QUESTION:

Hi,I recieved unemployment in 2006 but I did not work.I recieved a 1099G form. I was woundering if i have to file taxes because i don't have any W2? Thanks,
___________________________________________________
david ingram replies:

The 1099G form amount goes on line 19 of your 1040.

QUESTION:

Hello,

I am a US citizen, and was employed by a Canadian university as a professor 1995-2003. I participated in the pension plan there until my return to the US in 2003. When I terminated my employment in Canada, my pension was rolled over into an individual plan (Sun Life's Group Choices Plan), and I ceased contributing to it. It has gone up about 60% in value since then due to investment performance. I will retire in the US. My assumption was that this was like my current US university retirement plan (a 401A plan)and that I would pay US and/or Canadian taxes on it when I started recieving payments about 20 years from now. But, I recently noted that Sun Life calls my current current Canadian account an RRSP, and I am concerned whether I should have been reporting to the IRS in the US on it. Am I in trouble?

Thanks.
________________________________________________________
david ingram replies:

I hate to say it but if you have not been reporting it of forms 8891 and T DF 90-22.1, you are potentially liable for arbitrary fines of up to $500,000 plus 5 years in jail plus 35% of the value of the RRSP plus 5% for each year the RRSP has not been reported. See the bottom two questions on Schedule B - substitute the much more friendly form 8891 for the 3520 mentioned in the bottom question. You can print out and read the details of both forms by going to www.irs.gov and clicking on forms and publications.

In Canada, it is common to roll an employer Pension plan into a RRSP (usually a locked in plan).

In the USA, it is common to roll an employer 401(K) plans into an IRA.

You have an RRSP and must file an 8891 form each year and assuming it
and any other Canadian accounts you have exceeded $10,000 US, you were required to file form(s) T D F 90-22.1 as well. See those bottom two questions on schedule B again.

THE GOOD NEWS

Although i have seen and know of many people fined under the T D F 90-22.1 (over 1,000 clients of one tax consultant named Jerome Schneider as one example) no one has been fined yet that I know of for the 8891 forms.

AND, I have never seen anyone fined who came forward and started filing with the current year. Fill out the 8891 and send it in with a 1040X if you have already filed.

Fill in the TDF 90-22.1 and mail to Detroit.

I am a Canadian born U.S. citizen now residing back in Canada. I am about to purchase a used vehicle from my son in the states (value less than $1000) and wish to bring it back to Canada.





What are the tax consequences if any?





Thank you.





--------------------------------------------------------------------------------------------------------------


david ingram replies:





There are no income tax consequences. However, you have to be sure that you send or give a copy of the ORIGINAL state title to the US side


The following emails might help


--------------------










----- Original Message -----

From: [email protected]


To: CENTAPEDE


Sent: Saturday, June 28, 2003 6:46 AM


Subject: [CEN-TAPEDE] Importing a vehicle into Canada - Part III of - Can Idrive my US registered car in BC if I have...





This has come to us from a US Homeland Security Border Officer who is married to a Canadian and lives in Canada and perhaps has more sympathy for Canadians than others might.





If you intend to bring a US vehicle into Canada, you MUST "EXPORT" it first





ingram




Hi David,

FYI

Just reading the vehiicle import/export article .





Rremember to remind the readers that if they are importing a vehicle to Canada, they MUST first EXPORT the vehicle with US Customs or face a $500.00 penalty. They must submit a copy of the clear title and an NICB worksheet (available at the Pac Hwy crossing, Blaine,WA) 72 hrs before they plan to take the vehicle north. After 72 hrs, they must present the vehicle and the ORIGINAL title to US Customs at the actual time of export.

They must not attempt to import the vehicle to Canada before completing this process or they may be turned around and face fines upon return. Canada needs to see the USCS export stamp on the title for a lawful export/import.

This only applies if the vehicle was Titled in the US. If the BC title was retained and no US State title was issued, no problem. There is no cost for the export process, only a procedure, and it is "strongly enforced ".


Hi David,

My question is about buying a car in the US and importing it into Canada. I know you are personally experienced in this!

