Taxation on Early Redeemed Bank GICs - Expert Income Tax Help with cross Border tax and immigration and divorce Experts and RRSP

My_question_is: Canadian-specific

question: I invested a large sum of cash with one of Canada's five large banks. These GICs were taken on 1, 2,3, and 4 year terms. In the third year I MADE A LARGE PURCHASE AND WAS REQUIRED TO REDEEM THE GICs EARLY AT THE 2.5 YEAR POINT. The bank then claimed back all of the interest paid out for the third year which was approx. $7000. They had already issued T4 tax slips for this for interest paid out in that year and refused to issue a statement of interest retraction. I contacted revenue canada about this interest clarification and they said all I needed was a declaration on bank letterhead signed off by an officer of the bank that the $7000 was in fact redeemed to them. However they now SAY IT WAS NOT A RETRACTION OF INTEREST BUT IN FACT A PENALTY FOR EARLY CONTRACTUAL REDEMPTION. Revenue Canada says that as such I would still have to pay the tax on the interest as the bank sees the process as a penalty rather than a retraction of interest. So what it amounts to is I hav

e to pay tax on money I don't have and the bank gets to write this amount off against their capital losses on our term agreement. How can this be that I have to pay income tax on money the bank has and they don't? Help please, sincerely, XXXX XXXXXXXX.

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Past taxes assessed recently - Expert Income Tax Help with cross Border tax and immigration and divorce Experts and RRSP and IRA

XXXX XXXXXXXXX wrote:

Dear David,

I had left Canada in 2001 and had been filing and paying taxes in the US all along. Approx 4 yrs ago I received a letter from the CRA stating that I owed all these taxes and penalties in Canada. I responded that I was a US resident for tax purposes as I lived anmd worked in the US where I am renting a property. However, later I was assessed as a Factual resident in 2007 since I have a significant presence (Wife,Home, Car, bank accounts etc) in Canada. Subsequently I gave them copies of my return and filled out a Canadian Tax return with a net income of zero after subtracting my US income on line 256 of the Canadian Tax return under Article IV of the US-Canada Tax treaty (however they have charged me a surtax and negated this for the 2007-2008 yrs filed). As they are asking for the taxes and penalties for 2002-2006 I have disputed this. As a result the appeals div has sent me the attached form to fill out.

Is it worth disputing this? as I have already been assessed as a factual resident. Furthermore this form asks too many personal details that go back 8 years that I have a hard time coming up with answers, should I fill it out as they have already assessed me as a factual resident recently.

Secondly Is there a statue of limitations as to how long they can wait to come after me for taxes (If I were informed earlier I would have put money towards RRSPs earlier for those years). In addition if informed earlier that i was a factual resident, I would have paid those taxes and not incurred penalties on those overdue taxes assessed recently.

Thirdly can I dispute those penalties or put money towards my RRSPs for those previous years to reduce taxes. I have paid any due taxes for 2007 and 2008 after filing those years and being charged surtaxes.

My wife is studying in Canada and is living in a Mortgaged property whom I visit periodically, (she also visits me in the US for biweekly visits after every 30 to 60 days).

We have repeatedly applied for the green card as she cannot work here yet.

Please advise

Thank you

Moved back tio Canada from USA - Expert Income Tax help on cross Border tax and immigration and divorce and RRSP and IRA and oth

XXXX XXXXXXXX wrote:

Dear David,

Just came across your site and thought I would run something by you...

I am a Canadian citizen. I was in the U.S. from August 2003 until August 2009. I earned income all that time (H1B). I have filed a U.S. tax return for my income from January to end of August 2009. I returned to Canada (North Vancouver!) and now have a T4 for income earned from August to December. I began to prepare my own return, as it seemed easy and straight-forward. I came across something that seems to indicate that I have to report my 2009 U.S. income on my Canadian return. Is that correct? What looked like a $120 (or so) refund from Ottawa now looks like I might owe $2440 or so! Can this be? Please advise. How shall I proceed?

