This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
Hi - I am a US citizen and Canadian resident living in Canada (purchased a home one year ago in Canada) along with my wife and 2 children (3 and 6). I am a flight attendant working for a US airline in the US, so I earn income and work out of the Seattle base. I spend probably 75% of my year working in the US.
My taxable income last year was $9900 USD. We are renting our suite in our home in Canada at $1000/mo. And pay interest on our mortgage for our house.
Can I deduct my interest from our mortgage on the US tax form? Given my low income level, can I expect to pay a hefty tax on my canadian tax return?.
Thank you for your time.
====================================
david ingram replies:
You will file a US tax return which will be about the same as if you were living in Oregon or California instead of Seattle.
Your Canadian mortgage interest and your Canadian Property Taxes and Canadian medical payments are deductible
You will file the same US 1040 you would file if you were working in Seattle and living in Portland or San Francisco. The difference is that instead of an Oregon return, you will file a Canadian return instead of a California or Oregon return as the second return.
Your 1040 will include your US earnings and the rental income on the suite will be reported on a Schedule E. If you happen to pay tax ot Canada on the rental suite, you will claim credit on your 1040 by filing schedule 1116 as well.
What I do not know from your email is whether your wife is also an American citizen and is working in Canada.
If she is not a US citizen, you can still elect to report her income on the US return and file a joint return. You can also claim the children whether they are US citizens or not. If they are your children and US citizens, you need to get Social Security Numbers by filling in Schedule SS-5 for each of them. If your wife is not a citizen, she needs to fill in form W-7 for an ITIN - Individual Taxpayer Identification Number). If the children are not US citizens, they also need to get ITIN's by filling in form W7 so that you can claim them.
This type of return is our usual type of return and I would be glad to look after both the US and Candian portions. You should, of course, have the same person do both.
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321
New email to [email protected]
www.centa.com 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 in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
This from "ask an income tax and immigration expert" from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate problems for the United States, Canada, Mexico, Great Britain, the 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, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
Your name has been added to our email list because of an enquiry we have received, we may not answer your question but
another similar question will be as we lump them.
You may find more answers at www.centa.com
David Ingram of the CEN-TA REALTY Group
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
(604) 980-0321 - Fax 913-9123 [email protected]
www.centa.com www.david-ingram.com
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/fb60ea36/attachment.htm
---------------------- multipart/alternative attachment--
What's Related