship in 2009.  I have not been employed since moving to Canada and only have unearned income.  I am thinking about buying a house in the US for my daughter to live in.  What are my tax implications if I own a home in the US but make my residence in Canada.

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Free Canadian Mortgage Interest as a deduction seminar on February 11, 2010.  5 PM at the Langley events Centre at  78th  Avenue and 200th Street (just south of Walnut Grove off Highway one.) The Speakers are myself on how to make a Canadian Mortgage tax deductible, Ozzie Jurock on Real Estate Trends, Own Dolan on Canadian Estates, Martin Murenbeeld, economist and Fred Snyder on written Financial Plans.  Phone Fred's office at (604) 731-8900 to register free of charge.  Bring you r financial advisor, bank manager or mortgage broker with you.

xxxxxxxx wrote: