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Hi-
My wife Mary is a Canadian citizen with a
temporary Green Card, and will be applying for her permanent Green Card
next month. (I am a US citizen and resident). In
the meantime she has to file US Income Tax for 2006 and, very soon,
2007. She is also trying to determine how to "Exit Canada" from a tax
standpoint. We know she has to move her
investments from a Canadian financial manager to one licensed in the US
and, if appropriate, move some or all of her investments form Canada to
the US. We are looking for someone who is
familiar with the related cross-border issues, and who can assist us in
handling them. Mary currently has all of her
personal and real assets in Oakville, Canada (outside Toronto).
Are you qualified and able to assist us in this
regard?
Thanks,
Don Smith
------------------------------------------------
david ingram replies:
Way back when I had an office in the Bronte Mall in Oakville so do know
the area.
Your wife does not need to move to a US broker if she does not want
to. Darrell Thompson of Blackmont Securities in Toronto is skilled at
cross border issues with stock accounts and Dan Walkow is equally
skilled at Seabank capital on the edge of White Rock, here in BC. They
are set up to handle the kind of cross border investment issues you
have. There is an advantage to leaving the account in Canada because of
a bond for departure tax.
Your wife has to sell a departing Canada return which means that her
stock Portfolio and any other assets such as a Collingwood summer cabin
or antiques or valuable paintings, a Steinway Piano, etc., have to be
valued the day she leaves the country and forms T1161, T1243, and
T1244 filed. If it turns out that she owes Canadian Departure Tax, if
she leaves the securities Account with a Canadian broker like Dan
Walkow or Darrell Thompson, she can have the broker post security for
the tax, which means that she does not have to pay the tax until she
actually SELLS (as opposed to 'is presumed or deemed to have sold') the
stock.
With regard to the tax returns, that is what we do and would be happy
to help you. A couple of these older questions will give you some
other info.
------------------------
QUESTION: 1. have been trying to find ethical investment firm to go
with in Canada and can not seem to get any unbiased answers We live in
Red Lake Ontario (landed immigrants), but are also US citizens
2. Is this Stansberry & Associates
(http://www.stansberryresearch.com
) legit, as they seem to have many
different opportunities claiming great returns
Pinchot Retirement Plan, Master Limited Partnership, Market Index
Target Term Security , Oakmark Select Funds
Thanks greatly looking forward to your email
---------------------------------------------------------------------------david
ingram replies:
I have no good or bad knowledge about Stansberry and Associates. None
of my clients deal with them to my knowledge.
(one person wrote back to say they are happy with the service from
Stansberry after I wrote the above)
>From looking at their website, they seem to be a newsletter
operation
as much as anything. I have about 15 interviews with newsletter
writers on gold (John Embry), oil, uranium (Martin Kafusa), silver
(Sean Rahkimov) real estate (Ozzie Jurock), futures and commodities
(Victor Adai), Resources in General (Elsworth Dickson, Publisher of
Resource World) etc at www.howestreet.com
- mostly in
the third column.
Two ethical people who specialize in selling securities, RRSPs, etc.,
to US citizens in Canada or Canadians in the US are:
Mr Darrell Thompson
Blackmont Securities
Toronto
Local (416) 874-8007
LD (866) 775-7704
www.blackmont.com
AND
Dan Walkow
Seabank Financial
White Rock
Local (604) 541-9952
L D (866) 541-9952
www.seabankcapital.com
__
These two individuals and their companies have gone to the effort to
get themselves registered just about everywhere so they can deal with a
Canadian in Florida or California or Nevada, etc.
____________________________________
Note that because of their specialty, they tend to deal with accounts
in excess of $200,000
However, I am sure that both parties would welcome an exploratory call.
------------
Dear Mr. Ingram:
I got your email address and website from browsing through the Internet
regarding tax inquires.
In less than two months, I will be moving from Canada to United States
to get married and reside with my husband. Eventually, we want to move
back to Canada, perhaps in 8 to 10 years so we want to ensure that we
have our paperworks in order before leaving Canada.
Here are my situation:
I own a condo that I am currently selling. I will sell any properties
and furnitures that I have. I will also cancel any health plan and
forward all my mail to my Unites States address. I do not own stocks or
mutual funds. Currently I am a self employed who pays installments on
my taxes and GST.
Questions:
1. I had called the International Tax Canada office who told me to fill
in NR73 (Determination of residency status) after I left Canada.
