regarding tax return for Canada
Hello David,
I am Canadian citizen working in US on TN visa, my family is here with me on TD visa. We have been here for more then a year. We have a house in Ontario that we rent. We have never canceled Canadian driver's license, healthcards, credit cards and bank account however we have obtained US medical, driver's license, etc. We have been visiting Ontario once for a week to do some repaires around house. My wife was not working last year. We filed a 1040 Joint return for the US .
Question: What is the best way to file my Canadian tax? Should we do it jointly or separately? Are we still considered Canadian residents? Should we pay Provincial tax to Ontario or/and Federal Tax or neither one?
Also could you please let me know how much would you charge to prepare my Canadian tax?
Thank you in advance,
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david ingram replies:
You are a non-resident of Canada although you have kept too many Canadianisms
You need to file two returns. One for any earned income up to the date of departure and the second for the rental on the house after you left. This return is called a Section 216(4) return. Theoretically, the Canadian return has to be prepared BEFORE the US return and to file a Joint return in the US, you would also have to report any earnings from Canada in 2006 for before you moved to the US.
It is very unlikely that the US returns are correct.
The following is a usual price suggestion:
Phone consultations are $400 for 15 minutes to 50 minutes (professional hour). Please note that GST is added if product remains in Canada or a phone consultation is in Canada.
This is not intended to be definitive but in general I am quoting $800 to $2,400 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no rental
$1,200 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.
$1,500 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
$2,400 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 $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely $450
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 $800 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.
Just a guideline not etched in stone.
I am Canadian citizen working in US on TN visa, my family is here with me on TD visa. We have been here for more then a year. We have a house in Ontario that we rent. We have never canceled Canadian driver's license, healthcards, credit cards and bank account however we have obtained US medical, driver's license, etc. We have been visiting Ontario once for a week to do some repaires around house. My wife was not working last year. We filed a 1040 Joint return for the US .
Question: What is the best way to file my Canadian tax? Should we do it jointly or separately? Are we still considered Canadian residents? Should we pay Provincial tax to Ontario or/and Federal Tax or neither one?
Also could you please let me know how much would you charge to prepare my Canadian tax?
Thank you in advance,
---------------------------------------
david ingram replies:
You are a non-resident of Canada although you have kept too many Canadianisms
You need to file two returns. One for any earned income up to the date of departure and the second for the rental on the house after you left. This return is called a Section 216(4) return. Theoretically, the Canadian return has to be prepared BEFORE the US return and to file a Joint return in the US, you would also have to report any earnings from Canada in 2006 for before you moved to the US.
It is very unlikely that the US returns are correct.
The following is a usual price suggestion:
Phone consultations are $400 for 15 minutes to 50 minutes (professional hour). Please note that GST is added if product remains in Canada or a phone consultation is in Canada.
This is not intended to be definitive but in general I am quoting $800 to $2,400 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no rental
$1,200 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.
$1,500 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
$2,400 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 $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely $450
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 $800 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.
Just a guideline not etched in stone.
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