Montana US citizen wants to buy Spousal

This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
David,
Hello!  I'm a US Citizen(Montana) on temp resident permit who worked in Alberta for the whole year.  I want to contribute to an RRSP and I assume I have about $6000 eligibility to do so this year because I made about $40K.( I have not received any documentation regarding RRSP contribution)  
In addition, I have a Canadian born Citizen wife who has eligibility to contribute $55k to an RRSP based on ten past years of income.  
We have the available cash to invest and would like to do a spousal RRSP for me using her deduction and contribute to hers as well.  Any recommendations on a strategy to carry forward tax deductions to future years?  Her income for this year is minimal due to being on maternity leave and we predict future years having more income for each individual.  Would like to split evenly in two accounts for each other this year...  
In addition, are there any implications reporting on my US tax return if I contribute to an RRSP in Canada.  Also, are there any problems with me contributing to a US Roth IRA even though I did not make any US income?  I'm assuming because I made Canadian money which is considered worldwide income I'm eligible to do a Roth ?
Sorry for the long winded note, but appreciate the help. 
Regards,
BXXXXXXXXX
=====================================================================
david ingram replies:
You can NOT contribute to a Canadian RRSP in your first year.  Your RRSP room for "this" year is based upon "last" year's Earned income reported to Canada.  
You  can NOT use your wife's deduction room on your return.  
You Can contribute to a ROTH but don't - it would be silly.
You can give your wife money for her RRSP but only she can use it as a deduction so make sure she has enough taxable income to make it worthwhile. It does not sound like she has enough.
You have extra reporting duties if you buy a Canadian RRSP.  You are always (in my opinion) better off paying down a Canadian non-deductible mortgage first.
Read the November 2001 Newsletter at www.centa.com for details on making a Canadian Mortgage deductible.
Read the August 2003 Newsletters (2 parts) for details about your reporting requirements if you buy a Canadian RRSP.
You also, of course, have to file a 1040 and likely a 2555 and 1116 and maybe a 2350 (to extend your return deadline long enough to qualify for the earned income exemption).  You can find all these forms at www.irs.gov
Answers to this and other similar  questions can be obtained free on Air every Sunday morning.
Starting this Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier Partners and I will be hosting an INFOMERCIAL but LIVE talk show called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the internet at
www.600AM.com 
David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321 
[email protected]
www.centa.com www.david-ingram.com
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 & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer  from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate gambling refunds for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa,  Thailand, Indonesia, Egypt, Antarctica,  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, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
income tax wizard wizzard guru advisor advisors experts  specialist specialists  consultants taxmen   taxman tax woman planner planning preparer of Alaska,  Alabama,  Arkansas,  Arizona, 
 California,  Colorado, Connecticut,  
Delaware, District of Columbia,  Florida, 
Garland, Georgia,  Hawaii,  Idaho,  Illinois,
  Indiana,  Iowa,  Kansas,  Kentucky, 
 Louisiana,  Maine,  Maryland,  
Massachusetts, Michigan, Minnesota,  
Mississippi,  Missouri,  Montana,  Nebraska,  
Nevada, New Hampshire,  New Jersey, 
New Mexico,New York, North Carolina,  
North Dakota,  Ohio,  Oklahoma,  Oregon. 
Paris,  Rome, Sydney, Australia Hilton
Pennsylvania,  Rhode Island,  Rockwall, 
South Carolina, South Dakota, Tennessee,  
Texas,  Utah, Vermont,  Virginia, 
West Virginia, Wisconsin, Wyoming, 
British Columbia, Alberta, Saskatchewan, 
Manitoba, Ontario, Quebec City, 
New Brunswick, Prince Edward Island, 
Nova Scotia, Newfoundland, Yukon and 
Northwest and Nunavit Territories,  
Mount Vernon, Eumenclaw, Coos Bay 
and Dallas Houston Rockwall Garland 
Texas  Taxman and Tax Guru  and wizzard 
wizard - 
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/0e67fddf/attachment.htm
---------------------- multipart/alternative attachment--

Trackback

Trackback URL for this entry: http://www.centa.com/trackback.php/UsCaWeekofMon20040216000799.html

No trackback comments for this entry.

0 comments