Permanent Resident / US citizen wants t know about

Sent: Tuesday, November 29, 2005 10:19 AM
To: taxman at centa.com
Subject: Permanent Resident/US citizen
David,
I am new to your daily newsletters. Enjoy them very much. I am a US citizen
now living in Canada with Permanent Resident status since Jan. 2005. I do
now have a SIN as well as a Social Security number. I currently do not do
any work within Canada. I am an entertaiiner working Vegas, TV, cruise
ships, and corporate convention dates....all in the US. I also formed a
s-corp in April of 05 but have not used it at all. I intend to file a
dormant return on that and intend to keep it in the event I chose to use it
in the future. I make quarterly estimated payments to the IRS. My Canadian
wife and I live here in BC and we own a house together that we bought in
Dec. of 2002.
1. Am I to assume that I will be paying Canadian taxes as of 2005?
2. Am I assuming correctly that I will be required to file my 1040 federal
return to the US and then have a Canadian accoutant file a British Columbia
return?
3. I have been deducting my mortgage interest on my US 1040. If I have to
file a Canadian return too, will I be able to deduct the mortgage interest
in Canada as well?
4. My wife is a school principal. Can she deduct the mortgage interest on
her Canadian return?
Thank you.
--------------------------------
david ingram replies;
1a 	You will file a US 1040 and possibly state returns for states that you
perform in.
1b	You will then file a Canadian T-1 reporting all the income again and
calculate Canadian tax.
2.	It is better to have the same person do both the US and Canadian returns
at the same time.  I provide that service.
3.	The mortgage interest is not automatically deductible on your Canadian
return although it can be made deductible over time by following the
precepts set out in my November 2001 newsletter which you can find in the
top left hand box at www.centa.com.
4.	Your wife may not deduct the mortgage interest either without having
arranged or rearranged her affairs as above.
5.	I trust that you have filed a joint return with your wife for 2002, 2003
and 2004.  If not, we should refile before Xmas. You will get back $2 to
3,000 per year by filing a joint return.
Hope this helps.
You might want to invest in an hour or two of my time to explain it all to
the both of you.  As a self employed entertainer, you can arrange your
affairs to make the mortgage deductible.  this assumes that you have an open
mortgage and or can make extra payments on a regular basis.
===================
Answers to this and other similar  questions can be obtained free on Air by
david ingram on the last Sunday of each month.
On the last Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram will be
a 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.
------------------------------
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>
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<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
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and all non-contractual duties are expressly denied. All readers should
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www.featureweb.com <http://www.featureweb.com/> . David Ingram deals on a
daily basis with expatriate tax returns with:
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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
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. If it is your first seminar, Fred will
buy you dinner if you are pre-registered.
I, david ingram, will be at the Thursday evening following the last Sunday
of each month to cover mortgage interest as a deduction and give the class
an adding test.
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