overseas (India) investment -
Hello Mr. Ingram,
I am a resident of BC and I sent the below message to Ozzie Jurock as
I am a subscriber to his newsletters...
" If I decide to invest in a pre-construction condo in India and I sell it 3 years down the line on completion would I have to pay capital gains tax to Revenue Canada too if India deducts capital gains tax at their end and provides a certificate of tax deducted by them?
I understand that India and Canada have a
Double Taxation Treaty in place.
India would only
permit repatriation of sale proceeds back to Canada once capital
gains tax is paid at that end and a certificate of tax payment is issued to an
Indian bank to repatriate funds back to Canada."
Ozzie replied that he has no idea re investing in India and suggested I may refer this to you.
Ozzie replied that he has no idea re investing in India and suggested I may refer this to you.
In view of this I am approaching you for your guidance.
a) Would you be able to provide me some information on how this type
of investment could work from Revenue Canada's point of
view since India may charge
30% capital gains tax?
b) What Form Number would have to be submitted to Revenue
Canada when sale is made in India and profit is realized?
c) Would Revenue Canada take into consideration capital gains tax paid in
India or would
one have to again pay full capital gains tax at this end too? (Double
taxation agreement exists between both countries.)
d) How difficult would reporting be at this end from Revenue
Canada's point of
view?
Thanks and look forward to your reply.
Best regards,
-------------------------------------------------------
david ingram replies:
As a resident of BC, Canada or San Diego, USA or any other place in the USA or Canada, you are taxable on any profits you make in India. The bad news is that if you flip it immediately on completion of the build, Canada will consider you to be a flipper and want to charge you straight income tax. If you were to rent it out for three or four years, the CRA would be more inclined to teat it as a capital gain.
The good news is that Canada will allow a foreign tax credit for the tax paid to India. You can look at lines 431 and 433 of schedule 1 on your T1 to see how the calculation would work. If there is a spill over, you can use form T2036 and claim the excess on your BC428 form.
In the US, one would use form 1116 to claim a foreign tax credit for the tax paid to India
David Ingram wrote:
On January 29, 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
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 Mexican Income Tax service help.
$1,700 would be for two people with income from two countries
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 recieved as much as $6,000 back for an $1,800 bill and one recently with 6 children is resulting in over $12,000 refund.
David Ingram expert income tax service and immigration help and preparation of US Canada Mexico non-resident and cross border returns with rental dividend wages self-employed and royalty foreign tax credits family estate trust trusts income tax convention treaty advice on bankruptcy
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
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:
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
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 Mexican Income Tax service help.
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 personal or
business affairs such as at www.centa.com. If you forward this message, this
disclaimer must be included." e
bankruptcy expert US Canada Canadian American Mexican Income
Tax service and help.
David Ingram gives expert income tax
& 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 recieved 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, Brazil, Peru, Ecuador, Bolivia,
Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India,
Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas,
Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of
the 43 states with state tax returns, etc. Rockwall, Dallas, San
Antonio Houston, Denmark, Finland, Sweden Norway Bulgaria Croatia Income
Tax and Immigration Tips, Income Tax Immigration Wizard Antarctica
Rwanda Guru Consultant Specialist Section 216(4) 216(1) NR6
NR-6 NR 6 Non-Resident Real Estate tax specialist expert
preparer expatriate anti money laundering money seasoning
FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border
transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US Income
Tax Convention. Advice on bankruptcy e
bankruptcy expert US Canada Canadian American Mexican Income Tax
service and help .
David Ingram expert income tax service and immigration help and preparation of US Canada Mexico non-resident and cross border returns with rental dividend wages self-employed and royalty foreign tax credits family estate trust trusts income tax convention treaty advice on bankruptcy
New York, Boston, Sacramento, Minneapolis, Salem,
Wheeling, Philadelphia, Pittsburgh, Atlanta, Pensacola, Miami, St Petersburg,
Naples, Fort Myers, Cape Coral, Orlando, Atlanta, Arlington, Washington, Hudson,
Green Bay, Minot, Portland, Seattle, St John, St John's, Fredericton, Quebec,
Moncton, Truro, Atlanta, Charleston, San Francisco, Los Angeles, San Diego,
Sacramento, Taos, Grand Canyon, Reno, Las Vegas, Phoenix, Sun City, Tulsa,
Monteray, Carmel, Morgantown, Bemidji, Sandpointe, Pocatello, Bellingham,
Custer, Grand Forks, Lead, Rapid City, Mitchell, Kansas City, Lawrence, Houston,
Albany, Framingham, Cambridge, London, Paris, Prince George, Prince Rupert,
Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague, Lisbon, Madrid, Atlanta,
Myrtle Beach, Key West, Cape Coral, Fort Meyers, Berlin,
Hamburg, Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait, Molokai,
Beijing, Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina, Red Deer,
Olds, Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La Prairie,
Davidson, Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby, Surrey,
Edinburgh, Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney, Nanaimo,
Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich, Kyoto, Nanking,
Rio De Janeiro, Brasilia, Colombo, Buenos Aries, Squamish, Churchill, Lima,
Santiago, Abbotsford, Cologne, Yorkshire, Hope, Penticton, Kelowna, Vernon, Fort
MacLeod, Deer Lodge, Springfield, St Louis, Centralia, Bradford, Stratford on
Avon, Niagara Falls, Atlin, Fort Nelson, Fort St James, Red Deer, Drumheller,
Fortune, Red Bank, Marystown, Cape Spears, Truro, Charlottetown, Summerside,
Niagara Falls, income trust, Income Tax Treaty Convention. - e bankruptcy expert US Canada
Canadian American Mexican Income Tax service and
help.
david ingram International
non-resident cross border expert income tax & immigration help estate family
trust assistance expert preparation & immigration consultant, income
trusts experts on rentals mutual funds RRSP RESP IRA 401(K) & divorce
preparer preparers consultants Income Tax Convention Treaty.
advice on bankruptcy expert US Canada Canadian
American Mexican Income Tax help.
Be ALERT, the world needs more
"lerts".
bankruptcy expert US Canada Canadian American Mexican Income Tax
service help. -
expert us Canada Canadian Mexico income tax
service and help
help
What's Related