Moved to US with US citizen wife - international non-resident cross border expert income tax & immigration help estate famil
My wife was born in the US but only spent 3 days there. She has been living in Canada for 45 years until last year. I am a Canadian citizen working in the US on a L1 Visa.
We have been living in xxxxxxxx for the last 18 months. We own a home in xxxx and have been renting it out since we came to the US 18months ago.
My company has asked me to stay, and we are trying to navigate through all the tax implications of doing so. Do we have to pay capital gains tax on our home in Canada if we sell it? Will my wife be liable for taxes to the US forever because she is a dual citizen?
If you have any guidance for us, or can recommend the type of professional we should be talking to we'd appreciate it.
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david ingram replies:
You will have been asking questions everywhere and have found out how hard it is to find anyone who can deal with them.
You are, however, a typical client of this office.
and T1159 ( http://www.cra-arc.gc.ca/E/pbg/tf/t1159/t1159-06e.pdf ) should then be converted to US dollars and included on US schedule E, 4562 and 1116.
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david ingram replies:
You will have been asking questions everywhere and have found out how hard it is to find anyone who can deal with them.
You are, however, a typical client of this office.
1. You should each have filed a section 216(4) tax return on Canadian forms 1159 and 776 to report your retnal income in 2006. That return was due June 30th so is no late and subject to penalty.
http://www.cra-arc.gc.ca/E/pbg/tf/t776/t776-fill-06e.pdf (fillable) )
2. figures on the T776 (
and T1159 ( http://www.cra-arc.gc.ca/E/pbg/tf/t1159/t1159-06e.pdf ) should then be converted to US dollars and included on US schedule E, 4562 and 1116.
3. If you sell the Toronto house, you will both need to fill out
forms T2062 ( http://www.cra-arc.gc.ca/E/pbg/tf/t2062/t2062-07e.pdf ) and
T2062A ( http://www.cra-arc.gc.ca/E/pbg/tf/t2062a/t2062a-07e.pdf )
within 10days of the sale to avoid a $25.00 a day fine (each).
Filling out the T2062 and T2062A forms enables you to have 25% withholding tax on the increase in value fromwhen you left Canada until the date of sale rather than a withholding of 25% of the gross sale price.
Your wife has always been liable to file US income tax returns and both of you must now file froms TDF 90-22.1
http://www.irs.gov/pub/irs-pdf/f90221.pdf - read bottom of form to see fines - a minimum of $10,000 now
and 8891 to avoid penalties of up to $500,000 plus five years in jail for failure to file the TDF 90-22.1 and 35% of the amount in an RRSP plus 5% a year for evcery year you fail to file or conform to the older rules for form 8891.
http://www.irs.gov/pub/irs-pdf/f8891.pdf
Your wife should file six years back to avoid significant penalties.
She will always be liable to file US returns.
You should take immediate steps to take out a green card with your wife sponsoring you. That will give you far more job security and the ability to change jobs at will if you want to.
We, of course, provide trhe kind of services you require.
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David Ingram wrote:
However, I regularly search for the words"PAYING CUSTOMER" and
always answer them first if they did not get spammed out. As an example, as I
write this on June 28th, since June 16th (12 days), my 'spammed out' box has
7,118 unread messages, my deleted box has 2630 I have actually looked at and
deleted and I have answerd 63 email questions I have answered for clients and
strangers. I have also put aside 446 messages that I am maybe going to try
and answer because they look interesting.
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)
$1,600 would be for two people with income from two countries
David Ingram expert income tax 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
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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 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.
Therefore, if an email is not answered in 24 to 36 hours, it
is lost in space. You can try and resend it but if important, 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'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)
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."
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 $400 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.
This is not intended to be definitive but in
general I am quoting $800 to $2,800 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two
interest slips and you lived in one country only - no self employment or rentals
or capital gains - you did not move into or out of the country in this
year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no
rental
$1,200 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.
$1,500 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
$1,600 would be for two people with income from two countries
$2,800 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 $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely
$450
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 $800 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.
Just a guideline not etched in
stone.
This from "ask an income trusts tax 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,
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