As a Canadian resident, do I have to pay sales tax in the states when I buy a new car, as well as GST when I import it into Canada? Most things in the states you don’t have to pay sales tax when you are out-of-state.

-------------------------------------------------

david ingram replies:

I am going to Blaine tomorrow to bring back a 73 Citroen SM and an 82 Cadillac convertible . I bought the Citroen in Sarasota, Florida with no State Sales Tax and the Cadillac in Scranton, Pennsylvania with no state sales tax. I also bought two cars in Oregon, one in California and one in Arizona with no state sales tax.

On the other hand, most people end up paying the local sales tax and applying for it when they export the car. Every state has different regulations and usually the dealer you buy from can give you the rules. If you are buying privately, there is another set of circumstances. For instance, if you buy a car in Oregon, it usually comes with a valid plate and registration and you have TEN days to register it in Oregon. If you bring it back to BC immediately, you do not ever register it in Oregon and are only concerned with paying 6% GST at the border and 7% PST when you register it in BC.

If the car is less than 15 years old, you need a BC and Federal safety inspection. If it is over 15 years old, it only needs a BC inspection.

If you buy in Pennsylvania, the dealer can give you a 30 day transport permit to get it home. However, you have to check and make sure that the permit is recognized in other states and provinces you drive through.

In one case I know of, a BC man was transporting a truck from BC to Nova Scotia and ended up with an $18,000 (really) fine in Quebec for not having the proper permit. To drive through Quebec, you have to buy the permit before you enter Quebec (at a stop in New Brunswick or Ontario, etc.) whereas most jurisdictions allow you to drive into the first truck stop you encounter in the new state or province and buy it there.

When you buy your vehicle, you can phone your BC ICBC agent and buy an ICBC insurance policy which is valid from the point of purchase until your return to BC provided you have a valid licence or permit for each geo-political jurisdiction you drive through.

To get it into Canada at the Douglas Border Crossing, you have to give them the title and bill of sale 72 hours before you intend to export the car from the US. When you buy the car, you can fax the paperwork to 1-360-332-2639 and they will be ready for you when you arrive 72 hours later - that is 72 hours of Monday to Friday and you have to be at the border between 8 AM and 3:30 PM. They are also closed on Saturdays, Sundays and US Holidays.

The following previous answers may help you a bit as well..

The following came from a reader and is worth passing on. Unfortunately, t was truncated but I


believe i answered the hours of operation in Part I. Note, that they will also accept faxed documents to get started


but you should have the original at the border itself.





------------------------------





Mr. Ingram:





Some key points were missed in your reply to the person asking about
importing their car to Canada once they are already in Canada...





I base the following on my experience of importing my US car into Ontario in
early 2002. Note: I have dual US-Canada citizenship and was returning to
Canada after many years in the US; the car was purchased in the US 16
months before I moved to Canada (and at the time of purchase I was
planning on staying in the US). I did my research BEFORE the move
(which I suggest everybody do!!!), so it went mostly uneventfully.





Issues:





1. INSURANCE





A US insurer probably only covers the vehicle for a brief period once it has
been moved to Canada. The insurer needs to be told where the car is (the
"garage address" is now Canada, not the US).





My insurance provider in the US was Geico. They DO cover vehicles in
other countries (e.g. they cater to military personnel who would move
abroad and take their car with them). But NOT Canada.





Geico had no problem insuring my car for the first thirty (30) DAYS it was in
Canada, to allow me time to get insurance coverage in Canada for the car.
They would cover it at the provincial (Ontario) minimums at no extra charge.
They sent me the inter-provincial coverage card -- the same as they send if
one is travelling to Canada just for vacation (did you know they have such
things ? they do!! *ASK* ).





The key is -- your "garage address" - where the car is "kept" - changes. It is
no longer in the US. Also, insurance minimums are MUCH higher in
Canada than most places in the US. Some Canadian provinces are "no
fault" jurisdictions. This has consequences for an insurer.





