Part II H1B visa to green card - wants to escape US

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Hi,
My company assigned the accountants from (one of the Big Five accounting firms)  to do my US 
and Canadian taxes (company is paying).  Based on the accountant's 
calculation, I need to pay about $7000 more for Canada and $1130 for the US. 
  I faxed them an article from your website (similar to your response to me 
-line 256 info).  They advised me that this is too risky.  Are they correct? 
  They even told me that I had to go to court to prove my case.
Your thoughts please.
Thanks,
XXXXXXXXX
=========================================
david ingram replies:
I do not want to get into a "pissing" match with your company's choice of  accountants.
I believe that their employee is incorrect in his or her interpretation of your situation based upon your email to me.
However, they have talked to you and perhaps have other information from the company (they are not sponsoring you for a green card for instance) and are basing their opinion on inside information that I am not privy to.
The worst penalty you will pay doing it my way is that you would have to pay the $7,000 if you were turned down.
However, I think you are also paying more to the US then you should be.  You should be combining your world income and filing a joint return this year in the US and claiming a foreign tax credit for the tax paid to Canada on the monies you and your husband earned in the US before your move.
I will be the first one to admit that this is not the way that "most" people file their returns because most accountants have never seen it done, let alone seen it succeed.
I have never seen it fail if the circumstances are right and you sound like you have the correct circumstances.
david ingram
Answers to this and other similar  questions can be obtained free on Air every Sunday morning.
Starting this Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier Partners and I will be hosting an INFOMERCIAL but 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 
>From: "David Ingram at home - bus at [email protected]" 
><[email protected]>
>Reply-To: "David Ingram at home - bus at [email protected]" 
><[email protected]>
>To: 
>Subject: H1B visa to green card - wants to escape US tax. = ask an income 
>tax and immigration expert experts consultant consultants specialist 
>specialists
>Date: Tue, 30 Mar 2004 23:20:47 -0800
>
>
>From:         xxxxxxxxxxxxxxxxxx
>Reply_To:       
>My_question_is: Applicable to both US and Canada
>Subject:        Any Loophole?
>Expert:         [email protected]
>Date:           Wednesday March 31, 2004
>Time:           04:17 PM -0800
>
>QUESTION:
>
>I moved to NJ from Toronto last May 26, 2003 on a H1B visa (3 years).  I am 
>100% sure that my employer will sponsor me for a green card.  My husband 
>took a 3-month leave of absence to help me settle in the US - he has H4 
>visa.  Our children are adults - we have no dependents.  Our house is owned 
>by me, my husband and my daughter (our adult son lives there too). We will 
>be selling our house this year and my husband will be moving as well on or 
>before June 1.  Am I a non-resident taxpayer of Canada for 2003?  If yes, 
>are there any loopholes to avoid being double taxed on my US income which 
>is quite substantial considering the moving expenses added into it (paid 
>for by the company)?  I have Canadian income from Jan. to May 2003.
>============================================================================
>david ingram replies:
>
>If I were to prepare your tax return, I would treat you as a tax resident 
>of the US and possibly a factual resident of Canada.  A factual resident of 
>Canada (because your husband is still here and you still have the house up 
>for sale) reports the US income on his or her tax return and then deduct / 
>exempt the US income on line 256 under Article IV of the US Canada Income 
>Tax Convention.
>
>I have done this dozens of times including audits and amending returns 
>where people in your position had already paid Canada tax incorrectly.  The 
>following Wolf Bergelt Tax case (you can find it and other cases at 
>www.centa.com [US/Canada Taxation]) is an example of this.  ( 
>http://www.centa.com/articles/U.S.Cdntaxation.htm )
>
>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.
>
>Let me know if I can help.  We can handle your return by snail mail, email, 
>fax or courier.
>
>At this late date, we would be filing a US extension because the US 
>deadline is April 15th and there are too many people ahead of you.
>
>Contact numbers and addresses are below AND
>
>=============================================
>
>Answers to this and other similar  questions can be obtained free on Air 
>every Sunday morning.
>
>Starting this Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of 
>Cartier Partners and I will be hosting an INFOMERCIAL but 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
>
>=============================
>
>David Ingram's US/Canada Services
>US/Canada/Mexico Tax Immigration & working Visa Specialists
>US / Canada Real Estate Specialists
>4466 Prospect Road
>North Vancouver,  BC, CANADA, V7N 3L7
>Calls accepted from 10 AM to 10 PM 7 days a week
>Res (604) 980-3578 Cell (604) 657-8451
>Bus (604) 980-0321
>[email protected]
>www.centa.com 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 & the author and any 
>and all non-contractual duties are expressly denied. All readers should 
>obtain formal advice from a competent financial, or real estate planner or 
>advisor & appropriately qualified legal practitioner, tax or immigration 
>specialist in connection with personal or business affairs such as at 
>www.centa.com. If you forward this message, this disclaimer must be 
>included."
>===============
>
>This from ask an income tax immigration planning and bankruptcy expert 
>consultant guru or preparer  from www.centa.com or www.jurock.com or 
>www.featureweb.com. Canadian David Ingram deals daily with tax returns 
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