Moving Back to on short notice - Wolf Bergelt -
Hello
David,
I need your help as always.
I moved to xxxxxxxxxxxx, USA last May.
I need your help as always.
I moved to xxxxxxxxxxxx, USA last May.
.
I know from your previous emails that it is advantageous that I stay in the US with out returning to Canada for the first year.
I know from your previous emails that it is advantageous that I stay in the US with out returning to Canada for the first year.
The problem I have now is my daughter is now expecting a baby.
This will mean my wife and my plan of her joining me next year will never happen as my wife will always want to stay and support our daughter. I also have a chance to transfer back to Caanda because my company has not managed to fill my position.
The Canadian branch of my Company wants me as soon as possible.
This would mean I would not be in the US for one year, assuming I leave in the next few months.
That also depends on the USA devision letting me go without plenty of the
cost they incurred, I estimate this at $20K-$30KUS.
What are my tax liabilities if I leave early or stay till my year is
up?
I not sure what I have earned so far but a rough guess would be for last
year in Canada $40KCND and in USA $60US.
If I do come back early and have to pay US back, could I use this loss on
any of my tax returns?
I would also need to sell the house here so what other tax concerns will
that cause?
I appreciate your help and look forward to you preparing my taxes for
last year.
Sincerely,
------------------------------------
david ingam replies:
david ingam replies:
The reason for staying in the US and not coming back for that first
year and having your family visit you in the new home in the US was to show that
'you' had indeed left Canada and were intending to remain outside of Canada.
If you genuinely intended to leave and got rid of all of your Canadianisms except for your family which was to follow you, you should be tax free as far as Canada ais concerned according to the Wolf Bergelt Case.
In 1986, Wolf Bergelt won non-resident status before Judge Collier of the Federal Court, even though he was only out of the country for four months and his family stayed behind to sell his house. He had given up his memberships, kept only one bank account and rented an apartment in California until his house in Canada was sold. Four months after his move, his company advised him that he was being transferred back to Canada. Judge Collier said his move was a permanent (although short) move and he was a non-resident for tax purposes for those four months.
Buying a house for your family to join you is good evidence of your intent.
If, for some reason, the US company makes you repay something, they should reflect that by taking it off your gross pay and giving you a W2 slip showing less earnings therefore making it not taxable.
Moving expenses in and out of Canada are not deductible in your case and most other cases as well.
I do not imagine that you will have made a profit on the US house so that should not cause a problem. Neither is a loss a deduction.
Hope this helps.
For 2007 I would still do a departing Caanda return unless the Canadian house has gone up significantly in value. If that happened, it might be to your advantage to remain a resident to make the capital gains on the house tax free,
------------------------------------------------------------------------
On December 25, 2007, David
Ingram wrote:
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 line 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. e bankruptcy expert US Canada Canadian American Mexican Income Tax service and help
However, I regularly search for the words"PAYING
CUSTOMER" and always answer them first if they did not get spammed out. For the
last two weeks, I have just found out that my own email notes to myself have
been spammed out and as an example, as I write this on Dec 25, 2007 since June
16th, my 'spammed out' box has 47,941 unread messages, my deleted box has 16645
I have actually looked at and deleted and I have actually answered 1234 email
questions for clients and strangers without sending a bill. I have also
put aside 847 messages that I am maybe going to try and answer because they look
interesting. -e bankruptcy
expert US Canada Canadian American Mexican Income Tax service and
help
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) expert US Canada Canadian American Mexican Income Tax service help.
$1,700 would be for two people with income from two countries
Catch - up returns for the US where we use the Canadian return as a guide for seven years at a time will be $150 to $500.00 per year depending upon numbers of bank accounts, RRSP's, existence of rental houses, self employment, etc.
Just a guideline not etched in stone.
David Ingram expert income tax service 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 advice on bankruptcy
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 line 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. e bankruptcy expert US Canada Canadian American Mexican Income Tax service and help
Therefore, if an email is not answered in 24 to 36 hours,
it is likely lost in space. You can try and
resend it but if important AND YOU TRULY WANT OR NEED AN ANSWER from 'me', 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 expert US
Canada Canadian American Mexican Income Tax service and
help.
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) expert US Canada Canadian American Mexican Income Tax service help.
