This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
My question is: Applicable to both US and Canada
QUESTION: My question has multiple parts and my situation is a bit =
confusing but I am hoping you can provide some assistance.=20
A. I am looking to sort out my taxes for both the US and Canada. I am a =
Canadian and own a condo in Burnaby, which I turned into a rental =
property after I took a job in the California under a TN Visa starting =
March 2002 that ended March 2003 whereby I returned to Canada. I own =
the property with my brother but he is not on title. My brother acted as =
my agent and filled out an NR6 form. I did my 2002 US Fed and California =
state taxes but did not include the rental income on my taxes since my =
brother was my Canadian agent. (I am worried that I should have declared =
this in the US and want to fix it.) The property was not rented for =
three months during that time so I assume I can write some off those =
expenses as well if this is the case. Any suggestions?
B. I then returned to Canada March 2003 and assume I would just declare =
the income from the property and other sources on my Canadian personal =
income tax starting in April 2003. I then confused this simple plan by =
returning to the US as a visitor in June and got married to a woman from =
New York this past November. I met her while on my TN Visa. We filed =
for my permanent residency mid December and it came through this March. =
Since I knew I was staying in the US my brother filled out the NR6 forms =
for the rental property starting January 2003. I thought I could just =
do my Canadian taxes for the income on the property from April 2003 =
until December 2003 since that was when my filing for US residency =
occurred and not worry about US taxes for the property during this time. =
My only other earned income was from an RRSP, and cash payout from a =
company I previously worked for plus a shareholder loan payback which =
occurred before I returned to the US and married a US citizen. I assume =
that I would also file my US and California State taxes for the rental =
property under the NR6 (for March 2002-March 2003) for the Canadian =
rental property. But, since I am now in NY state and married, can and =
should I file joint taxes with my wife here. We did my wife's Federal =
taxes at an H&R Block where the preparer mentioned that it may be in our =
best interest to file jointly and we can amend her federal return before =
April 15th. If also assume I would do NY and California state tax as =
well as the US Federal. =20
=20
C. The 2002 and partial 2003 NR6 property taxes were paid for by my =
agent while I was back in Canada and was told (by Customs Canada) that =
I should be eligible for a refund if I fill out a Section 216 (4) before =
the end of June 2004. Also I was told that my agent needed to file a NR4 =
Statement and NR4 Summary before the end of this March for me to be =
eligible for the refund. My agent is just as confused as I am over this =
on what he needs to do at specific times. If this is the case then I =
end up paying tax in each country on the single rental property and wait =
for one of the governments to send me a refund, if I am lucky. I feel =
that I must have this wrong.
Also is it possible to have my brother claim the income from the =
property even though he is not on title since we jointly hold the =
mortgage so we can avoid this whole NR6 paperwork in the future? We did =
not put him on title to avoid the expense but it may be a better =
solution for us. One last note is that we hope to have this condo sold =
this year but it would be less than I originally paid for it so is there =
anything I should keep in mind for future tax implications.
I know this might be beyond the scope of a "free answer" and I =
appreciate your time. I originally wanted to do my taxes with a =
software package but I am concerned my situation will not fit a standard =
package and I am confused enough already. I am feeling like it may be =
in my best interest to have a professional deal with my taxes this year =
before I mess it up even more and is this something you can handle for =
me?
Thanks in advance, XXXXXX
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
david ingram replies:
a: As a resident of the USA and California, you were required to =
report the rent on your 2002 US 1040 and California 540NR. You likely =
had a rental loss and it would have reduced your California and US =
federal taxes. However, even if you made a profit, you (we) should =
amend and correct those two returns.
b: You have been in the US more than 183 days plus the days before in =
2002. You are clearly a taxable resident alien of the US for 2003 for =
income tax purposes with or without your marriage.