Thanks,
XXXX

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Canadian non-resident living in Cuba - Expert Income Tax help on cross Border tax and immigration and divorce and RRSP and IRA

xxxx xxxxxxx wrote:

Below is the result of your feedback form.  It was submitted by
xxxx xxxxxxx on Sunday, February 21, 2010 at 14:32:30
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My_question_is: Applicable-to-other-jurisdiction

question: Last year I opened a CAD and US savings account at TD in Vancouver. As a non resident, do I have to pay tax on the meager interest earned? also, I would like to invest about 15,000 that I have literally sitting under my mattress (don't want to risk opening an account in Havana)- what are my options and tax implications as a Canadian living in Cuba? I travel to Vancouver every summer to visit my parents. I have a teenage son (Canadian as well) who is contemplating studying at UBC when he finishes high school, and I want to set aside funds for him. What to do other than keeping the money under the mattress?? I have an excellent job in Cuba with a foreign company that pays in hard currency, which is the source of my earnings.  Help!

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Taxes for TN Visa holder attending UBC at same time - Expert Income Tax help on cross Border tax and immigration and divorce and

XX wrote:

Below is the result of your feedback form.  It was submitted by
XX on Sunday, February 21, 2010 at 12:10:15
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My_question_is: Both

question: I work in the USA on a TN VISA ( California) , but also attended University full time in Canada in 2009. I have a home in Vancouver ( which i visit on weekends only)  but maintain a rental in the USA. Can I claim my tuition and education against my US taxes ( I have no Canadian income to declare this year).

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Tax question for new taxable resident of Canada - Expert Income Tax help on cross Border tax and immigration and divorce and RRS

xxxxxx wrote:

Below is the result of your feedback form.  It was submitted by
xxxxxx on Sunday, February 21, 2010 at 11:50:01
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My_question_is: Both

question: Hi: 
 
I moved to Canada last May from USA. I was wondering if anyone can refer me a good tax consultant who can help with the tax filing. I guess it is little complicated since I had worked in US and Canada last year.
 
Thanks

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Does an H1B qualify for the Obama Housing grant on from 5405 - Expert Income Tax help on cross Border tax and immigration

My_question_is: Both

question: Greetings Dave, 

I've been a customer for the past three years now (since I moved down to the US from Canada). I'm at the point where I'm looking into purchasing a home and was wondering what would it be more beneficial to buy a home in the US or back in Canada? I'm currently on an H1B (wife on H4) and currently waiting for my PD to be current. 

The question(s) are:

1. If buying a home in XXXXXXXXXXXXX, what tax benefits are there with this? For example, would I be able to get some of the proverbial Obama money (re: First Time Homeboy Credit - Form 5405), even though I'm on an H1B? Am I not considered a resident for tax purposes with the substantial presence test (I live all year in the United States)? Are there property taxes and mortgage interest tax credits?

2. if living in the United States, but I decide to purchase a home in Canada (for investment purposes), what are the benefits/cons of doing this? (Aside from upsetting my wife because I'd be buying a home in Canada for my parents while my wife and I live in an apartment). 

For example, would I be able to leverage interest paid on a Canadian mortgage as a tax credit in the US? Are there permanent residency issues with CRA if I do this? 

Looking forward to some high level guidance. Since I'll be doing my taxes with you again this year; if this requires a more detailed discussion then we can consult then. 

Thanks Dave and keep up the excellent work with the shows.

Dual citizen living in Canada buying home in US - Mortgage Interest as a deduction in Canada - failure to file T1135 TDF90-22.1

Come out to next Thursday's Canadian Mortgage Interest as a deduction seminar on February 11, 2010. 4 to 9 PM at the Langley events Centre at 78th Avenue and 200th Street (just south of Walnut Grove off Highway one.) The Speakers are myself on how to make a Canadian Mortgage tax deductible, Ozzie Jurock on Real Estate Trends, Own Dolan on Canadian Estates, Martin Murenbeeld, economist and Fred Snyder on written Financial Plans. Phone Fred's office at (604) 731-8900 to register free of charge. Bring your financial advisor, bank manager or mortgage broker with you. We are asking for a non-perishable donation to the Langley Food Bank for each attendee.

