QUESTION:
Hi David,
I have an inquiry on the tax return for both US and Canada. I don't have
money and I would like to seek your professional help. I am a Canadian
citizen. My wife
is a Canadian immigrant and daugther is Canadian (both are my dependents
with H4 visa and they live with me). I own a
property in Vancouver where my parents are staying who are also my
dependents. We
occassionally go to Canada to visit my parents.
Here is my situation:
1. I worked for 2 months in Canada and the rest in US (under H1-B visa). I
have T-4 (Canada) and W2 (US).Which should be filed in Canada and in US
respectively.
I have no money to pay both tax. From the Canadian taxation perspective ,
is worldwide income applicable to me, i.e. my income from Canada and US
being taxable in Canada? If we file a joint return in US as resident, will
it help me from the outrageous taxation in Canada?
2. I have not started my green card processing yet, as I 'm waiting for
PERM.
3. I am paying mortgage and interest in Canada and renting in US.? CAn I
deduct the mortgage interest and real property tax (on my property in
Canada)from my US tax return.
4. My wife and daughter are currently outside of the country visiting my
inlaws. I believe they are required to have ITIN in replacement of SSN. Does
US
gov't allow to have the passport and Visa to be notarized outside of US? IF
so, do you know any designated lawyer or notary public (in the Philippines)
5. When I move to US, last February, the company paid for my moving expenses
and add the expenses to my gross salary. Is this taxable and tax deductible?
Thank you for your help and answer.
sincerely,
LXXXXXX
===============================
I would be glad to have this done for you.
1. I would file a departing Canadian Tax return up to the day you left
Canada.
This would require the filing of forms T1161, 1243 and 1244. AND, makes the
Vancouver house taxable for capital gains tax if it goes up in value in the
future. I gather that mom and dad are NOT paying rent because you are
supporting them.
2. understood, but
Your wife can use her time with you in the US as qualifying time for
citizenship. She should apply as soon as possible for Canadian Citizenship.
3. You can deduct the interest part of the mortgage AND the Canadian
property taxes.
4. If they are not back in time, we will file an automatic notice of
extension for you and have until Aug 15, 2005 to file the 2004 US return.
5. The moving expenses are taxable but we can deduct most of the expenses.
We can NOT deduct the Real Estate Commission if you sold another house other
than the one your parents are living in.
Last, but not least, to make your tax cheaper in the USA, we need to include
your Canadian income (and claim the Canadian taxes as a foreign tax credit)
in order to qualify to file a Joint Tax return. Otherwise you will have to
file Married Filing Separately and that has the highest US tax rate.
We can handle this by fax, email (*.pdf files only please), snail mail and
courier. If you send the paperwork by mail or courier, KEEP a COPY of
everything.
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 <http://www.600am.com/>
Local calls are taken at (604) 280-0600 and Long Distance calls (BC only)
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 <mailto:taxman at centa.com>
www.centa.com <http://www.centa.com> www.david-ingram.com
<http://www.david-ingram.com/>
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