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Work in Dubai and CRA - T626 - Overseas Employment Tax Credit -

QUESTION:I will be working in Dubai for 2 months with a residency permit earning good money. This can be paid to me or to my Canadian company which I own ((its an Inc).I own and will be commuting from a home in Edmonton ( 2 weeks in Dubai, 2 weeks home) and my wife will make a trip but will stay at home in Alberta.I cant see a way of avoiding tax. I suspect its better for the company to be paid rather than me personally - any advice?
david ingram replies:

For the two months or six months, there is no way to avoid income taxas described. Paying your corporation would likely help in the shortterm or in income splitting. However, if you are truly incorporatedand have A NON-DEDUCTIBLE MORTGAGE ON YOUR HOUSE, you should not beincorporated until you have used the techniques in my November 2001newsletter.

IF, and I say IF you were going to be there for six months or more, youcould arrange for a Canadian company (not yours) with more than 5 fulltime employees to hire you and send you to Dubai as their employee.

In that case, by filing form T626, you could earn up to 80% of $100,000over a year. to qualify, you have to be employed out of the countryfor for at least six months. 5 months and 21 days does NOT QUALIFY.

This older question will help

Hello David,

I found your contact information byGoogling for help on preparing Canadian 626 OETC forms. xxxxxx xxxxxhas field service personnel that spend weeks, months, and sometimesyearsout of the country while supervising the installation of mechanicalequipmentsold by xxxxxxxx to a client. We have been preparing 626's foremployeefor several years, but administrative staff has changed and we havelostthe experience in this.

Question is:

One employee was in Australia for theentire year of 2006 and for about 4 months of 2007. He received theOETC for 2006 taxation year. Obviously he only effectively needed6 months of 2006 to qualify for the 626 for that year, so can theremainingmonths of 2006 be used to establish a claim for 2007 (in which he wasawayonly 4 months).

I don't expect to access your time andexpertise for free, so please let me know how compensation can bearranged.

Thank you in advance,

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buying house in the us - David Ingram expert income tax and immigration help and preparation of US Mexico non-resident and cross

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Rolling 401k to RRSP -

I have recently moved back to Canada from the US and I have a couplequestions about rolling a 401(k) into an RRSP (I know in generalthis is not the best financial practice, but it looks like thiswould be the best way for me to get access to the funds to use asa down payment on a property).1. I know it's possible to roll and IRA into an RRSP. Is it possible to do so with a 401(k). From everybody I have talked to so far I am getting mixed signals as to whether this is possible, or I have to roll the 401(k) into an IRA first.2. What documentation, if any, do I need to show that I am rolling the 401(k), or the IRA, into an RRSP, so that it simply does not look like a contribution.Thanks!
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Question Regarding a Canadian Purchasing a Residence in the US -

