Subject: Have you seen Tax bulletin IT 533?? What a joke!!!

Another blow for all Canadian Investors.What A joke

I might as well sell everything now, pack up and move to Mexico.

Hello,
I have recently been informed by my Canadian mutual fund company with whom I have an RRSP, that I should be reporting income earned in the plan to the IRS, and that as of 2002 tax year and forward, the IRS will be enforcing the requirement. They further state that I have two options -
1) to report the income on form 3520 by August 15, 2003
or
2) elect to defer the taxation on income earned until such time as I take a distribution.

Certainly option 2 sounds easier at the moment, but I am uncertain how I make this election, and if I have to do it every year from here on in. Also, is there any circumstance which would make option 1 preferable? Is there any other paperwork that I need to complete? Will I be alright starting this reporting in 2002 and not backtracking?

I also have a small GIC RRSP ($4700), which I would have rolled over into the mutual funds, except apparently until recently I was not allowed to make such a transaction (U.S. securities exchange commission rules, I believe) as I am residing in the. U. S. Does it make any sense to treat this one any differently?

I should point out that I very dutifully filled out both Canadian and U.S. tax forms for the years I resided in Canada and afterward, until I had cashed out all Canadian assets aside from the RRSPs. It just didn't occur to me that I had to report the retirement funds.
So what advice can you offer?
Thanks.

QUESTION: What is PERM? Is it differenr from Green Card?

David

This is a great site. I am from the US and I want to work in Canada - Do I have to file a tax return in Canada?

QUESTION:

I am Canadian Landed Immigrant and currently working in US on H1B visa. I
and my family are staying here in CT, US throughout the year 2004 except 2
months (60 days). Also, I have house in Canada and it is rented out
currently. Please suggest the best way to file my taxes in both countries
so that I will get the tax benefits as well as keeping
my Canadian Immigration Status in good shape.

Thanks,

QUESTION:

Hi,

I am about to accept an offer of employment for a US company based in
Milwaukee. The work is management consulting for their clients mainly in NY
state. I will keep my residence in the Toronto area and will be traveling
in the US from Monday to Thursday every week. I will not have an address in
the US other than various hotels.

I plan to enter the US under a TN visa though I have not been approved yet.
I do have experience as a consultant and have my MBA.

I am wondering if you can answer these questions for me:

1) I believe I would have to pay taxes to both the US and Canada but to what
state would I pay to?

2) Is there anyway I can find out roughly how much combined taxes would be?

3) Would you recommend contributing to 401k and rrsps?

4) I am fully covered for health,dental,vision under my husband's plan.
This includes while I am out of Canada. Have you ever heard of US companies
paying cash to an employee instead of the benefits?

5) Do you see any reason why I could be denied a TN?

6) Is my return something you can help me with? How much would you charge
to file a return of this type? I am married but my husband lives and works
in the Toronto area. I'm not sure if we should file together or not?

Many thanks,

My question is: Canadian-specific

QUESTION: I plan to purchase a rental condominuim and rent it to my parents.
Is the rental income from my parent's tax deductible?

David,

Could you possibly recommend an accountant in Edmonton who is knowledgable and practiced in tax law as it relates to real estate. Specifically, someone who could prepare a return that elects to rent out my principal residence without capital gains for up to four years.
A

Thanks

QUESTION:

Iwas born Dec 22/39 in Canada. I worked in Canada until Feb of 1997,
moved to the US and presently work with a TN1 visa.

I developed heart disease and have had two attacks since '01

I would like to return to Canada and retire there near my family before
it's too late.

I understand I have to work in the US for 40 quarters to get their
Social Security, I only have 27.

I assume I cannot collect from both, but what is the result of applying
the US/Canada treaty to my case?? Do I apply it to the Canadian or US?