Hi David:
A question regarding medical deductions: are optional surgeries
such as
laser eye surgery deductible?
Also, if I want to jump the two-year waiting list queue and pay
for private
medical for a shoulder rotator cuff injury, would that be
deductible? I
would go to a local private medical surgery centre. Would it be
deductible
if it was done out of country?
Thank you so much,
The Laughing Boomer
---------------------------------------
david ingram replies:
Medical expenses are dealt with quite nicely in Bulletin IT519R
at
http://www.cra-arc.gc.ca/E/pub/tp/it519r2-consolid/it519r2-consol
id-e.html#P263_55751
Eyeglasses and laser surgery are dealt with in paragraph 50 as
follows:
Eyeglasses
¶ 50. The cost of eyeglasses that qualifies as a medical expense
under paragraph 118.2(2)(j) includes the cost of both the frames
and lenses. The phrase "other devices for the treatment or
correction of a defect of vision" in paragraph 118.2(2)(j)
includes contact lenses. In all cases, a medical practitioner
(see ¶ 3 above) (oculist or ophthalmologist) or an optometrist
must prescribe the item. Laser eye surgery qualifies under
paragraph 118.2(2)(a).
If you jump the queue and pay for your own rotator cuff surgery,
that works as well. Another client just had the same thing done
at The University of Seattle's Medical School.
-------------------------------
David Ingram gives expert income tax & immigration help to
non-resident Americans & Canadians from New York to California to
Saudi Arabia to Mexico to China or Chile - Cross border, dual
citizen - out of country investments are all handled with
competence & authority.
On Sun, 7 May 2006 21:55:14 -0700 taxman at centa.com wrote:
>
> My_question_is: Canadian-specific
> Subject: CCA on rental property in Canada
> Expert: taxman at centa.com
> Date: Sunday May 07, 2006
> Time: 02:29 PM -0700
>
> QUESTION:
>
> I am a US resident Canadian and have lived in the US since
2000. Last
> year I
> got homesick and bought a condo in Ottawa which has been rented
out since
> Aug 2005. We realize now we would prefer to retire in Victoria
and I will
> sell the condo when the tenants lease runs out in July 2007. Am
I
> better off
> not to claim the CCA on the house on my 2005 CDN income tax
(rental income
> only) - I am afraid of having to pay more tax on capital gains
for
> 2007 if I
> claim the CCA now (i do not need a CCA for 2005 to bring net
income to
> zero - already in a loss without it)
>
> -----------------------------------------
> david ingram replies:
>
> You cannot claim CCA unless you have a rental profit. And you
can not
> carry
> a loss forward - - You should consider capitalizing the
interest to
> increase
> the ACB.
>
> This former Q & A might help
>
> =======================
>
> Hi, I have a rental property .. if you have more deductions
than
> profit does
> that role over to the next year ? .. thank you .. Cxxxxxxx
>
>
-----------------------------------------------------------------
-----------
> -----
> david ingram replies:
>
> In Canada, you would fill in form T776. If the bottom figure
is a loss
> (excluding Capital cost Allowance (CCA which most people call
depreciation
> in Canada) ), you would put the loss on line 126 of your T1
general and
get
> a deduction against other income.
>
> In the event that you are an American resident with a Canadian
rental
which
> is losing money, any loss can NOT be carried forward AND can
NOT (I repeat
> NOT) be carried forward. The secret is to elect to capitalize
the
interest
> under Section 21 and increase the ACB (Adjusted Coast Base) of
the
> property.
>
> In the US, you would calculate the loss on schedule E and claim
> depreciation
> on schedule 4562. Depreciation MUST be calculated with the
exception of a
> limited number of persons holding on to their property to sell
it an even
> then, only the California courts (out of six possible national
courts
> dealing with the subject) has recognized or suggested that a
person
renting
> while waiting to sell their residential house can file their
return
without
> claiming what amounts to mandatory depreciation.
>
> The good news is that if you are a non-resident of the USA
owning US
> rental
> property, you get to carry the loss over to other years unlike
Canada
where
> I remind you that a non-resident can NOT carry a loss over to
other years.
>
> 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
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.
> =========================================
>
> This from "ask an income tax and immigration expert" from
www.centa.com
> <http://www.centa.com/> or www.jurock.com
<http://www.jurock.com/> or
> www.featureweb.com <http://www.featureweb.com/> . David Ingram
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>
> 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.
>
> "Cross Border non-resident international income tax immigration
expert
> consultant preparer david ingram 600AM radio Sunday 9:00 AM
Vancouver Time
> on Fred Snyder show CKBD www.600am.com
>
>
>
> ---------------------------------------------------------------
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