eMail Article To a Friend View Printable Version

Filing a nonresident return after deemed disposition - T1161 T1243 T1244

I did a deemed disposition as of jan 1 2005, and liquidated all my canadian investments in 2006.

This year, I received:
an NR4 and a T2062 for my life insurance policy
(the NR lists gross income but no withheld tax)
a t5 (?) for interest income
a mutual fund t5008 for securities I sold

I know how to show the interest income, but am not sure a) why I got an NR4 and a T2062 on the life insurance. How does one show this on their return?

Lastly, my understanding is that my tax obligation to canada on capital gains on the mutual funds is complete, and I just show those now on my US return. Is this accurate?



david ingram replies:
> Assuming that you filed your T1161 and T1243 and paid the tax on the deemed disposition, you are finished,.
> However, if you also filed form 1244 to defer the tax until actual sale, you would need to pay that tax now that you have sold it.
> The T5 implies that no tax was withheld. Technically, you need to file a tax return under article XI of the US Canada Tax Treaty to pay 10% tax on the interest.
> However, most of the time, you would just send the CRA a cheque for 10% and a copy of the T-5.and forget about the T1.
> Then, on the 1040, you would report the interest again, the actual mutual fund sales and have to decide if there was a taxable portion to the life insurance policy between the time you left Canda and the cashed in time. You would then claim the 10% tax on the interest on US form 1116 with your 1040.
eMail Article To a Friend View Printable Version

US/Canadian tax preparation - American in Paradise

> I am a US citizen, and recently moved to Vancouver to take a job as xxxxxxxxxxxxxxxxxx. I'm looking for someone to help me with my cross-border taxes. Do you provide tax preparation assistance on individual tax returns in the US and Canada, and if so, what are your rates?
> Thanks for your consideration.
> Sincerely,
> _________________________________________________________________-
> david ingram replies:

That's what we do. I have four people here who specialize in US / Canada Income tax situations and your situation is a typical one.

For Free, you should read the 'US/Canada Taxation' section in the second box down at and then you should read the 'Oct 95 newsletter'.

These two dissertations will tell you what you need to do as a US citizen living in Canada.

I am happy to take on your return if you decide to use us. Our pricing guideline follows in the text.
eMail Article To a Friend View Printable Version

Canadian on J-1 VISA

I am in Seattle, WA on a J-1 visa. My wife is here on a J-2 as well as my son.

I have been in Seattle since Sept, 2006. I have some income from the University of Washington. However, I occasionally work in Ontario and receive some income from Ontario. I also receive some support from my home institution in Toronto. My wife, is currently on maternity leave and have been receiving benefits.

I have been trying to complete my US return but there is a section that asks about foreign income. Do I need to report my Canadian income? My wife doesn't have any US income but because she is a Alien Resident, she still needs to fill out a US return. Does she also need to report her Canadian maternity benefits?



david ingram replies:

If you are claiming the pseudo-tax benefits of a J1 visa and saying that you are a non-resident of the US and filing a 1040NR, then only the income from the U of W is taxabble on that return and your wife's maternity and your Canadian income does not figure in to the US tax return.

However, the US income DOES add on to your Canadian return and you claim a foreign tax credit for the tax, FICA and medicare yo pay to the US. You claim it on line 431 and 433 of the Canadian return.
eMail Article To a Friend View Printable Version

Canadian gives spouse house for $2.00

> My wife and I moved out of a house in 1985, and used it as a rental property until this year, when it was sold.
> In 1992, I transferred full ownership of the rental property to my wife, for a nominal $2.
> How would she figure out the capital gains tax?
> Thank you,
david ingram replies:

As described, the capital gains is taxable to you under Section 74 of the Canadian Income Tax Act because she did not pay you a fair market value. In addition, any rental profits over the last number of years were taxable to you as described.
eMail Article To a Friend View Printable Version

TN visa for CMA - CPA - - who qualifies?


I am expecting a job offer as Accountant in the United States and want to obtain a TN visa. I have a CMA from the US Institute of Management Accountants (IMA) ? Is this the CMA they want at the border, or is it a Canadian CMA? Also, they also accept the CPA ... I have passed the CPA exams but not yet got a license.

