Hello David,
I understand you are very busy. I will appreciate it very much if you can reply my email. I need know If I need to file TDF90-22.1 by the end of this month.
Regards
Hello David,
I am xxxxxxx xxxxxx, one of your customers. I started working in the USA in September 2007. Thanks for filling my 2007 year Canada tax return. Also thank you for your estimate of my USA tax in 2007. For your interest and reference, would you like a copy of my 2007 year USA tax file that was done by my company¢s designated tax company?
I can email you my tax filing with password protected if you want. Please let me know.
My US accountant said that since I am filed as a Non-resident in 2007, I do not need to report my foreign accounts (Canada accounts) for year 2007, and then not need to file TDF90-22.1 by the June 30, 2008. Is this correct? I do not want to get a big fine.
I have a few questions about Canadians buying 401K and saving money in USA, I will appreciate it very much if you can help me.
My annual income is about 126,000. No any tax deductible benefits as I have not bought a house in xxxxxxx and want to move back to Canada or move to Seattle for work next year. Even though I move to work at Seattle, I am still going to retire back to Canada after 7-10 years
I have questions about Canadians buying 401K and saving money in USA:
1) I can buy 401K up to 20,500 in 2008, this is the only tax-deductible benefit I have. Should I fill my limit this year? I do not need to touch this money until I retire. However, If I get back to Canada, how about this money? Can I still leave it in USA until I retire and take it out monthly? Will it cause any troubles or money loss?
2) I have bought some stocks and mutual founds in the USA and have a savings account. If I come back to Canada, does withdrawal of this money to Canada have any problems or loss money? Can I still keep these investments in USA and continue to trade stocks or mutual founds?
3) Do you have any suggestions about how to manage my finances to avoid money loss when I back to Canada? Keep the money in USA or transfer money to Canada under my husband¢s name now?
4) Since I am a factual resident in Canada, I am supposed to fill the Canada tax return every year. I should report my USA earnings and then deduct this earning under the Treaty. What kind of tax form I should fill for 2008? I will be in Canada 4 week in 2008. Does it will affect my factual resident status?
I know these questions are boring. Hope you will not mind after a summer weekend.
Thank you very much and look forward to your response!
Best wishes for you and your family
xxxxxxxxxDavid, here has been a 'slight' change in how CRA treats so-called "Factual Residents" who meet the treaty definition of resident of another state. There are now considered "Deemed non-residents" and as such can no longer use the 256 method of excluding income. CRA sees thru this as an avoidance of deemed disposition rules. They MUST now follow the rules for "deemed non-residents" which requires them to file a departure date and meet all other requirements of a departure return. >From T4056, the emigrants guide: "If you left Canada in 2007 and keep residential ties in Canada, you are usually considered a factual resident. However, if you are also considered to be a resident of another country for the purposes of a tax treaty, you may be considered a deemed non-resident. The ordinary effects of ceasing to be a resident of Canada will apply as if you were an emigrant." This was changed about 3 years ago, and does away with the 256 maneuver. As you are aware, saying you are a factual resident avoids deemed disposition and that is the VERY REASON that the deemed non-resident status was developed. 256 is now only used to exclude certain income that is specifically covered by a treaty, no longer all income from a country of which you are considered a resident by treaty. AGNYou can find this guide at:
As a factual resident, we tax your income as if you never left Canada. You will continue to:
This applies for the year you leave and for each year you are a factual resident while living outside Canada.
You will see there is some controversy and you should be careful. The fact that a NEW TREATY was signed in Sept 2007 only adds to the confusion. For instance, If you are a taxable resident of Canada, I have been telling people for years NOT to participate in a 401K. the new treaty seems to say that this is okay and Canada will honour the deduction of the 401K for your Canadian return.Comments (0)
CEN-TA Cross Border Services - Tax, Visas, Immigration
http://www.centa.com/article.php/CanWeekofMon20080616000799.html