You should have filed a joint 1040 with your wife and a joint New York =
return with your wife. You should also file a 540NR for California. =
Your brother has four days to get his NR4 summary and supplementaries in =
or he will have a $200 or $800 fine ($800 if he missed the 2002 filing =
as well.) I guarantee that the CRA will catch up with him if he filed =
and signed an NR6 and has not filed the NR4 return. It sometimes takes =
them 3 years to catch up but they Always do and the fines are severe =
plus 25% of the gross rent with no deductions for expenses. Get them =
done NOW. He can get them done at our office if necessary. Have him =
call me at (604) 980-0321.
You cannot amend your wife's return until we know the rental income from =
your condo because it has to go on that return as well.
If you pay tax to Canada for the rental, it means that there is a =
profit. If so, you will get a credit for the tax paid to Canada on any =
tax owing to the US.
You are a non-resident of Canada for the whole year. Your brief two =
month sojourn in Canada is NOT a residential time as you describe it.
You and your wife should send me her New York and US Federal return and =
your W2 from the US and your T4RSP for the RRSP withdrawal and whatever =
other information you have as soon as possible. For the record, I would =
likely not do them until May although I would likely file a proforma =
Canadian return before April 30th.
For the US, the H & R Block person was incorrect about the April 15th =
date.There "is" a prohibition about changing from a joint return to =
separate returns after April 15th, but it is perfectly okay to change =
from separate returns to a joint return after April 15th. It will be =
cheaper and easier to fix up in May when the rush is over.
However, the NR4 has to be in by March 31st.
-------------------------------------------------------------------------=
--
Answers to this and other similar questions can be obtained free on Air =
every Sunday morning.
Starting this Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of =
Cartier Partners and I will be hosting an INFOMERCIAL but LIVE talk show =
called "ITS YOUR MONEY"
Local caller can call 604-280-0600 -=20
Those outside of the Lower Mainland will be able to listen on the =
internet at
www.600AM.com=20
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D
This from ask an income tax immigration planning and bankruptcy expert =
consultant guru or preparer 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 gambling refunds =
for the United States, Canada, Mexico, Great Britain, the United =
Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, =
Indonesia, Egypt, Antarctica, 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.
income tax wizard wizzard guru advisor advisors experts specialist =
specialists consultants taxmen taxman tax woman planner planning=20
preparer of Alaska, Alabama, Arkansas, Arizona,=20
California, Colorado, Connecticut, =20
Delaware, District of Columbia, Florida,=20
Garland, Georgia, Hawaii, Idaho, Illinois,
Indiana, Iowa, Kansas, Kentucky,=20
Louisiana, Maine, Maryland, =20
Massachusetts, Michigan, Minnesota, =20
Mississippi, Missouri, Montana, Nebraska, =20
Nevada, New Hampshire, New Jersey,=20
New Mexico,New York, North Carolina, =20
North Dakota, Ohio, Oklahoma, Oregon.=20
Paris, Rome, Sydney, Australia Hilton
Pennsylvania, Rhode Island, Rockwall,=20
South Carolina, South Dakota, Tennessee, =20
Texas, Utah, Vermont, Virginia,=20
West Virginia, Wisconsin, Wyoming,=20
British Columbia, Alberta, Saskatchewan,=20
Manitoba, Ontario, Quebec City,=20
New Brunswick, Prince Edward Island,=20
Nova Scotia, Newfoundland, Yukon and=20
Northwest and Nunavit Territories, =20
Mount Vernon, Eumenclaw, Coos Bay=20
and Dallas Houston Rockwall Garland=20
Texas Taxman and Tax Guru and wizzard=20
wizard -=20
David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321=20
[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 & =
the author and any and all non-contractual duties are expressly denied. =
All readers should obtain formal advice from a competent financial, or =
real estate planner or advisor & appropriately qualified legal =
practitioner, tax or immigration specialist in connection with personal =
or business affairs such as at www.centa.com. If you forward this =
message, this disclaimer must be included."
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/92af90f9/attachment.htm
---------------------- multipart/alternative attachment--
What's Related