Having passed the exam, I understand that I can obtain a CPA certificate from State of Illinois. This would cost about a few hundred dollars. Is it worthwhile doing so, does the CPA certificate add to my credibility if I already have the CMA credential from the IMA? Thanks!!!

david ingram replies:

I would expect that taking your 'original' Graduation certificates to the border with your job offer letter would get you a TN visa. However, there is no guarantee. In general, if you need a licence to practice where you are going, an Illinois certificate is not adequate if you are going to New York.

However, reciprocal arrangements would likely mean that if you got Illinois first, you could get New York next.

That happens with Appraisers for instance. Washington State recognizes a BC appraiser but California does not. Appraisers get their Washington licence for a year and then apply for reciprocity with California a year later.

Good luck!

This earlier Q & A might help as well.

> My_question_is: Applicable to both US and Canada
> Subject: Job offer to Canadian
> Expert: [email protected]
> Date: Monday March 26, 2007
> Time: 06:30 PM -0500
> I am a naturalised Canadian citizen living & working in New Brunswick. I have been offered a very exciting job in New Hampshire which would necessitiate a move to the US. My wife and children would not accompany me as we do not want to disrupt their schooling. The thought of leaving my family is very distressing to me, but the job I am offered is to good to pass up. I intend to ask my prospective employer whether it might be possible for me to work for his company, but continue to live in NB, ie, work remotely, and perhaps spend one week a month in NH. If he is agreeable, would I still require a TN Visa to do this? Am I better to be an employee of the company, or to form a company of my own and contract myself to him? Am I able to receive direct deposit of my salary from a US company to a Canadian bank? As far as income tax goes, I expect that I would pay taxes in $ Cdn and file my return with Canada Revenue.
> Alternatively, if I choose to move to NH, I will be sending the majority of my income back to Canada. Am I taxed both in the US and Canada?
> Thank you for your help.
> ________________________________________________________________
> david ingram replies:

If you were to work in Canada and only visit the US location to pick up work which you take back to Canada to perform, you would not require a visa.

However, if you were expected to perform 'any' services in the US when there, you will need a visa. A TN is good for about 63 specific occupations which are identified as follows: (this is included at in the "entering the USA" section in the second box down on the right hand side).

CHECK LIST for the TN Visa

* An applicant for admission must establish Canadian citizenship

* The applicant must be entering the United States to engage in a profession or occupation at a professional level under NAFTA

* The applicant must be in possession of an offer or contract of employment from a United States employer stating:

1) The professional activity to be engaged in

2) Purpose of entry

3) Remuneration

4) That the position is temporary in nature and will not exceed one year (although it can be renewed)

* The applicant must provide documentation of his or her educational degree or professional qualifications

* The applicant must meet all licensing requirements

* Employment need not be full-time

* Permanent residence abroad is not a prerequisite

* Maximum period of admission of a TN is one year

* TN dependants accompanying the principal TN will be admitted under the "TD" classification for the same amount of time as the principal

* A $56 U.S. fee is required ($85.00 for renewal by mail)

* TN applicants are not permitted to enter as a professional to participate in any way to circumvent a strike


The following is a partial list of some who qualify under a TN Visa. Please note that extensive experience can equal a degree in many cases. All need a Bachelor or Baccalaureate degree unless otherwise noted. In some cases, 3 or 4 years of practical work in a discipline can count for one year of a University degree. Therefore if the University BA requires 3 years, you need 9 or 12 years of work experience to qualify.

Back to Top
* Accountants - RIA or SIA or CPA or CGA or CMA or CA

** Actuaries (this is one of two classifications added since 1989)

* Agriculturalists

* Agronomists

* Animal Breeders

* Animal Scientists

* Apiculturist

* Architects - BA or state / provincial license

* Astronomers

* Biochemists

* Biologists

* Botanists

* Chemists

* Computer Systems Analyst - BA or Post-secondary Diploma or Post-secondary certificate and three years of practical experience. This does not get you to the USA, if your job is programming a computer. An Analyst might spend a day a month working on some modifications (in a testing mode for instance), but they better not be thought of as a "programmer" within the company.

Back to Top
**** Computer Software Engineer *** This is NOT here as an approved occupation. However, Jackie Bednarz (US head of the NAFTA Section 16 Working group in Washington stated specifically that if a recognized University was to offer the degree, she would consider computer software engineers under the ENGINEER classification when a recognized University granted the degree. My understanding is that SFU and McGill are now granting such degrees and that the Professional Engineers of British Columbia have recognized graduates as members of their professional society. Note that TC and TN's were being granted for this category on a sporadic basis until the INS realized that no such "official" degree existed.

