CANADA holiday home in Montana -

Sun, 19 Oct 2008 03:22:35 +0700

We are thinking of purchasing a home in Montana and only live in it under 6 mo. When we sell it, (the cost is $350,000.00) will we have to pay some kind of tax?

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david ingram replies:

If it goes up in value, you will have to pay both Montana and the US federal government a non-resident capital gains tax.

However, you will also have to report it on your Canadian return and most, if not all of the US taxes will be deducted on your Canadian return as a foreign tax credit on forms T2209 and T2036.

I have no time for a new answer and this is the only one I intend to answer today of over 50 received.

These older answers should help.

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CANADA Quote request/preparation of US and Canada return tax return -

Sun, 19 Oct 2008 03:15:50 +0700

Hi!I was searching on the Internet and came across your site and I found very useful information.I was wondering what is the best way to obtain a quote from you for preparation of US and Canada personal income tax return.I am a US citizen and a Canadian permanent resident. I have the following:1. wages (from Canada)2. interest (from Canada and US - bank interest as well as money market funds).3. dividends (from US companies)4. capital gains/losses 5. one Canadian RRSP 6. one Canadian RPP7. two US IRAs.I don't have any rental property nor any business. I file my own TD 90-2.11.Please let me know. Thanks in advance!

david ingram replies:we quote $900 to $3,000

I would guess about $1,200 with income from both countries and foreign tax credits, etc.

If you have children, you likely have a US refund coming which most people are missing for some reason.

The fee would be deductible on your Canadian return and save you ...

tax on US stock in Canadian RRSP - 8891 - TDF 90-22.1 -

Sun, 19 Oct 2008 03:10:05 +0700

Since the CRA lifted the 30% limit of foreign assets in RRSP, I opened an account with a Canadian Broker and have created an all ETF portfolio with US stocks in my RRSP. All my high dividend paying Canadian ETFs are in non-RRSP account. My question is related to taxation in such scenario. Do I report my dividend and interest incomes from my All USD Stocks in RRSP accounts to US and pay tax there and claim foreign tax credit in Canada (because US doesn't approve of our RRSPs as non-taxable accounts in US)? I am asking because since it will be growing tax-free in RRSP I won't be reporting any dividend, interest or capital gains income in Canada, and hence won't be paying any tax in Canada on that at all.I do file 1040NR every year, as I do own a rental property in US (in Texas) so need to file US taxes anyways. 2008 will be the first year when there will be any US stocks involved in my tax returns. How do the new rules regarding holding USD in RRSP have any effect in taxes in both ...

US inheritance for Canadian resident 1041 Estate Trust Return - taking money across the border E677 E667 FINTRAC 104 or 105 -

Sun, 19 Oct 2008 03:07:59 +0700

QUESTION:

I am Canadian and have inherited money from my Aunt who lived in the U.S. It is all in U.S. CD's and through a trust of which I am now the sole trustee. The trust now has it's own U.S. tax number and I was told I would have to pay taxes on the interest only. When I cash them as they come due I would like to transfer the money to my Canadian Bank. Would I be taxed on the money transferred here as well?

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david ingram replies:

You will need to file US form 1041 for the Income from the Trust

Find the form at: http://www.irs.gov/pub/irs-pdf/f1041.pdf

Find the 52 pages of instructions for the form at : http://www.irs.gov/pub/irs-pdf/i1041.pdf
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CANADA Mother and son own home together - Gift - Will - Estate Tax Gift Tax -

Sun, 19 Oct 2008 03:07:14 +0700

QUESTION:

My mother and brother jointly purchased a home together.

This is the primary residence for both of them.

There is no mortgage, the title is free and clear and is in both their names.

She has willed her share of the property to him upon her death.

Would her share be subject to estate tax?

Can she transfer the property to his name while she is still living and are there any repercussions?

Thanks.

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david ingram replies:

You do not say what country you are in - I will try and answer for both -

CANADA

If it is in Canada, there is NO estate or gift tax and there would not be any repercussions I can think of other than that another child may challenge the will if they feel your brother has had an unfair in...

CANADA U.S. immigration Sponsoring a Spouse - , client of David Ingram -

Sun, 19 Oct 2008 03:06:17 +0700

This is / was the only one answered today - you might want to save it if you are considering moving to the USA, have friend, etc, etc., etc.

Hello David,

We are writing to you because we are considering moving back to the U.S.

We are a family of four. My husband, xxxxxxxs a Canadian citizen by birth; I am a U.S. citizen by birth, and have been a permanent resident of Canada since 2005. We got married in 2000. We have 2 daughters -xxxx na (born in 2003 in the USA - she is a U.S. passport holder), and xxxxxxxxxxxx (born 2006, in Canada and a Canadian passport holder).

We would like to move to the ...

Cost to prepare 1040NR -

Sun, 19 Oct 2008 03:05:37 +0700

Dear David,

We inherited a piece of vacant land in US. A small part of the land was acquired in 2007 by the State highway authority for road widening. We have to file 1040NR as there is capital gains from such deemed disposition. There is also rent income from a billboard on the land. We are Canadian citizens and residents and have no other income in US.

We are about to use H&R Block in Bellingham, but we come across your interesting website. Kindly advise what is your fee to help us file 1040NR.

Thank you.

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CANADA Does Canadian need a Waiver to get off Cruise ship in the USA -

Sun, 19 Oct 2008 03:05:01 +0700

QUESTION: My husband is a Canadian Citizen and would like to know if he has a criminal

record could he get a passport. If so then if he goes on a cruise ship from Vancouver could he

get on and stay on the ship. We will be stopping and boarding at some United States ports.

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david ingram replies:

It depends on the charge and the conviction and I am NOT an expert here.

He can go to any international airport or Train Station that has a US preclearance office or any US consulate or you can write to any US Consulate to obtain a copy of a US Visa Waiver package.

You can also to to any land US POE (Port of Entry) and ask fro a package. If you do this, it is better to park on the Canadian Side and walk to the US office and ask for the package.

You can find a list of all US Embassies, Consulates and Diplomatic Mis...

capital gains in -

Sun, 19 Oct 2008 03:04:17 +0700

QUESTION:I have traded my large acreage for 4 homes.the homes are new and I will not be living in them or renting them out they will be listed for sale..I have a GST # personally so I will not have to pay GST on them.How dothe sales affect my capital gains exemption.

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david ingram replies:

There is no relation to your question and any capital gains exemption. There is a $750,000 capital gains exemption for someone selling a family farm and for those selling the shares of their Canadian Controlled Private corporation (corp can be ten days old if the business existed for at least two years before the date of the sale). However, as described, that does not apply to your situation.

If you have bought them with a GST number, they will not be treated as capital gains. You are in business with a GST number and any profit will usually be treated as straight income ...