Hi David,
I own a condo in VAncouver which I bought for 280K
four years ago. WE just had an appraisal from the bank putting it at 450K. WE
would like to move to Nova Scotia next year, rent out our condo here, and buy a
place in NS. with an indefinite time period of being there but with the aim of
coming back in 5-10 years, keeping both places.
The plan is to rent out our condo here and buy
there to live in. We will probably use our credit line to make the downpayment
on a place in N.S. If we can claim a tax write off for the interest of an
investment I am wondering how that works if the investment will then be a place
we will be living in. Can we still claim it? Is the interest on the
investment a tax deduction on the income you earn - how does it work? IS
there any way we can still use it in this situation as it is our second
property? How do I go about learning more about the tax deductions of an
investment and acutally apply it?
Thanks very much,
-----------------------------------------------------------------------------------
david ingram replies:
I charge $400 for an individual consultation on this subject by phione or in person. However you are in luck.
Leave Sunday, August 12th open. I will be conducting a FREE three part seminar on that date at the Holiday Inn at 711 West Broadway in Vancouver..
12 noon to 2:30 PM - Mortgage Interest as a deduction including Singleton (won), Overs (won), Evans(won) and Lipson (lost) Cases.
3 PM to 5 PM - Reporting rules for US persons with Canadian Financial Accoutns and Canadian RRSP accounts.
simply put a US citizen with no US income whatsoever is supposed to file a US tax return no matter where they live in the world.
More important than that, is the fact that if the US citizen has a Canadian RRSP, it is considered a foreign trust. Assuming that there is more than
$10,000 US in all the US persons foreign accounts, failure to report the foreign trust (RRSP) to the IRS AND the Departmetn of the Ttreasury
can result in minimum fines of $10,000 (per foreign account) and maximum fines of $500,000 plus 5 years in jail plus 35% of the money in the
RRSP plus 5% for every year not reported. - O U C H !!!
5:30 to 7:30 PM US Tax returns - who has to file - aimed at Canadians who have been working in the US and Americans living in Canada or Canadians with
rental property in the US on which they are losing money. Snowbirds should attend this as well if they are in the USA more than 120 days a year.
Anyone intending to attend this seminar about mortgage interest or when a Candian has to file a return should read the November 2001 newsletter for mortgage interest and information about what Canadians have to file a US return.
If they are a Snowbird, they should read the April 1994 newsletter.
If they are a dual citizen, the Oct 1993 newsletter - These can be found at www.centa.com in the top left hand box.
Then anyone who is filing both returns should go to the second box down on the right hand side and read the US/Caanda Taxation section.
Print the above out. Highlight questionable sections and bring them along to the seminar so you remember your questions.
-----------------------------------
Those interested in the mortgage interest as a deduction concept should read Fraser Smith's, "The Smith Manoeuvre", available at any good bookstore although you may need to have them order it for you.
Phone (604) 731-8900 to register for all or any of the seminar.
david ingram replies:
I charge $400 for an individual consultation on this subject by phione or in person. However you are in luck.
Leave Sunday, August 12th open. I will be conducting a FREE three part seminar on that date at the Holiday Inn at 711 West Broadway in Vancouver..
12 noon to 2:30 PM - Mortgage Interest as a deduction including Singleton (won), Overs (won), Evans(won) and Lipson (lost) Cases.
3 PM to 5 PM - Reporting rules for US persons with Canadian Financial Accoutns and Canadian RRSP accounts.
simply put a US citizen with no US income whatsoever is supposed to file a US tax return no matter where they live in the world.
More important than that, is the fact that if the US citizen has a Canadian RRSP, it is considered a foreign trust. Assuming that there is more than
$10,000 US in all the US persons foreign accounts, failure to report the foreign trust (RRSP) to the IRS AND the Departmetn of the Ttreasury
can result in minimum fines of $10,000 (per foreign account) and maximum fines of $500,000 plus 5 years in jail plus 35% of the money in the
RRSP plus 5% for every year not reported. - O U C H !!!
