US and Canada New Rental Property - Help help Help - Canadian-US-Global Income tax help - david ingram expert cross border non

Hello David and Peter
 

Happy New Year. I had my US and Canadian taxes for 2008 done by you and would like to have my 2009 taxes done also by you.
 
During 2009 I finally got married and recently started the green cards process. The following I believe can give you an idea of my current situation:
 
My gross income was US$54,000 as a teacher.
My husband's gross income was around US106,000 (about $3,000 is additional income from his salary).
He is paying a mortgage in Houston.
My apartment in XXXXXXXXX is now a rental (I hired a property management company).
 
My husband is under the impression that we should do separate filling.
 
Please advise what documents do you need besides our W-2 receipts and the property management company statement.
 
I don't get any income from Canada.
 
Also, please confirm your fees since I have an idea from your website.
 
On a last note, once you see all the documents I would like to ask you in regards to my rental property in Canada.
 
Thank you and look forward to hearing from you soon,
 
XXXXX XXXXXXXXX
---------------------------------------



david ingram replies:


Well I can only give you my congratulations.

If the property is rented, I hope that you had the NR-6 form filled out and the Property manager is filing the proper NR-4 forms,

see NR-6 at:      http://www.cra-arc.gc.ca/E/pbg/tf/nr6/nr6-06e.pdf

see NR-4 at:  http://www.cra-arc.gc.ca/E/pub/tg/t4061/t4061-e.html

and:    http://www.cra-arc.gc.ca/E/pbg/tf/nr4seg/nr4seg-fill-08b.pdf

and:  http://www.cra-arc.gc.ca/E/pbg/tf/nr4/nr4flat-fill-09b.pdf

Your husband's suggestion that you do separate returns is a reasonable idea when you have your out of country income.  It makes it easier to separate out foreign tax credits, etc.  However IT WILL COST THE FAMILY ABOUT $700 MORE TAX AS IN THE FOLLOWING:.

Federal Taxes only

2009 $104,000 tax as MFS is 20,641
2009 $ 54,000 tax as MFS is    7,356
  total tax is                              27,997

as Married filing jointly it is        27,268 or about $700 less tax.  -  This is basic without counting the rental house or any IRA or 401(K) or other things you may have done.

hope this helps

david

The Price List follows:

You will likely be in the same range as your 2008 return which was $1,230 as a departing Canadian including GST on the Canadian part

This year you have a new rental so it might be $200 extra to set the rental up for both countries.  Not more than 1400 plus GST.


SUGGESTED PRICE GUIDELINES - April 8, 2008
 
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) expert  US Canada Canadian American  Mexican Income Tax  service help.
pert  US Canada Canadian American  Mexican Income Tax  service and help.
David Ingram gives expert income tax service & 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.
 
Phone consultations are $450 for 15 minutes to 50 minutes (professional hour). Please note that GST is added if product remains in Canada or is to be returned to Canada or a phone consultation is in Canada. ($472.50 with GST for in person or if you are on the telephone in Canada) expert  US Canada Canadian American  Mexican Income Tax  service and help.
This is not intended to be definitive but in general I am quoting $900 to $3,000 for a dual country tax return.

$900 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only (but were filing both countries) - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
 
$1,200 would be the same with one rental
 
$1,300 would be the same with one business no rental
 
$1,300 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.
 
$1,600 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

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

$3,000 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 $200.00 up. However, if you have a stack of 1099, or T3 or T4A or T5 or K1 reporting forms, expect to pay an average of $10.00 each with up to $50.00 for a K1 or T5013 or T5008 or T101 --- Income trusts with amounts in box 42 are an even larger problem and will be more expensive. - i.e. 20 information slips will be at least $350.00
 
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 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 $900 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.

Catch - up returns for the US where we use the Canadian 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 of rental houses, self employment, etc. Note that these returns tend to be informational rather than taxable.  In fact, if there are children involved, we usually get refunds of $1,000 per child per year for 3 years.  We have done several catch-ups where the client has received as much as $6,000 back for an $1,800 bill and one recently with 6 children is resulting in over $12,000 refund. 

Email and Faxed information is convenient for the sender but very time consuming and hard to keep track of when they come in multiple files.  As of May 1, 2008, we will charge or be charging a surcharge for information that comes in more than two files.  It can take us a valuable hour or more  to try and put together the file when someone sends 10 emails or 15 attachments, etc. We had one return with over 50 faxes and emails for instance. 
This is a guideline not etched in stone.  If you do your own TDF-90 forms, it is to your advantage. However, if we put them in the first year, the computer carries them forward beautifully.

--IRS Circular 230 Disclosure:  To ensure compliance with requirements imposed by the IRS, please be advised that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used or relied upon, and cannot be used or relied upon, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.--

-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 or http://www.david-ingram.com/staticpages/index.php/GaryGauvin.  If you forward this message, this disclaimer must be included." -

What's Related

Story Options

Trackback

Trackback URL for this entry: http://www.centa.com/trackback.php/2010010512330899

No trackback comments for this entry.

0 comments

?

RSS RSS/Syndication Feed

Monday 06-Dec


Sunday 05-Dec


Friday 15-Oct


Wednesday 15-Sep


Tuesday 14-Sep