Now there ARE some insurance companies with a presence in Canada and
the US -- e.g. Allstate. But there is usually a US and Canadian "arm" to the
company and when you switch countries you must formally get a new policy
under the new country's arm.





Bottom line:
- the original poster may have NO insurance because they failed to notify
the insurer the car has moved
- their US insurance may only cover them for a brief period of time, to allow
them to get Canadian coverage





==> they really need to talk with their US insurer
==> they need to look into getting Canadian insurance





<< and I hope they haven't made similar assumptions about their health
insurance -- they could be in for a big surprise!! >>






2. US CUSTOMS





Mr. Ingram is quite correct that you have to export your car from the US
first, before importing it into Canada.





However, if you are working with nice Customs people (on both sides!) -- in
my experience, I have yet to discover a Customs person who is NOT nice --
they have some level of discretion and may be able to help resolve the
situation fairly painlessly. Or not -- it really depends on how messy the
situation actually is. But, in my experience anyway, they will at least try to
figure out a solution.





Exporting the car from the US requires that you have the US vehicle
registration and title. If the car has a lien on it, like mine did from GMAC
(remember, the car was not even 18 months old! it was still financed!), you
won't have the original title. You will have a copy of the title though. If this
is your situation, you will ALSO need a letter from the lien-holder giving you
permission to take the car out of the US (CHECK WITH CUSTOMS !). US
CUSTOMS at your chosen border crossing point will tell you EXACTLY
what they need -- give them what they need !! Remember to include a nice
cover letter explaining what you are doing and what you have enclosed.





The US Customs office needs the paperwork at least 72 hours in advance
of your crossing. Many will accept a Fed-Ex envelope containing it (gets it
there quickly + is trackable). You will have to call them to get their street
address, but you need to call and talk with them first anyway!!





Some crossings have limited hours of operation during which they will
expor





-----------------------------


This was another reader's suggestions





David et al:





From a reader of your CEN-TAPEDE list:





I went through the importation of a US -sold car into Canada experience in 2002. Comparing your experience and mine, I would suggest that each border crossing seems to be different.





I would therefore suggest to anyone who will be doing such an import that they DIRECTLY contact the border crossing they plan to use.



Both the US and the Canadian sides.





The border crossing I used (into Ontario):





- both sides were available 24 hours a day for me to do the crossing,
even holidays (the crossing itself is open 24/7 -- not all are, of course!!)





- any customs officer (on each side) could handle the paperwork --
there wasn't one specific person who could do it (hence, I believe, the
24/7 availability -- if they were open, which they always are, it could be done)





- the US side wanted paper copies of the documents, not fax; so I FedEx'd them to them well in advance of the 3 day cut-off, then called to verify


1) they had received them, and


2) there wasn't anything else they needed





- my crossing was painless, efficient, wait-free, and I would even say pleasant on both sides (no surprise in hindsight --





I have since learned it always is at the crossing I use, even when they decide that they want to search my car, which as a now-regular crosser they do do every so often)





A final note:





I had brought extra photocopies of the title with me, and on the US side the Customs officer happily asked if I wanted him to stamped them all; I said yes and he did -- he said that way all the copies have the stamp and I don't have just one to worry about not losing :-)





Plus, he said if Canada makes me give up a copy, it won't be the only copy.



Anyhow, i actually wanted him to do that, so that was good; your mileage may vary.





So, bottom line:





- CALL BOTH sides of the border crossing
- TALK to them and ask the questions you have
- FedEX is your friend -- just make sure you get the street address to send the documents to, not just the normal PO Box they use for mail
- CALL BACK and make sure they got everything they need
- VERIFY when each side of the border is open and when there will be
someone available to do the paperwork -- also check if anyone can do
it or if there is just one person who can





GOOD LUCK!!