Jackie Bednarz also pointed out (She was part of the original negotiating team when the original FTA (Free Trade Agreement) was being negotiated in 1985, 86, 87 and 88, there was no such thing as the INTERNET, "web masters" and "web sites". When negotiating the job titles, no thought was given to the computer revolution, other than the computer system analyst designation, which at the time meant a main frame analyst for a $1,000,000 computer.

(Thanks to Stuart Lynne and Richard Pitt) (, the CEN-TA Group was an official member of the internet as far back as 1986 and thanks to Bill Gates himself (he told me to use Microsoft Xenix as my operating system) and Radio Shack Model 16 computers, CEN-TA was using "email" between offices in Toronto, Ottawa and Vancouver as early as 1983.

As another aside, Stuart Lynne and Richard Pitt went on to found WIMSEY, the FIRST ISP in CANADA. Bill Gates became quite famous as well.

Back to Top
* Dairy Scientists

* Dentists - DDS, DMD, or state / provincial license

* Dental Technicians

* Dietitian

* Disaster Relief Insurance Claim Specialists - (claims adjuster employed by an insurance company located in the territory of a party or an independent claims adjuster) - BA and successful completion of training in the appropriate areas of insurance adjustment pertaining to disaster relief claims; or, three years experience in claims adjustment and successful completion of training in the appropriate areas of insurance adjustment pertaining to disaster relief claims

* Doctors - (see physician further on)

* Economists

* Engineers - BA or state / provincial licensing

* Entomologists

* Epidemiologists

* Forester - BA or state / provincial licensing

* Geneticists

* Geochemist

* Geologist

* Geophysicists (including Oceanographer in the United States)

* Graphic Designer - BA or post-secondary diploma and three years experience.

* Hotel Managers - BA in hotel / restaurant management; or, post-secondary diploma or post-secondary certificate in hotel / restaurant management and three years experience in hotel / restaurant management

* Horticulturist

* Industrial Designer - BA or post-secondary diploma or post-secondary certificate and three years experience

* Interior Designer - BA or post-secondary diploma or post-secondary certificate and three years experience

* Journalist BA plus three years experience - (This category is no longer valid and has been left in to explain the circumstances. As I understand it, journalists in general took it as an insult that they had to have a BA degree, because, "most, if not all," of the best known journalists do not have a BA degree.)

* Land Surveyor - BA or state / provincial licenses

* Landscape Architect

* Lawyer (including notary in the Province of Quebec) - LLB, JD, LLL, BCL degree (five years); or membership in a state or provincial bar

* Librarians - MLS or BLS (for which another BA was a prerequisite)

Back to Top
* Management Consultants - BA; or equivalent professional experience as established by statement or professional credential attesting to five years experience as a management consultant, or five years experience in a field of specialty relating to the consulting agreement. I must make it clear here. A Management Consultant is NOT a manager. The surest way to lose your management consultant renewal is to show up at the border with a business card with the title General Manager, Western Region, or Human Resources Manager, or, or, or. A management consultant could consult with the actual sales manager about sales techniques or about selling into Canada. A management consultant could be advising the actual human resources manager in hiring techniques or even suggesting that one candidate is a better fit than another one. A management consultant can do market research, gather and assemble data and write a report to give to the manager. This is likely the hardest TN visa to get but is also a very important one when it comes to serving the needs of the US company.

Note that the management consultant does NOT need a degree, just five years experience. This is the perfect job description for the person with 23 years of job experience who has never gone through the formal process of getting a university degree in the discipline.

* Mathematician (including statistician)

* Medical Laboratory Technologist (Canada) / Medical Technologist (U.S.) - BA; or post-secondary diploma or post-secondary certificate and three years experience

* Meteorologist

* Nutritionist

* Occupational Therapist - BA; or state / provincial license

* Organic Chemist

* Pharmacologist (Pharmacist) - BA; or state / provincial license

* Physician - (teaching or research only), MD or state /provincial license. To work as MD, a doctor must pass his MLE (medical licensing exam), which has three, parts written over a year. After passing, he or she would enter the U.S. under an H-1A.

