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This question came from Ozzie Jurock's real estate website at www.jurock.com an excellent source of real estate information. For those wanting Canadian Mutual Fund advice, they should look at Fred Snyder's www.mutualfund101.com site.
My question is: Applicable to both US and Canada
QUESTION: My wife and I are American citizens who have recently
bought rental property in BC. We are planning to
immigrate to Canada in the next few years. After our
purchase we wanted to have a Canadian accountant help
us with NR6's and any other tax involvements down the
line. The accountant we worked with charges us $750 for
an initial consultation and filing an NR6 for each of us.
This seemed rather pricey for the minimal work involved
and the fact that we needed to also find our own
guarantor. I would like your opinion about going rates for
this work and perhaps some idea of your fees were we to
work with you in the future.
Thanks for you very helpful
Q&A column.
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david ingram replies:
My typical charge for the same service would be $700 plus $49.00 GST which would put you in the same price range.
The NR-6 is available at:
http://www.ccra-adrc.gc.ca/E/pbg/tf/nr6/nr6-00e.pdf
Depending upon the property and for a further fee, we will also act as the tax agent and have associated rental agent services as well.
I prefer to say that I charge you for the time and advice and throw in the form. I generally charge $350.00 an hour for US / Canadian tax and Immigration consulting (both directions).
Although, the form is a minimal one, the advice and implementation is important and there are few of us doing it so it is a supply and demand phenomenon.
When it comes to the final returns, we will prepare the Canadian Returns AND US and state at the same time or the Canadian Returns and a dummy US return so that your US accountant can just plug in the figures and not spend hours figuring out where and how to put them in to his or her system.
If you go to www.centa.com and read the "US/Canada Tax" Section in the second box down on the right hand side, it will give you an idea of the ifferences between the two countries.
If you go to the Tax Guide section, you will find a chapter on renting in Canada.
And if you are serious about immigrating to Canada, be advised that processing times have increased dramatically in the last year.
The following was my answer a short time ago to someone immigrating from Great Britain.
david ingram replies:
You will first have to decide if you qualify to immigrate to Canada. You could come as an immigrant (easier under 50) or you could come as a business investor but I do not think that a bed and breakfast would qualify but someone will comment from the list this goes to (with your identification removed.)
To start with, you should go to http://www.cic.gc.ca/english/newcomer/guide/index.html and read the Canadian Government's site on immigrating to Canada
Make sure that you fill in the self-assessing questionnaire at http://www.cic.gc.ca/english/skilled/assess/index.html If you get 67 points on this self-assessment, , you will qualify if nothing else rears its head. The mark was 75 just a couple of months ago. If you get the 67, let me know and we can continue on from there.
As a new immigrant, you can set up an offshore trust to protect your assets from Canadian tax for five years. If you do this, you are only taxable on amounts earned in the trust that you take out to live on. This does not make sense to me though because if you are going to buy a house for a B & B a wife and two almost adult kids, it will take most of your money to buy one and you should pay cash for the best tax break. If you need money after for investment, borrow against the house and the mortgage interest will be deductible. Goto www.centa.com and read the Nov 2001 newsletter for more information on this.
Your house in Great Britain is taxable in Canada also but any increase in value will not be taxable if you leave Canada within ten years..
You should also go to www.centa.com and read the US/Canada taxation section. Although it might seem that it does not apply to you, 95% does and Article IV of the US/CANADA Income Tax Treaty is almost word for word with the UK/CANADA Income Tax Treaty. The only exception is that you do not have to file a US income Tax return but will continue to file an A4 GB return to report your rental in GB.
I am available for phone consultations by the way. The fee would be $350.00 Cdn for an hour or part. I do not, as a rule, usually charge for a quick follow up to that question you did not understand and if you want a 1/2 hour now and 1/2 an hour later, I am amenable to that as well. It will give you time to ponder in between. However, I charge for the full hour at the first billing.
Answers to this and other similar questions can be obtained free on Air every Sunday morning.
Every 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
Local phone calls to (604) 280-0600 - Long distance calls to 1-866-778-0600.
Old shows are archived at the site.
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321
New email to [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 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 in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
This from "ask an income tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, 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, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
Your name has been added to our email list because of an enquiry we have received, we may not answer your question but
another similar question will be as we lump them.
You may find more answers at www.centa.com
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
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