My question is: Canadian-specific

QUESTION: I am a Canadian-born woman who acquired dual Canadian-Israeli citizenship after marrying an Israeli, also with dual citizenship, in 1996. We sold our house in Calgary (unfortunately!) and moved to Israel in 1997 to assist in the care of my husband’s elderly parents. Our intention was to return to Canada within five years but instead it has stretched to ten. The best we could manage was to spend a few weeks in Canada each year. We did not sever our ties with Canada – we have a revenue property in Edmonton, Alberta drivers licenses, Canadian bank accounts, a Canadian credit card, and both of us have close family members in various parts of Canada.
I began working for a company in Israel in 1998. On the advice of CCRA, we filed our Canadian income tax returns as residents; listing my Israel employment income as foreign income and claiming the foreign tax credit Our only Canadian income was from our Edmonton revenue property.
In 2002, in anticipation of returning to Canada that year, we purchased a condominium near family (Property A) in Northern B.C. which we intended to live in. However, circumstances with my husband’s parents in Israel forced us to postpone our plans until the present. I continued to be employed in Israel and to file our Canadian tax returns as before.

My question is:
We are now able to move permanently back to Canada in June. We have decided to sell Property A and purchase a residence on Vancouver Island. There will be a capital gains of about $76,000. Could I list Property A as my principal residence from 2002 – present? Utilities have always been in my name, and it has never been tenanted. HOWEVER: Throughout the years I have filed my tax returns as an Alberta resident, and since living in Israel have used my daughter’s residence in Edmonton (not Property A) as my postal address. What bearing would this have on claiming Property A as my principal residence? Is living in it a few weeks each year sufficient?
Appreciate so much your expert opinion.
Thanks and best regards,

____________________________________________
david ingram replies:

Property A must be your principal residence because it was never rented and I presume you lived in it or occupied it when you visited Canada. Since you filed and paid tax to Canada as a resident when you likely did not have to, you should get the benefit of that now.

Using your daughter's address as a mailing address is just smart management and should not be a problem provided you did use the house.

If you did not occupy it, you will have to pay capital gains tax. If it was rented, you will have to pay capital gains tax.

I am looking for a Canada/US tax advisor. Do you provide this service? I am looking for answers to the following questions.
>
> I'm a Canadian RN working in the US with a Green Card for the last 3 years, so I'm a tax resident of the US. I plan of surrendering my Green Card in 10 years and returning to Canada (at age 50). From a tax standpoint, am I better off investing my extra income in Traditional IRA's, Roth IRA's, buying US rental property, or purchasing a Canadian "retirement home" and renting it out for the next 10 years until I return to Canada? I currently have no debt and own a home in the US.
>
> --
> "The world is a book, and those that do not travel read only one page"
> St. Augustine
>

I'll trade you one.

I am a part of all that I have met;
Yet all experience is an arch wherethro’
Gleams that untravell’d world, whose margin fades
For ever and for ever when I move.
How dull it is to pause, to make an end,
To rust unburnish’d, not to shine in use!

Tennyson. - from Ulysses - http://home.att.net/~tennysonpoetry/uly.htm

My question is: Applicable to both US and Canada

QUESTION: Is an american charity tax receipt valid to claim on a canadian tax form? I am giving to a us charity and they are going to issue a tax receipt from the american charity.Can I use this for my charity donation?
Thank you
_________________________________________
david ingram replies:

The original answer diappeared from this email.

You can write off a onation to your old 'Alma Mater; whether in Germany, France, Indonesia, of Jamaica and it does nnot matter where the money came from.

For other charities in other countries, you can write off up to 74% of the money you have coming from that country.

So if you have $10,000 of US or New Zealand or Japanese income that you are reporting on your Canadian return, you can donate up to $7,500 as a charitable donation inthat country - $100 would be up to $75.00, etc.

In many cases, there is an equivalent Canadian Charity and you can make a donation to the Canadian Red Cross with instructions that it be sent to the American Red Cross as one example.

Good day,

You have undoubtedly been asked this question on numerous occasions. My wife works in the United States, but we reside in Canada. She recently has become a permanent resident in Canada, but has yet to receive a SIN. We know she must file a tax return in Canada (under the deemed resident statute) however since she does not earn an income in Canada, and her salary is in US$ what amounts do we fill on her Canadian income return?? Can my salary (which is less than hers) somehow be applied on her return as well?? Does she as well get a 2 month extension on her US return date in order to file her Canadian return??