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XXXXXXX wrote:

Below is the result of your feedback form.  It was submitted by
XXXXXXXXX on Saturday, January 30, 2010 at 20:38:34
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My_question_is: Both

question: I am an American citizen who moved to Canada in 2003 when I married a Canadian citizen.  I received my Canadian citizenship in 2009.  I have not been employed since moving to Canada and only have unearned income.  I am thinking about buying a house in the US for my daughter to live in.  What are my tax implications if I own a home in the US but make my residence in Canada.

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MORTGAGE INTEREST AS A DEDUCTION IN CANADA - Free Seminar with Fred Snyder David Ingram Ozzie Jurock expert income tax help

Free Canadian Mortgage Interest as a deduction seminar on February 11, 2010. 5 PM at the Langley events Centre at 78th Avenue and 200th Street (just south of Walnut Grove off Highway one.) The Speakers are myself on how to make a Canadian Mortgage tax deductible, Ozzie Jurock on Real Estate Trends, Own Dolan on Canadian Estates, Martin Murenbeeld, economist and Fred Snyder on written Financial Plans. Phone Fred's office at (604) 731-8900 to register free of charge. Bring you r financial advisor, bank manager or mortgage broker with you.

xxxxxxxx wrote:

Hi David,

Based on your advice, a non Canadian Residents who lives in USA should not pay tax to the Canada Government on interest income even if it comes from a saving bank account in Canada. Is it right? Please confirm. Since I did pay on such 2008 income %20 tax to the CRA, can I claim it as a foreign tax in my 2009 US Tax return form? I paid this tax to the CRA on June 2009 after they reviewed my forms and changed the tax, on my forms, from the original $0 to %20 of the interest income.

I moved to US before the end of 2005. In 2009 I paid extra tax to the CRA after they reviewed my 2005 tax forms. Can this amount be claimed as a foreign tax in my 2009 US Tax return?

Thanks for your answers,
xxxxxxx

Canadian Citizen working in US - expert income tax help Canadian-US-Global Income tax help - david ingram expert US CANADA cross

Hi David,

I really admire your knowledge on tax matters. I have few questions regarding Canada US taxes.

As a Canadian citizen I am working on TN visa in US. For the year 2009 I worked only in US. I had a Canadian home (primary residence in Canada) which I rented for 10 months in 2009 and finally sold it in December 09. I believe I will have to file my taxes in US as Resident alien and I will also have to file Taxes in Canada.

1. Do I have to declare Canadian home rental income in US?

2. Do I have to file declare net gain for the home sale as income for 2009 in US and Canada? This was my primary residence and I believe net gain on primary residence is exempted for income tax purposes??? Also the home was purchased in 2006 while I was living in Canada. I moved to US in Nov 2008.

3. Can I claim tax benefits for mortgage interest and property taxes in US?

4. I also incurred some mortgage penalties, legal and disbursement fees on home sale. Do I have to declare it in US?

5. I paid Canadian university tuition fees and IT certification fees in 2009. Do I have to file it in both countries?

How much would it cost to file these taxes with you? Can I do it over fax and e-mail?

I would really appreciate your response.

Thanks,

XXXX XXXXX

Taxation on Early Redeemed Bank GICs - Expert Income Tax Help with cross Border tax and immigration and divorce Experts and RRSP

Past taxes assessed recently - Expert Income Tax Help with cross Border tax and immigration and divorce Experts and RRSP and IRA

Moved back tio Canada from USA - Expert Income Tax help on cross Border tax and immigration and divorce and RRSP and IRA and oth

Canadian non-resident living in Cuba - Expert Income Tax help on cross Border tax and immigration and divorce and RRSP and IRA

Taxes for TN Visa holder attending UBC at same time - Expert Income Tax help on cross Border tax and immigration and divorce and

Tax question for new taxable resident of Canada - Expert Income Tax help on cross Border tax and immigration and divorce and RRS

Does an H1B qualify for the Obama Housing grant on from 5405 - Expert Income Tax help on cross Border tax and immigration

Dual citizen living in Canada buying home in US - Mortgage Interest as a deduction in Canada - failure to file T1135 TDF90-22.1

MORTGAGE INTEREST AS A DEDUCTION IN CANADA - Free Seminar with Fred Snyder David Ingram Ozzie Jurock expert income tax help

Canadian Citizen working in US - expert income tax help Canadian-US-Global Income tax help - david ingram expert US CANADA cross

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