However there are several sites that indicate that it is not
recommended for me to fill this form unless requested to do so. I also
remember reading that you commented NOT to fill this form. Is there a
way for CRA to find out that I have never fill in form NR73 once I
leave Canada?
2. Departure Tax - I read that if one "has lived in Canada for more
than 5 years, the individual's capital assets are deemed sold at FMV on
which capital gains tax is payable". If I am not mistaken, there is an
exception to this rule regarding sale of property for personal use
(main habitat - not rental) therefore the gain that I get from selling
my condo should not be taxable for departure tax/exit return. Is there
anything else that could be taxable under departure tax?
3. Is there any forms that I am obligated to fill before leaving Canada
permanently and submit to CRA (without filling in form NR73)?
T-1161 (List of Properties by Emigrant Canada)
T-1243 (Deemed Disposition of a property by an Emigrant Canada)
4. My client/employer is having a hard time trying to find a substitute
for me. They're wondering if I might still be able to work for them
from United States for couple of months up to one more year. If I agree
to this, I am worried of the tax implications because this means that I
would still need to file T1 tax return every year. Moreover I plan to
close my Canadian bank account to sever ties with Canada. Could you
advise me on this matter?
Thank you very much for your help with this. Any insights would be
greatly appreciated. I live in Greater Vancouver area and am available
by phone (604-783-0959) if you think that it would be easier to discuss
this on the phone or by appointment at your convenience.
Regards,
-----------------------------------
david ingram replies:
Because you are moving to the US which is a Tax Treaty country, you do
not need to get rid of all your Canadianisms. Article IV of the Treaty
says very succinctly that you are taxable where your permanent home is
available to you.
Therefore, if you have a $300 a month rented apartment wherein you live
in Coos Bay Oregon and have rented your $5,000,000 Canadian house out
to strangers for a year or more and it is not available to you to move
into 'tonight', and you are in the US for more than 183 days in the
calender year AND you are living with your husband in the US, you are
only taxable in the US on your world income and are taxable in Canada
on Canadian source income.
If you are working 'in the USA' for a Canadian employer by
telecommuting, that is NOT Canadian Source income. Canadian Source
income would be interest or dividends, royalties, rents, etc.
1. If I were you and intended to return to Canada anytime, I would
keep the Canadian condo and rent it out. By keeping the condo, you are
ensuring that you will have a place to live in Canada at today's
price. For instance just 4 years ago, you only needed $268,000 US to
buy a $400,000 Canadian condo. Today, you need $400,000. There are a
lot of us that think that it will cost $500,000 US to buy a $400,000
Condo in another five years or less. You will have to file form 1159
and T776 every year to report the rent but you will have a good
investment in one of the strongest economies int he world and will not
have to pay a $10,000 real estate commission to sell it. (sorry
Realtors)..
2. If you sell the unit before or as you leave Canada, you will not
owe tax on the sale of the condo. If you have no stock, mutual funds,
summer cabin, publishing rights or share of a family farm or business,
it is not likely you have anything else that would be subject to
departure tax.
3. The T1161 would be filled in if you should decide to rent out the
condo. However, as described, you would not need to fill in the 1243
or the 1244.
4. If you take the job, bill your ex employer from the US. Go to a
stationary store and buy an invoice book and a rubber stamp for your
business name which could be as simple as first last name's Services.
No Corporation or other registered name is required. When you file
your 2008 return, you would not file a Canadian return for those fees
because they were NOT earned in Canada. You could just make up an
invoice on your computer but I assure you that having a little blue
invoice book has a nice touch to it and is quite acceptable and
easier. You can even set up an office in your home and write off some
expenses for your home office including your computer, desk, LD phone,
share of electricity, heat, rent and or mortgage interest and taxes..
-------------------------
These older questions should help
QUESTION:
I am currently living in Illinois. I am about to come off of maternity
leave from my Toronto company and I intend to continue to work for them
through the Internet. My US immigration has not gone through yet. Do
I need to wait until I have US status to work or can I start right away
since I'll be working only for my Canadian company?
--------------------------------------------------
david ingram replies:
You can telecommute. You will owe tax to the US NOT Canada.
You might want to send the returns here.
This older question should help as well
QUESTION:
Hi David,
I am a TN visa holder working in Seattle, and my wife is on a TD visa
and she is citizen of China. We are determined as non-resident to
Canada.
Can she telecommute from the US, and providing software consulting
service to Canadian company? Is she allowed to work remotely while
being a TD visa holder?
Does she need to file taxes to CRA?
Thank you very much.