Thank you for your time a nd consideration.

Best regards,
____________________________________________________

> david ingram replies:
>
> If you are commuting to work in the USA, you must file a US tax return first and then refile the same amounts in Canada. You would convert the US earnings to Canadian dollars and put the amount on lines 104 (not 130) and 433 (schedule 1) of your Canadian T1 return. You then claim the Federal tax, State tax, FICA (social security) and Medicare paid to the US as a foreign tax credit on line 431 of your Canadian return. If there is anything left over you can apply it as a provincial foreign tax credit on line 48 of provincial form 428 after filling in form T2036. (If you are in Quebec, You would use Quebec form TP-772-V to calculate and put the credit on line 409 of your TP1.
>
> She should file US form 4868 to extend her time to file the US return which is due at midnight April 17th otherwise and, of course, her Canadian in due April 30th.
>
> You know where we are if you need help.
>
> She will get a little more by going to www.centa.com and reading the US/Canada Taxation section in the second box down on the right hand side.

QUESTION:

In 2006, my mother received less than $600 (Canadian) in old age pension benefits from the Canada Revenue Agency. They did not issue her any form 1099-R (only the NR4-OAS) and I am not sure how to account for the income on her tax return (I am preparing her taxes this year). She also receives US Social Security benefits but has little other income and has no tax liability. She has not lived in Canada for 50 years or so.
_______________________________________________________
david ingram replies:

Strangely enough, the US government would not issue a NR4-OAS and the Canadian Government would never issue a 1099-R because they are both forms issued by a sovereign nation.

The NR4-OAS should be converted to US dollars and added to the amount of Social Security she received.

If her total income is low enough, none of it will be taxable.

As a guess, I would say that your mother moved to the US when she was 22 or 23 and is 72 or 73 now.

My question is: Canadian-specific

QUESTION: I am a Canadian-born woman who acquired dual Canadian-Israeli citizenship after marrying an Israeli, also with dual citizenship, in 1996. We sold our house in Calgary (unfortunately!) and moved to Israel in 1997 to assist in the care of my husband’s elderly parents. Our intention was to return to Canada within five years but instead it has stretched to ten. The best we could manage was to spend a few weeks in Canada each year. We did not sever our ties with Canada – we have a revenue property in Edmonton, Alberta drivers licenses, Canadian bank accounts, a Canadian credit card, and both of us have close family members in various parts of Canada.
I began working for a company in Israel in 1998. On the advice of CCRA, we filed our Canadian income tax returns as residents; listing my Israel employment income as foreign income and claiming the foreign tax credit Our only Canadian income was from our Edmonton revenue property.
In 2002, in anticipation of returning to Canada that year, we purchased a condominium near family (Property A) in Northern B.C. which we intended to live in. However, circumstances with my husband’s parents in Israel forced us to postpone our plans until the present. I continued to be employed in Israel and to file our Canadian tax returns as before.

My question is:
We are now able to move permanently back to Canada in June. We have decided to sell Property A and purchase a residence on Vancouver Island. There will be a capital gains of about $76,000. Could I list Property A as my principal residence from 2002 – present? Utilities have always been in my name, and it has never been tenanted. HOWEVER: Throughout the years I have filed my tax returns as an Alberta resident, and since living in Israel have used my daughter’s residence in Edmonton (not Property A) as my postal address. What bearing would this have on claiming Property A as my principal residence? Is living in it a few weeks each year sufficient?
Appreciate so much your expert opinion.
Thanks and best regards,

____________________________________________
david ingram replies:

Property A must be your principal residence because it was never rented and I presume you lived in it or occupied it when you visited Canada. Since you filed and paid tax to Canada as a resident when you likely did not have to, you should get the benefit of that now.

Using your daughter's address as a mailing address is just smart management and should not be a problem provided you did use the house.

If you did not occupy it, you will have to pay capital gains tax. If it was rented, you will have to pay capital gains tax.