* Physicist (including oceanographer in Canada)

* Physiotherapist/Physical Therapist - BA; or state /provincial license

* Plant Breeder

** Plant Pathologists (This is one of two professions added since 1989)

* Poultry Scientist

* Professional (most recognized professions)

* Psychologists - state / provincial license

* Range Conservationist

* Recreational Therapist

* Registered Nurse - state / provincial license

* Research Assistant (working in post-secondary educational institution)

Back to Top
- * Scientific Technician - Possession of: (a) theoretical knowledge of any of the disciplines: agricultural sciences, astronomy, biology, chemistry, engineering, forestry, geology, geophysics, meteorology, or physics; and (b) the ability to solve practical problems in any of those disciplines, or the ability to apply principles of any of those disciplines to basic or applied research.

* Social Worker

* Soil Scientist

* Sylviculturist

* Teacher (College, Seminary, or University) (Post Secondary level only)

* Technical Publication Writer - BA, or post-secondary diploma or post-secondary certificate, and three years experience

* Urban Planner (including geographer)

* Veterinarian

* Vocational Counselor

* Zoologist

Back to Top

This list is subject to change at any time. When talking to Dennis Olsen about updating the rules, I mentioned a nurse who had found out that nurses could go south instantly in the late 1970's. She got a job offer from a Hawaii hospital, came back to Vancouver, quit her job, sold her house, kicked out her husband, gave away the dogs and showed up at the airport to move to Hawaii, only to find out that they had closed the quota for nurses.

And then, as I was writing this exact section of the book in March, 1995, I received a call from a Doctor who had a job offer from the U.S., sold his house and Canadian practice, only to be told that he did not qualify when he showed up at the border because although a practicing family physician in Canada and fully qualified to go south with a Green Card (a resident alien immigrant visa), he did not qualify as a TN (can only teach or do research) and he did not qualify as an H-1B because he had not written an MLE. This medical licensing exam is written in three stages over a one year timetable. I guess he has to sue his immigration attorney in Los Angeles. This attorney knew he did not have his MLE, but charged him significant monies and told him he could get in now!

Remember, NONE of the foregoing confers permanent status. For permanent status, you must still stand in some sort of line. However, it seems to be true that if you are in the U.S. as a TN or as a L-1, your line moves much faster than if you start from out of the country.

If you do not have the proper degree, you will not qualify for a TN visa.

Next would be an H1B visa which takes a year to get.

As a TN, it is permissble for the employer to pay you as a 'contract employee' on a 1099 which would mean no tax, Medicare or Social Security would be deducted. That means that you would be paying both halves of Social Security so you might want to negotiate a contract that had the company pay you an extra amount which would be equal to their share of the FICA they would have to pay you as an employee.

Whatever you do, do NOT incorporate in either country.

If you are considered self-employed (paid on a 1099 basis and spending 3 out of 4 weeks in Canada), you do NOT pay tax to the US under Article 15 of the US / Canada Income Tax treaty. However, you still have to file a tax return to claim the exemption. And New Hampshire does tax self-employed people but not employees.

If they hire you as an employee, you will be paying US tax first and Canadian Tax second. On the Canadian return, you put the amount of tax and Social Security paid to the US on line 431 of Schedule 1 You put the US income on lines 104 or 135 AND line 431 in order to claim the foreign tax credit.

Also, since you are paying Canadian tax under the circumstances you describe, do NOT put your own money into a 401(K) - Canada will not recognize the decution. If they have a 401(K) program, get them to pay you their share separately so that you can buy a Canadian RRSP with the money.
eMail Article To a Friend View Printable Version

When do I become liable to file a Canadian Tax return?

I have been in the US for about 10 years, first as a student and now on work visa. During the years, have filed yearly US tax return. In the US, i have a home, families/relatives, I schooled here, and my whole life is centered here, but I am neither a US citizen nor US green card holder. In December 2005, I landed as a Canadian immigrant, stayed 4 days in Canada to get paper work done and retuned baack to US. Our plan is to return to Canada later this year, or early next year for good. I have no ties to Canada, other than just being a landed immigrant, ie. no home,friends, etc...nothing. New country to us. I applied to Canada so that when my visa is up in US, we can move to Canada to start a new life, but this came rather earlier than we expected, and Canadian government gave us until December 2005 to land, hence we did so. I work for a US subsidiary of a European company in the US, which have offices in Canada, so I can somehow work out a transfer to take care of finding a job when we eventually move to Canada. Hence, my only income is from the US (has always been). I have always filed and paid US taxes for over 10 years I have lived here. Do I have any tax liability to Canada, since I have no ties until I finally move? Thx.

david ingram replies:

As described, you have no tax liability to Canada. However, to exercise your right to live in Canada, you have to be physically present in Canada for 24 months out of the 60 months following the date you landed in Canada.