Hello David,
I noticed your email address on theinternet and thought you might be able to assist me.
What I would like todo:
I am a Canadian citizen fromNova Scotia and I work for anOil Company in Alberta.
I will continue to work in Alberta (orCanada) but I want topurchase a townhouse in Washington County,PA.
I contacted the Royal Bank ofCanada regardingobtaining a mortgage for the property in PA and was advised that you cannotobtain a Canadian mortgage on a US property becauseif there is ever a default they cannot obtain the property. I was advised toobtain a USmortgage.
I contacted a mortgage lender in PAand was advised that I needed a Green Card (which takes 5-7 years and I am notinterested in obtaining) to obtain a USmortgage.
 Any advise or anyone yourecommend that I contact?
david ingramreplies:
Never head of such a thing.
If you have 35% down, you should be able toget a mortgage anywhere in the United States.
I likely have 300 clients who have USmortgages without a green card.
Try another bank, S & L, or a mortgagebroker.
Just watch out for 'up front' fees at amortgage broker's office. 
Unfortunately, there are many out there whowill charge you an up front fee and then say they cannot get a mortgage for youand keep the fee.
If you do decide to use a broker, make sureany fee is 100% contingent upon their arranging a mortgage on terms that aresatisfactory to you or approved by  your brother or mother or lawyer,etc.  That means they get nothing - not even $50.00 if you do not get amortgage.
For instance, your agreement might say thatthe broker is entitled to a fee of $4,000 upon obtaining a mortgage at 6%amortized over 30 years with no changes or interest rate adjustment for thirtyyears
The massive sub-prime mortgage meltdown in theUS at the moment has happened because 100's of thousands of people took outmortgages with low payments that doubled or even tripled two yearslater.
BEFORE you sign any purchase ormortgage agreement, have it vetted by a lawyer or KNOWLEDGEABLE real estateperson with knowledge of local law. 
Strangely enough, I know the area you arebuying in.   My sister lives in Wheeling, West Virginia, just acrossthe line, 35 miles to the West on highway 40 (the National PIKE), the firstFederally funded highway in the US.  If you go 60 miles southeast onhighway 40, you come to historic Fort Necessity, which few Americans remember orknow of as part of their history. (my 14 year old son Peter told me aboutit in 1998).
In the summer of 1754 a battle at FortNecessity was the opening action of the French and Indian War. This was aclash of British, French and American Indian cultures. George Washington surrendered to the French troops at the Fort which he built out of "Necessity"but was allowed to leave with his troops and most of his arms, surrendering onlyhis swivel guns. He also was promoted to Lieutenant Colonel at Fort Duquesne atthe age of 23 at the start of this skirmish. In 1759, Wolfe won at the Battle ofthe Plains of Abraham and by 1763 the war that ended with the removal ofFrench power from North America. Remember that Gorge Washington was a BritishOfficer at this point.  However, the stage was set for the AmericanRevolution.  In 1755 George was made a full Colonel and in 1758, promotedto acting Brigadier General at the age of  26.  12years later, at the age of 43, George Washington raised the Continental Army atCambridge Massachusetts and Valley Forge outside of Philadelphia. Washington Country, your destination was formed in 1791 and named afterGeorge.
But it did not stop there. WashingtonCounty was the centre of the end of the 1791 Whiskey Rebellion.  In 1794,George Washington, now president of the United States, at the head of a12,500 member Militia marched into Monongahela and staunched or ended the rebellion with thearrest and imprisonment of a very small number of people.  2 were sentencedto death but Washington pardoned them because one was 'simple' and the otherinsane.  Two or three of the others did die in prison.  Lots ofhistory in Washington County.
My sister and her husband and three childrenlive in Wheeling West Virginia (30 miles away) and one of my favourite clientsof all time, Virginia Harper is buried in Wheeling.  One of my otherfriends has a mother and sister living in a Hutterite Colony 50 miles south eastat Uniontown. 
And, although Scranton PA  is 180 milescloser to New York City than it is to Washington County, I have an 82 CadillacEldorado convertible parked outside my house as I write this.  Of course,the Caddy was bought in Scranton.
Good luck on your purchase.  You can doit if you have the cash for the down payment.
On February 11, 2008, David Ingramwrote:

It is very unlikely that blind or unexpected email to mewill be answered.  I receive anywhere from 100 to 700  unsolicitedemails a day and usually answer anywhere from 2 to 20 if they are not fromexisting clients.  Existing clients are advised to put their 'name and PAYING CUSTOMER' in the subject line and getanswered first.  I also refuse to be a slave to email and do not look at itevery day and have never ever looked at it when I am out of town. 
e bankruptcy expert  USCanada Canadian American  Mexican Income Tax  service andhelp
However, I regularly search for the words"PAYING CUSTOMER" andalways answer them first if they did not get spammed out. For the last twoweeks, I have just found out that my own email notes to myself have been spammedout and as an example, as I wrote this on Dec 25, 2007 since June 16th, my'spammed out' box has 47,941 unread messages, my deleted box has 16645 I haveactually looked at and deleted and I have actually answered 1234 email questionsfor clients and strangers without sending a bill.  I have also put aside847 messages that I am maybe going to try and answer because they lookinteresting. -ebankruptcy expert  US Canada Canadian American  Mexican Income Taxservice and  help
Therefore, if an email is not answered in 24 to 48 hours,it is likely lost in space.  You can try andresend it but if important AND YOU TRULY WANT OR NEED AN ANSWER from 'me', youwill have to phone to make an appointment.  Gillian Bryan generally acceptsappointment requests for me between 10:30 AM and 4:00 PM Monday to FridayVANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321.  david ingramexpert  US Canada Canadian American  Mexican Income Tax service and help.
david ingram's US / Canada Services
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Disclaimer:  Thisquestion has been answered without detailed information or consultation and isto be regarded only as general comment.   Nothing in this message isor should be construed as advice in any particular circumstances. No contractexists between the reader and the author and any and all non-contractual dutiesare expressly denied. All readers should obtain formal advice from acompetent and appropriately qualified legal practitioner or taxspecialist for expert help, assistance, preparation,or consultation  in connection with personal orbusiness affairs such as at If youforward this message, this disclaimer must be included." e bankruptcy expert  US Canada CanadianAmerican  Mexican Income Tax  service andhelp.
David Ingram gives expert income taxservice & immigration help to non-resident Americans &Canadians from New York to California to Mexico  family,estate, income trust trusts Cross border, dual citizen - out ofcountry investments are all handled with competence &authority.
Phone consultationsare $450 for 15 minutes to 50 minutes (professional hour). Please note that GSTis added if product remains in Canada or is to be returned to Canada or a phoneconsultation is in Canada. ($472.50 with GST if inCanada)expert  US Canada Canadian American  MexicanIncome Tax  service andhelp.
This is not intended to be definitive but in general I amquoting $900 to $3,000 for a dual country tax return.
$900 would be one T4 slip one W2 slip one or two interestslips and you lived in one country only (but were filing both countries) - noself employment or rentals or capital gains - you did not move into or out ofthe country in this year.
$1,200 would be the same with one rental
$1,300 would be the same with one business norental
$1,300 would be the minimum with a move in or out of thecountry. These are complicated because of the back and forth foreign tax credits. - The IRS says a foreign tax credit takes 1 hour and 53minutes.
$1,600 would be the minimum with a rental or two in thecountry you do not live in or a rental and a business and foreign taxcredits  no move in or out

$1,700 would be for two people with income from twocountries

$3,000 would be all of the above and you moved in and outof the country.
This is just a guideline for US / Canadianreturns
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 Canadianincome or filing period) with about the same things in the same range with alittle bit more if there is a state return.
Moving in or out of the country or part year earnings inthe US will ALWAYS be $900 and up.
TDF 90-22.1 forms are $50 for the first and $25.00each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00each.
18 RRSPs would be $900.00 - (maybe amalgamate acouple)
Capital gains *sales)  are likely $50.00 for thefirst and $20.00 each after that.

Catch - up returns for the US where we use theCanadian return as a guide for seven years at a time will be from $150 to$600.00 per year depending upon numbers of bank accounts, RRSP's, existence ofrental houses, self employment, etc. Note that these returns tend to beinformational rather than taxable.  In fact, if there are childreninvolved, we usually get refunds of $1,000 per child per year for 3 years. We have done several catch-ups where the client has recieved as much as $6,000back for an $1,800 bill and one recently with 6 children is resulting in over$12,000 refund. 