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."
e bankruptcy expert US
Canada Canadian American Mexican Income Tax service and
help.
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.
expert US Canada Canadian American Mexican
Income Tax service and
help.
This is not intended to be definitive but in
general I am quoting $900 to $2,900 for a dual country tax
return.
$900 would be one T4 slip one W2 slip one or two
interest slips and you lived in one country only (but were filing both
countries) - no self employment or rentals or capital gains - you did not move
into or out of the country in this year.
$1,100 would be the same with one rental
$1,300 would be the same with one business no
rental
$1,300 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.
$1,600 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
$1,700 would be for two people with income from two countries
$2,900 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 $200.00 up.
With a Rental for $400, two or three rentals for
$550 to $700 (i.e. $150 per rental) First year Rental - plus
$250.
A Business for $400 - Rental and business likely
$550 to $700
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 $900 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.
Catch - up returns for the US where we use the Canadian return as a guide for seven years at a time will be $150 to $500.00 per year depending upon numbers of bank accounts, RRSP's, existence of rental houses, self employment, etc.
Just a guideline not etched in stone.
This from "ask an income trusts tax service 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,
Great Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand,
Indonesia, 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, and any of the 43 states with state tax
returns, etc. Rockwall, Dallas, San Antonio Houston, Denmark, Finland,
Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax
Immigration Wizard Antarctica
Rwanda Guru Consultant Specialist Section 216(4) 216(1) NR6
NR-6 NR 6 Non-Resident Real Estate tax specialist expert
preparer expatriate anti money laundering money seasoning
FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border
transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US Income
Tax Convention. Advice on bankruptcy e
bankruptcy expert US Canada Canadian American Mexican Income Tax
service and help .
David Ingram expert income tax service 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 advice on bankruptcy
New York, Boston, Sacramento, Minneapolis,
Salem, Wheeling, Philadelphia, Pittsburgh, Atlanta, Pensacola, Miami, St
Petersburg, Naples, Fort Myers, Cape Coral, Orlando, Atlanta, Arlington,
Washington, Hudson, Green Bay, Minot, Portland, Seattle, St John, St John's,
Fredericton, Quebec, Moncton, Truro, Atlanta, Charleston, San Francisco, Los
Angeles, San Diego, Sacramento, Taos, Grand Canyon, Reno, Las Vegas, Phoenix,
Sun City, Tulsa, Monteray, Carmel, Morgantown, Bemidji, Sandpointe, Pocatello,
Bellingham, Custer, Grand Forks, Lead, Rapid City, Mitchell, Kansas City,
Lawrence, Houston, Albany, Framingham, Cambridge, London, Paris, Prince George,
Prince Rupert, Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague, Lisbon,
Madrid, Atlanta, Myrtle Beach, Key West, Cape Coral, Fort Meyers,
Berlin, Hamburg, Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait,
Molokai, Beijing, Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina,
Red Deer, Olds, Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La
Prairie, Davidson, Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby,
Surrey, Edinburgh, Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney,
Nanaimo, Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich, Kyoto,
Nanking, Rio De Janeiro, Brasilia, Colombo, Buenos Aries, Squamish, Churchill,
Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope, Penticton, Kelowna,
Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis, Centralia, Bradford,
Stratford on Avon, Niagara Falls, Atlin, Fort Nelson, Fort St James, Red Deer,
Drumheller, Fortune, Red Bank, Marystown, Cape Spears, Truro, Charlottetown,
Summerside, Niagara Falls, income trust, Income Tax Treaty Convention.
- e bankruptcy expert US Canada
Canadian American Mexican Income Tax service and
help.
david ingram International
non-resident cross border expert income tax & immigration help estate family
trust assistance expert preparation & immigration consultant, income
trusts experts on rentals mutual funds RRSP RESP IRA 401(K) & divorce
preparer preparers consultants Income Tax Convention Treaty.
advice on bankruptcy expert US Canada
Canadian American Mexican Income Tax help.
Be ALERT, the world needs more
"lerts".
bankruptcy expert US Canada Canadian American Mexican Income Tax
service help. -
expert us Canada Canadian Mexico
income tax service and help
help
No virus found in this incoming message.
Checked by AVG Free Edition.
Version: 7.5.516 / Virus Database: 269.19.12/1245 - Release Date: 26/01/2008 3:45 PM
What's Related