That means that you have to move to Canada by Dec 2008 and 'STAY HERE'. If you intend to do any traveling away from Canada after your move here, you have to move sooner.
eMail Article To a Friend View Printable Version

US husband sending money to Canadian Wife - is it taxable

QUESTION: I am Canadian and live and work in Canada. My husband is a US citizen and lives and works in the US (just starting immigration paperwork for him to come to Canada). I am purchasing a home and my husband will be sending me funds to contribute to the home downpayment and then will transfer money monthly for expenses. Would I have to claim this money as income on my tax returns? ---------------------------------------------------------------------------
> david ingram replies:

The money he sends to you in NOT taxable to you. However, if he gives you more than $100,000 US in one year, he will be liable for US gift tax. Goto and look at form 709 for more information on this.

good luck

The following questions will help a bit I am sure and include the necessary forms for you to import him to Canada.

QUESTION: Hi, I am a US citizen who has met and fallen in love with a
Canadian citizen. We want to get married and establish my perm resident
status in Canada. I am confused on where to begin. I have taken the
self-assessment test and scored a 72. I have a college degree (BA in
English) but do not use my degree in conjunction with my job. I have worked
as a chef and restaurant manager for 10+ years. A friend of my fiance has
offered me a job, but it is a seasonal postion at a resort. Should I apply
for a work visa? Should we get married and apply for him to sponsor me? Can
I live in Canada while we are waiting for my perm residency?
Sorry about having so many questions, the immigration process seems so
daunting to me.
thanks for your help, love the info I have gathered thus far.

david ingram replies:

Since Feb 18, 2005, it has become much easier for you to become a permanent
resident. If you get married you can live together in Canada while your
husband sponsors you. You cannot work however, without a work permit. If
you can afford to take off a few months, you can start the process by
filling in the following forms which are buried in another question.

If you let me know where you are going to live I can suggest an immigration
attorney or a member of the Canadian Society of Immigration consultants to
help you if you need help.

QUESTION: I'm a Canadian citizen if i married someone from Australia would
that grant her citizenship to Canada, and would her age make a difference?

david ingram replies:

Marrying anyone from another country does NOT grant them Canadian
Citizenship. However, if you qualify, you can sponsor your spouse to come
to Canada.

The following will give you an idea of the forms to fill out. If you need
help, we can assist in the process or recommend a local person if you are
not in the Vancouver area.

And Note that as of February 18, 2005 it has become much easier tp sponsor a
spouse from within Canada. If she is already here, you can sponsor her from

The following Q & A I answered a year ago gives you the paperwork needed to
fill out if she is still in Australia. See 14a below for the proper guide
for Australia



I am a Canadian citizen working on a TN visa for the past year as Senior
Graphic Artist for an Ad agency downtown LA.

I have met this wonderful, carrying lady that we have been dating for over 7
months now. I believe I am ready to propose and move on to a new chapter in
my life.

She is a Permanent resident living here in the US for 4 years (I think she
already applied for her citizenship and waiting). I am not interested by any
means to lose my Canadian citizenship (I am a dual citizen of Austria and
Canada) and I would love to live in Toronto where we plan to live after her
dental school (4 years) is over. But as you know I also don't want to be
rejected by TN Visa officers on my extension visa case.

What would be the best way to go about this? I only need to get a work
permit until we go back to Toronto.

Should we apply for her residency in Canada first or for mine in the US

I read all your emails and they are very interesting but my case is also
somewhat interesting to be added to your archive. J

Thank you very much
david ingram replies:

She should get her US citizenship first if she is that close. Then, you can
marry and she can sponsor you for US citizenship.

If you decide to come to Canada AFTER she gets her US citizenship, you can
sponsor her if you are married or even if you are living together as a
common law couple.

Either way, you should get your employer to change your visa to an H1
because that way you can be their intending to marry an American. With a TN
visa, it is not valid if you intend to stay in the US forever.

However, you likely have an out for your TN because you have clearly told me
that you intend to return to live in Toronto. That is certainly a temporary
intention as far as your residency in the US is concerned.

The following old question is a map to what you will have to do to import
your lady to Canada.