--------------------------------------------------------------------------
david ingram replies:
She is not supposed to take a job away from a legal US resident.
Telecommuting to Canada does not take a US job away and should not be a
problem.
The Canadian Employer should not withhold any Canadian tax either.
She does NOT owe tax to Canada if she provides all her services from
the
USA.
She will / does owe tax to the US on the earnings and it should be
reported on a schedule C on your joint 1040 US tax return.
She will also owe FICA (Social security tax) and should. send in form
SE as well.
Hope this helps
------------------------
QUESTION:
Hello
I am a 26 year old Canadian who has been residing in FL since June 2006. I married an American the following month.
I have been unemployed since and am going to fill my Canadian taxes.
Is it possible for someone in FL to file out my taxes for me...or do i have to travel back to Canada to do so.
Thanks so much
I find your website very fascinating :)
-----------------------------------------------------
david ingram replies:
Unless you have a rental house, you should not have to file a
Canadian tax return. If you have bank accounts or other interest or
dividends from an investment account, the payers in Canada are supposed
to be deducting 10% tax on interest and 15% tax on dividends.
We can do your returns for you by mail or email, fax or courier.
You should likely be filing a joint US 1040 with your spouse.
You do have to do a departing Canada return for 2006.
This other question might help.
georgearora@centa.com: Please see bottom of message if you wish to unsubscribe.
------------------------------------------
QUESTION: Hi David,
I am Canadian citizen, worked in Canada for the first 5 months of 2006. then moved to US and worked then for the rest of 2006. I have income from Canada employer, Canadian bank and US employer. I filed tax return on my US income to IRS already. I haven't done Canadian tax return yet. I had thought I only need to file Canadian tax return on my canadian income. But it seems both CRA and IRS requested to report my world income to both. I am confused. What should I do to file the tax return to both?
More specially, I received NR4 slip from CIBC bank. I could not find where to enter this form when I used Ufile.ca.
How can I enter US W2 form into any Canadian tax form?
How can I enter T4 slip into US tax return form?
thanks a lot!
_______________________________________________________________
david ingram replies:
An NR4 does not go on the Canadian return. It goes on Schedules B and
1116 of the US return
The T4 does not go on the US return unless you are filing as a year
round resident as in 2 below.
I am too busy to come up with a new answer but this older one will give
you an idea.
QUESTION: Hi David,
I really need your help in filling U.S tax and I am getting mixed messages which forms to file.
I am a Canadian Citizen in U.S on TN visa for more than a year.
I have RRSP in canada over 10,000 put in fixed bond and saving account in a bank.
What do I need to file here and what forms do I need to fill.
Do I still have to file tax in Canada for canadian earning? Please help.
____________________________________________________
david ingram replies;
You need to file a departing Canada tax return and file T1161 if you
left more things than your RRSP behind. The Canadian return will only
include Canadian earnings although if you had a Home Buyers Plan, it is
all due and taxable on the departing Canada return unless you have paid
it back.
For the US, you have two choices:
1. File a 1040NR dual status statement and a Dual Status 1040 Income
Tax return with no standard deduction
or
2. File a full 1040 which includes your Canadian income and gives you
a full standard deduction and the right to file a joint return if
married. This is usually the best if you left Canada early in the year
as you did.
If you can't figure it out, file an extension form 4868 (find it at http://www.irs.gov/pub/irs-pdf/f4868.pdf
)
and then send the information to us at the address in blue below to
complete for you.
_____________________________
On Mar 14, 2008, David
Ingram wrote:
It is very unlikely that blind or unexpected email to me will be
answered. I receive anywhere from 100 to 700 unsolicited emails a day
and usually answer anywhere from 2 to 20 if they are not from existing
clients. Existing clients are advised to put their 'name and PAYING CUSTOMER' in the subject line
and get answered first. I also refuse to be a slave to email and do
not look at it every day and have never ever looked at it when I am out
of town. e bankruptcy expert US Canada Canadian American
Mexican Income Tax service and help
However, I regularly search for the words"PAYING
CUSTOMER" and always answer them first if they did not get spammed out.
For the last two weeks, I have just found out that my own email notes
to myself have been spammed out and as an example, as I wrote this on
Dec 25, 2007 since June 16th, my 'spammed out' box has
47,941 unread messages, my deleted box has 16645 I have actually looked
at and deleted and I have actually answered 1234 email questions for
clients and strangers without sending a bill. I have also put aside
847 messages that I am maybe going to try and answer because they look
interesting. -e bankruptcy expert US Canada Canadian American
Mexican Income Tax service and help
Therefore, if an email is not answered in 24 to
48 hours, it is likely lost in space.
