David:
I am a 60-yr old dual citizen (US/Cdn) who has lived in Canada since
1976. I'm self-employed with no plans to retire. I would like to buy a
house in Florida and move back to the US. In 2004 I spent almost 6
months in Florida. Do I need to file as a US resident, or do I file as
usual, as a Canadian resident and then file my US returns afterwards?
Do my contributions to the Canada Pension Plan and provincial health
care system count towards US Medicare?
Also when I file my US tax returns this year, in addition to paying
social security taxes, should I put any money into a US tax shelter?
The accountant I have here is urging e to do this. Or is it better to
put that money into my Canadian RRSP?
Finally, do you know of somebody in Florida who is knowledgeable about
these things, or do you do these returns yourself?
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david ingram replies:
You are getting this answered this fast because I just happened to be
here as it came in and I liked it. I have bypassed another 200
questions that I can't get to.
What? You are going to abandon the neighbourhood association you
founded and go to Florida.
So be it.
Your contributions to CPP do NOT help you with regard to Medicare,
You need at least 28 quarters to be able to participate and 40
quarters to get the cheapest rate. Your contributions to CPP do help
you in qualifying for Social Security but they do not raise the
amount.
I presume that you are writing down in Florida and as a US citizen
working in the US, any income earned while in the US (whether paid
there or not) is NOT eligible for the $80,000+ earned income
exclusion. Look at page one of the form 2555 and you will see a spot
under Bone Fide Resident (Part One) to enter the number of days you
were in the US and "HOW MUCH" money was actually earned in the USA.
Remember, even if paid from Canada, if you did the work in the USA, it
is taxable in the USA whether you are a US citizen or not. At the same
time, the same earnings are taxable in Canada and buying a US tax
deduction is of NO value this year because Canada will not recognize
it. This year at least, only a Canadian RRSP will give you any relief.
I used to have an office (before you came to Canada) in St Pete and
later in Beverly Hills and by the Rosedale Subway in Toronto but now
only work out of my home in North Vancouver.
Sorry, I do not know of anyone in Florida who is knowledgeable about
Canada and the US.
However, you are free to send anything to us here. I have not and
never expect to meet over half of my clients because they fax, email,
snail mail and courier "copies" of their tax documents to me and we
look after them here. All together, we have over 75 years of US /
Canada tax experience in my home office now.
I hope this helps.
Answers to this and other similar questions can be obtained free on
Air every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Dundee
Wealth Management and I, David Ingram host a LIVE talk show called
"ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the
internet at
www.600AM.com
Local calls are taken at (604) 280-0600 and Long Distance calls are
taken at 1( 866) 778-0600
Callers to the show are invited to attend free seminars on financial
planning with such specialities as deductible mortgage interest. They
are held at Fred Snyder's Office at 1764 West 7th in Vancouver - (604)
731-8900 for more information.
=========================================
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration 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 Fax (604) 980-0325
Email to taxman at centa.com
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
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Be ALERT, the world needs more "lerts"
==============================
This from "ask an income tax and immigration expert" from
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deals on a daily basis with expatriate tax returns with:
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Non-Resident Real Estate tax specialist expert preparer consultant
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=========================
This from "ask an income tax and immigration expert" from
www.centa.com or www.jurock.com or www.featureweb.com. David Ingram
deals on a daily basis with expatriate tax returns with:
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,
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Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St
Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43
states with state tax returns, etc. Rockwall, Dallas, San Antonio and
Houston Texas
Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and
Immigration Tips, Income Tax and ImmigrationWizard Income Tax and
Immigration Guru Income Tax and Immigration Consultant Income Tax and
Immigration Specialist Section 216(4) 216(1) NR6 NR-6 NR 6
Non-Resident Real Estate tax specialist expert preparer consultant
expatriate anti money laundering money seasoning FINTRAC E677 E667
4789 4790 TDF-90 Reporting $10,000 cross border transactions
=========================
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