US, Quebec and Canada tax -
My_question_is: Applicable to both US and Canada Subject: US and Canada tax Expert: taxman at centa.com Date: Friday January 12, 2007 Time: 11:14 AM -0500 QUESTION: Hello Experts, I am Canadian citizen and hold US'PR. I returned Canada and had been working for a Canadian from Jan 2004 to 1 May 2006. I have worked for US company since 8 May 2006. My wife is Canadian citizen still have been lived in Montreal. I own a house and a town house for my parent stayed in Canada (no income). What are my tax duties involves in US and Canada, and how much if you help me to file those taxes? Your help will be greatly appreciated. Sincerely ---------------------------------------------------------------- david ingram replies: If you have a US green (resident alien) card, you must file a US return for every year you are alive and have income. Therefore, you should have filed Quebec, Canadian and US returns for 2004 and 2005 while you were in Canada only. There would not likely have been any US tax owing because of foreign tax credits. You will obviously need to file the same returns plus (likely) a state return for 2006. If you intend to stay in Canada while working in the US, you will be a deemed resident of Canada and must report the US income in Canada which will likely generate some tax bill to Canada. If you are intending to stay in the US now, you would not be taxable in Canada on your US income but by being a non-resident of Canada, any increase in value of your house while you are a non-resident becomes taxable to Canada. A sample price list follows: Phone consultations are $400 for 15 minutes to 50 minutes (professional hour). Please note that GST is added if product remains in Canada or a phone consultation is in Canada. This is not intended to be definitive but in general I am quoting $800 to $2,400 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 $2,400 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. 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 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) email to taxman at centa.com <mailto:taxman at centa.com> www.centa.com <http://www.centa.com/> www.david-ingram.com <http://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 for expert help, assistance, preparation, or consultation in connection with personal or business affairs such as at www.centa.com <http://www.centa.com> . If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" 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.
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