QUESTION: I'm a Canadian citizen and just got married. My wife is a U.S.
citizen. I would like to apply for my wife's permanent residence in Canada.
I would appreciate if you can tell me the process and how long would it

Thanks in advance
david ingram replies:

You will have to decide on whether to apply form within or without Canada.

Within would have her in Canada sooner but she can not work unless she has
a work visa. If she has a university degree, she might qualify as a
professional under Treaty NAFTA.

Basically to sponsor her, you need to fill in the following paper work. At
the moment, it is likely taking up to 22 months and is processed through
Buffalo New York

You can start the process by going to:
This is a guide for sponsoring a US citizen spouse into Canada.
Publication 3910E
This is the application form to sponsor - form IMM-1344A

This is the sponsorship agreement - Form IMM-1344B

This is the Sponsorship Evaluation Form IMM-5481

This is a statutory declaration of a common-law marriage - FORM IMM-5409

This is the Sponsor Questionnaire - Form IMM-5540

This is an authority to release information - FORM IMM-5540

This is a document Checklist - Form IMM-5491

This is where you order your official receipt

This is your actual Application for Permanent Residence - FORM IMM-0008GEN

This is your Background Declaration - FORM IMM-008_1

This is your additional family information - FORM IMM-5406

This is your spouse or conjugal partner questionnaire -= FORM IMM-5490

14. The Above PLUS a police report from your local police station (See
the guide for details) applies to those being sponsored from the UNITED
STATES. There is a separate brochure for every country. If you are reading
this and are from any other country (Australia, Brunei, Austria, Venezuela,
etc) goto

14a for other country

This is the self-assessment test for an individual to determine his or her
eligibility to immigrate to Canada without being sponsored by a spouse.

I know this will help you make your decision. If we can help you, remember,
that is what we do for a living. In particular you should goto and click on and read US/Canada taxation BEFORE you come.
eMail Article To a Friend View Printable Version

Canadian working in the US - Provincial tax returns?


Hello, I have been working in the US since June of 2006. I understand i need to produce a canadian federal tax return for the time i've worked in canada but what about provincial (quebec) returns? I have heard that it was not necessary if i was not a resident of the province as of december 31st 2006 (which was the case for me).

any truth to this? thanks in advance.

david ingram replies:

Sorry, you either pay a federal surtax or you pay a provincial tax. The directions are clear. When you leave the province / country, you put down the province of residence the day you left.

Make sure you fill in federal form T1161 if you left a house or cabin or stock / securities account behind. Penalty is up to $1,500 for being late with it even if you do not owe tax.

And don't forget - you file your US 1040 as a "dual status" payer. Check off yes in box 35A at the top of page 2 of the 1040. This also necessitates the filing of a 1040NR "DUAL STATUS STATEMENT" Read the instructions referred to on the top of page 2.

If you left an RRSP or other accounts behind, you also have to deal with the bottom two questions on Schedule B of the 1040 where the questions are posed about foreign accounts and foreign trusts. US Penalties for failing to report here are up to $500,000 plus 5 years in jail.

Do not worry about the form 3520 mentioned. You can substitute a form 8891 which takes 20 minutes instead of three or four hours.
eMail Article To a Friend View Printable Version

subdividing lots, lifetime capital gains exemption

QUESTION: We subdivided our property into 3 parcels and understand we are required to pay GST on the lots when we sell because we are considered to be developers.
My question is: if we are considered to be developers for GST purchases then are we considered to be a "business" when it comes to the new business lifetime capital gains ruling as outlined in the 2007 budget?

david ingram replies:

The answer is "no".

To be active for the lifetime exemption, it has to be an ongoing and continuous business.

The sale of one or three lots can be subject to GST but if there is no activity after and before, the gain is a capital gain, NOT TAXABLE at straight rates.

Lots of tax cases speak to this. You can find some of them at - click on Tax Guide - in the top left hand box - then click on Capital Gains.
eMail Article To a Friend View Printable Version

US Resident/Citizen Inheriting from Canada


I am Canadian citizen who also has US citizenship. I live and work in the US. I am about to inherit some money from the passing of my Cdn grandmother. I understand there is no tax implication for me in Canada. Do I have to declare anything on my US taxes for the inheritance?
david ingram replies:

If the money is held for a while before you get it (usually happens), there will be interest paid on the money. Canada will want 10% tax on the interest and you will have to report it again on schedule B of your US return (just the interest, not the inheritance). Claim the 10% tax withheld on form 1116 of you r US return.