You can try and resend it but if important AND YOU TRULY WANT OR NEED
AN ANSWER from 'me', you will have to phone to make an appointment.
Gillian Bryan generally accepts appointment requests for me between
10:30 AM and 4:00 PM Monday to Friday VANCOUVER (Seattle, Portland, Los
Angeles) time at (604) 980-0321. david ingram expert
US Canada Canadian American Mexican Income Tax service and help.
david ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604)
980-0325
Calls welcomed from 10 AM to 9 PM 7 days a week
Vancouver (LA) time - (please do not fax or
phone outside of those hours as this is a home office) expert US Canada Canadian American
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Disclaimer:
This question has been answered without detailed information or
consultation and is to be regarded only as general comment. Nothing
in this message is or should be construed as advice in any particular
circumstances. No contract exists between the reader and the author and
any and all non-contractual duties are expressly denied. All readers
should obtain formal advice from a competent and
appropriately qualified legal practitioner or tax specialist for expert
help, assistance, preparation, or consultation in connection with
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included." e bankruptcy expert US Canada Canadian American
Mexican Income Tax service and help.
David Ingram
gives expert income tax service & immigration help to non-resident
Americans & Canadians from New York to California to Mexico
family, estate, income trust trusts Cross border, dual citizen - out of
country investments are all handled with competence & authority.
Phone consultations
are $450 for 15 minutes to 50 minutes (professional hour). Please note
that GST is added if product remains in Canada or is to be returned to
Canada or a phone consultation is in Canada. ($472.50 with GST if in
Canada) expert US Canada Canadian American
Mexican
Income Tax service and help.
This is not intended to be definitive
but in general I am quoting $900 to $3,000 for a dual country tax
return.
$900 would be one T4 slip one W2 slip
one or two interest slips and you lived in one country only (but were
filing both countries) - no self employment or rentals or capital gains
- you did not move into or out of the country in this year.
$1,200 would be the same with one
rental
$1,300 would be the same with one
business no rental
$1,300 would be the minimum with a
move in or out of the country. These are complicated because of the
back and forth foreign tax credits. - The IRS says a foreign tax credit
takes 1 hour and 53 minutes.
$1,600 would be the minimum with a
rental or two in the country you do not live in or a rental and a
business and foreign tax credits no move in or out
$1,700 would be for two people with income from two countries
$3,000 would be all of the above and
you moved in and out of the country.
This is just a guideline for US /
Canadian returns
We will still prepare Canadian only
(lives in Canada, no US connection period) with two or three slips and
no capital gains, etc. for $200.00 up.
With a Rental for $400, two or three
rentals for $550 to $700 (i.e. $150 per rental) First year Rental -
plus $250.
A Business for $400 - Rental and
business likely $550 to $700
And an American only (lives in the US
with no Canadian income or filing period) with about the same things in
the same range with a little bit more if there is a state return.
Moving in or out of the country or
part year earnings in the US will ALWAYS be $900 and up.
TDF 90-22.1 forms are $50 for the
first and $25.00 each after that when part of a tax return.
8891 forms are generally $50.00 to
$100.00 each.
18 RRSPs would be $900.00 - (maybe
amalgamate a couple)
Capital gains *sales) are likely
$50.00 for the first and $20.00 each after that.
Catch - up returns for the US where we use the
Canadian return as a guide for seven years at a time will be from $150
to
$600.00 per year depending upon numbers of bank accounts, RRSP's,
existence of rental houses, self employment, etc. Note that these
returns tend to be informational rather than taxable. In fact, if
there are children involved, we usually get refunds of $1,000 per child
per year for 3 years. We have done several catch-ups where the client
has received as much as $6,000 back for an $1,800 bill and one recently
with 6 children is resulting in over $12,000 refund.
This is a
guideline not etched in stone. If you do
your own TDF-90 forms, it is to your advantage. However, if we put them
in the first year, the computer carries them forward beautifully.
This from "ask an income trusts tax service and
immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram deals on a daily basis with expatriate tax
returns with multi jurisdictional cross and trans border expatriate
problems for the United States, Canada, Mexico, Great Britain, United
Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan,
China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia,
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Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan,
Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St
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with state tax returns, etc. Rockwall, Dallas, San Antonio Houston,
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& immigration consultant, income trusts experts on rentals mutual
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