This is a guideline not etched instone.  If you do your own TDF-90 forms, it isto your advantage. However, if we put them in the first year, the computercarries them forward beautifully.
This from "ask an income trusts tax service and immigration expert" from or or Ingram deals on a daily basis with expatriate tax returns withmulti jurisdictional cross and trans border expatriate problems  for theUnited 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 ofthe 43 states with state tax returns, etc. Rockwall, Dallas, SanAntonio Houston, Denmark, Finland, Sweden Norway Bulgaria Croatia IncomeTax and Immigration Tips, Income Tax  Immigration Wizard AntarcticaRwanda Guru  Consultant Specialist Section 216(4) 216(1) NR6NR-6 NR 6 Non-Resident Real Estate tax specialist expertpreparer expatriate anti money laundering money seasoningFINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross bordertransactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US IncomeTax Convention. Advice on bankruptcy  ebankruptcy expert  US Canada Canadian American  Mexican Income Taxservice and help .

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non-resident and cross border returnswith rental dividend wages self-employed and royalty foreign tax credits familyestate trust trusts income tax convention treaty advice onbankruptcy

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Canadian nonresident California, USA rental condo -

QUESTION:Just confirming that the Canadian resident return will include the us rental income/loss and the us 1040 nr return will only have the us renatl incoem/loss as the treaty permits exlusion of the canadian income. HOwever, for CA purposes the worldwide income as to be used for calculation of the CA 504NR return - although the only taxable income would be the rental income/loss.Is this correct?Thanks
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TN Visa Holder Canadian Citizen Want to Sponosor Spouse -David Ingram gives expert income tax & immigration help to non-resident

QUESTION:My brother living in USA on H1B visa and married Canadian Citizen who have TN Visa . His wife to sponsor him for Canadian Immigration what she can do? There is any problem in processing?
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Property sale in Canada - T2062 t2062A T1161 --

QUESTION:Hello ! I am a Canadian citizen moved to USA in Jan.1.07. I am selling my house after 10 months(empty after I left).I still have bank a/c's and my wife is a Canadian PR. Will I have problems to sell my house in Chatham, Ontario. Please reply - 309-333-xxxx.Regardsxxxxx xxxxxxxx
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US Canada Tax Preparation -

QUESTION:Im a canadian citizen living in the US as a resident alien. I know i have to file both US and canada taxes but im not familiar with the details,. Where can i find more info to guide me in preparing both US and canada returns?Thanks
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Ownership Structure of US Real Estate -

WOW. Overwhelming amount of information here. I will keep looking but will ask. My wife and I bought a piece of dirt in MT three yrs ago free and clear. The title reads with both our names on it. We have since built a house on it. I am close to getting a deal done on another piece of bare land. I have been poking around and notice all shorts of different ways peopple own there land there. Trusts, Living Trusts, Profit Share Plans, Revocable Trusts, Companies structures of all sorts. What is the ideal way to own real property in the US. OR just owning it our names the way to do it and we are wasting time structuring any other way.
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Canadian selling vacation house in California -

david ingram replies:
1.   Not true.

2.   The escrow agent will withhold 10% of the sale price for federaltaxpurposes and 3.5% for California tax purposes and give you the balanceright away UNLESS
a - the house is being bought as a personal residence by someone and isless than $300,000 or
b - you have written to the International Tax Office of the IRS amndsubmitted documentation which proves that you did not make a profit orthe 10% would be too much.  The IRS will send a certificate statingthat no withholding is required or stating an amount.  Canada has amuch more onerous set of withholdings.  Our withholding is 25% unlessforms 2062 and 2062A are submitted to the CRA and a comfort certificateis issued allowing a smaller withholding.

If you have either a or b above,  you will get all of your money rightaway.

3.   If there is no profit, there is no tax in the US.  Sometimes,there is a profit in Canada because of exchange or vice versa.  Inother words, you could have made a profit int he USA and owe tax andstill have a very real loss in Canadian funds for Canada.  That hasbeen true int eh last three years. 

The reverse was true from 90 to 95 to 2004 .  You could have lost moneyin the US and still owe tax to Canada because of the very real rise inthe value of the US dollar.

The same situation applies to 43 other states.  Hawaii, for instance,withholds 5%.  California and Vermont (2 of many) have Alternativeminimum tax calculations.  California does its calculation based uponyiour world income.  Vermont just uses US income. 

Every state is different although some are just about the same.