This is a multi-part message in MIME format. ---------------------- multipart/alternative attachment Hi David; I was wondering what happens tax-wise if a Canadian citizen on business or pleasure in the U.S. wins a substantial lottery cash prize. Would the U.S. / Canada tax treaty allow for recovery of the U.S. taxes that would be deducted from the winnings?? J XXXXX ======================== david ingram replies: If a Canadian wins a lottery or jackpot or anything over $1,200 at a gambling table or bingo, the payer has to deduct 30% non-resident withholding tax. The treaty allows you to file a return and claim a refund. If you bought one ticket and won $30,000 or $1,000,000, they would simply deduct 30% and that is that. ON the other hand, if you are a regular gambler, buy thousands of dollars worth of lottery tickets, etc., you can claim a full or partial refund. To claim the refund "all winnings for the year" have to be calculated and all losses for the year have to be calculated. Therefore, if you won $30,000 at this particular time and had won another $10,000 in several smaller amounts (under $1,200 so there is no paperwork) you would file a return and report $40,000. You would then claim your gambling losses. If your losses were $20,000 and you were still $20,000 ahead, you would leave $6,000 of tax (30% of $20,000) behind and get a refund of $3,000. If your losses were $30,000, you would leave $3,000 behind and get a $6,000 refund. Hope this helps david ingram - [email protected] 108-100 Park Royal South West Vancouver, BC, CANADA, V7T 1A2 (604) 913-9133 - (604) 913-9123 www.centa.com Cell is (604) 657-8451 (10 AM to 10 PM seven days a week) US/Canada Real Estate Taxation Specialists US / CANADA / MEXICO Working Visa and Income Tax Specialists 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 in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included." Be ALERT, the world needs more "lerts" --- Outgoing mail is certified Virus Free. Checked by AVG anti-virus system (http://www.grisoft.com). Version: 6.0.507 / Virus Database: 304 - Release Date: 8/4/03 ---------------------- multipart/alternative attachment An HTML attachment was scrubbed... URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/1cbd0aa2/attachment.htm ---------------------- multipart/alternative attachment--
