Canadian Working U.S., Living in Canada,

F
My_question_is: Applicable to both US and Canada
Subject:        Canadian Working U.S., Living in Cnada, (Tax Q.)
Expert:         taxman at centa.com
Date:           Sunday October 23, 2005
Time:           03:35 PM -0700
QUESTION:
I work in the U.S. , live in Canada and I contribute to my company matched
401k.  I also purchase RRSP's in Canada.  Is this the correct thing to be
doing, or should I be pursuing another avenue?  Thanks in advance.
----======================================
david ingram replies:
Unless your employer is matching your 401k contributions, quit them NOW.
The reason is that they are not a deduction on your Canadian return and will
be taxable to you when you take them out.
If your employer IS matching the funds, you would be better off having the
employer provide their matched half to you to incest in a Canadian RRSP.
Of course, if you have a non-deductible mortgage in Canada, I can make a
good argument that you should not have an RRSP either and have a book coming
out at Xmas on that subject called the CEN-TA CLAUSE.
Make sure that you claim the State tax paid, the Social Security paid, the
Medicare Paid AND the federal tax paid as a foreign tax credit on line 431
on Schedule 1 and the comparative line of your provincial 428 when doing
your tax returns.  Many Canadian preparers are not claiming the Social
Security and Medicare paid as a foreign tax credit because of a bulletin
that The CRA issued a couple of years ago.  the bulletin said that another
country's social security was NOT eligible for a Canadian Foreign tax credit
and a lot of preparers stopped there.  However further along in the
bulletin, it was very clear that it WAS deductible if part of a treaty.  In
the case of the US and Canada, there is a treaty.   If you have failed to
deduct it, you can amend back to 1994 before Xmas and back to 1995 after Dec
31, 2005.
Answers to this and other similar  questions can be obtained free on Air
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram am a regular
guest on Fred Snyder of Dundee Wealth Managers' 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 <http://www.600am.com/>
Call (604) 280-0600 to have your question answered.  BC listeners can also
call 1-866-778-0600.
Callers to the show and questioners on this board can also attend the
Thursday Night seminars on finance and making your Canadian Mortgage
Interest deductible.
And for those in the Vancouver area, Fred is running an infomercial for 1/2
hour every night in October on Channel 10 television at "groooaaannnn" 1 AM
in the morning. It has a couple of useful concepts in it that can be
recorded to really get the idea.
Every Thursday Evening, Fred Snyder of Dundee Wealth Management conducts one
of 17 different financial seminars in the boardroom of his office
Time:    7:00 to 9:30 PM
Date:    Every Thursday evening
Place    1764 West Seventh
             Vancouver (corner of Burrard)
Phone (604) 731-8900 to register
No cost - no obligation
Topics always cover mortgage interest as a deduction
other topics - getting the mortgage, estate planning, critical care
insurance, income taxation, differences between stocks and bonds, and
usually the most innovative HELOC mortgage offered in Canada from Manulife
Bank
If you are starting in downtown Vancouver and do not want to go home first,
one of the excellent THAI HOUSE restaurants is in the same building and
makes a nice start to the evening.
I, david ingram, manage to make three out of 4 of them to cover mortgage
interest as a deduction and give the class an adding test.
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
Home office 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 10 PM 7 days a week (please do not fax or phone
outside of those hours as this is a home office)
email to taxman at centa.com <mailto:taxman at centa.com>
www.centa.com <http://www.centa.com/>  www.david-ingram.com
<http://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 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 in connection with personal or business
affairs such as at www.centa.com <http://www.centa.com> . If you forward
this message, this disclaimer must be included."
Be ALERT,  the world needs more "lerts"
This from "ask an income tax and immigration expert" from www.centa.com
<http://www.centa.com/>  or www.jurock.com <http://www.jurock.com/>  or
www.featureweb.com <http://www.featureweb.com/> . David Ingram deals on a
daily basis with expatriate tax returns with:
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GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas,
San Antonio and Houston Texas
Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration
Tips, Income Tax and Immigration Wizard Income Tax and Immigration Guru
Income Tax and Immigration Consultant Income Tax  and Immigration Specialist
Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist
expert preparer consultant expatriate anti money laundering money seasoning
FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions
Alaska,  Alabama,  Arkansas,  Arizona,
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ask international non-resident income tax expert preparation & immigration
consultant david ingram, experts on rentals mutual funds  RRSP RESP IRA
401(K) & divorce CKBD 600AM 9 AM Sunday on Fred Snyder's IT's YOUR MONEY

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