5:30 to 7:30 PM US Tax returns - who has to file - aimed at Canadians who have been working in the US and Americans living in Canada or Canadians with
rental property in the US on which they are losing money. Snowbirds should attend this as well if they are in the USA more than 120 days a year.
Anyone intending to attend this seminar about mortgage interest or when a Candian has to file a return should read the November 2001 newsletter for mortgage interest and information about what Canadians have to file a US return.
If they are a Snowbird, they should read the April 1994 newsletter.
If they are a dual citizen, the Oct 1993 newsletter - These can be found at www.centa.com in the top left hand box.
Then anyone who is filing both returns should go to the second box down on the right hand side and read the US/Caanda Taxation section.
Print the above out. Highlight questionable sections and bring them along to the seminar so you remember your questions.
-----------------------------------
Those interested in the mortgage interest as a deduction concept should read Fraser Smith's, "The Smith Manoeuvre", available at any good bookstore although you may need to have them order it for you.
Phone (604) 731-8900 to register for all or any of the seminar.
---------------------------------------------------------------------------------------------------------------
It is very unlikely that blind or unexpected email to me will
be answered. I receive anywhere from 100 to 700 unsolicited emails a
day and usually answer anywhere from 2 to 20 if they are not from existing
clients. Existing clients are advised to put their 'name and PAYING
CUSTOMER' in the subject and get answered first. I also refuse to be a
slave to email and do not look at it every day and have never ever looked at it
when i am out of town.
Therefore, if an email is not answered in 24 to 36 hours, it
is lost in space. You can try and resend it but if important, you will
have to phone to make an appointment. Gillian Bryan generally accepts
appointment requests for me between 10:30 AM and 4:00 PM Monday to Friday
VANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
North Vancouver, BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325
Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office)
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
for expert help, assistance, preparation,
or consultation in connection with personal or
business affairs such as at www.centa.com. If you forward this message, this disclaimer must be
included."
David Ingram gives expert income
tax & immigration help to non-resident Americans & Canadians from
New York to California to Mexico family,
estate, income trust trusts Cross border, dual citizen - out of
country investments are all handled with competence &
authority.
Phone consultations are $400 for 15
minutes to 50 minutes (professional hour). Please note that GST is added if
product remains in Canada or is to be returned to Canada or a phone consultation
is in Canada.
This is not intended to be definitive but in
general I am quoting $800 to $2,800 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two
interest slips and you lived in one country only - no self employment or rentals
or capital gains - you did not move into or out of the country in this
year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no
rental
$1,200 would be the minimum with a move in or out
of the country. These are complicated because of the back and forth foreign tax
credits. - The IRS says a foreign tax credit takes 1 hour and 53
minutes.
$1,500 would be the minimum with a rental or two in
the country you do not live in or a rental and a business and foreign tax
credits no move in or out
$1,600 would be for two people with income from two countries
$2,800 would be all of the above and you moved in
and out of the country.
This is just a guideline for US / Canadian
returns
We will still prepare Canadian only (lives in
Canada, no US connection period) with two or three slips and no capital
gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely
$450
And an American only (lives in the US with no
Canadian income or filing period) with about the same things in the same range
with a little bit more if there is a state return.
Moving in or out of the country or part year
earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00
each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00
each.
18 RRSPs would be $900.00 - (maybe amalgamate a
couple)
Capital gains *sales) are likely $50.00 for
the first and $20.00 each after that.
Just a guideline not etched in
stone.
This from "ask an income trusts 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, 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,
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returns, etc. Rockwall, Dallas, San Antonio Houston, Denmark, Finland,
Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax
Immigration Wizard Antarctica
Rwanda Guru Consultant Specialist Section 216(4) 216(1) NR6
NR-6 NR 6 Non-Resident Real Estate tax specialist expert
preparer expatriate anti money laundering money seasoning
FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border
transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US Income
Tax Convention
David Ingram expert income tax and immigration help and preparation of US Canada Mexico non-resident and cross border returns with rental dividend wages self-employed and royalty foreign tax credits family estate trust trusts income tax convention treaty
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Niagara Falls, income trust, Income Tax Treaty Convention
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