David Ingram's Archives
Question: Thursday, September 09, 2010
I am a Canadian that currently lives in San Francisco. I am considering purchasing a home in Edmonton so that I can spend half of the year closer to my family. I realize that this is going to make my life much more complicated and would like to educate myself on the tax implications and logistics. Would I be able to speak with you sometime this week?
Question: Tuesday, September 07, 2010
My question is relating to the business setup to invest in buy-and-hold multifamily properties in US. Is there any problems with a setup where two Canadians (spouses) own a LLC to hold properties? How will the income be taxed? What is the optimal setup for this situation?
Question: Wednesday, September 01, 2010
I bought a one acre piece of property in 2002 in the Okanagan Valley and planned to build my dream home when I retired in 2008. After we retired to the Okanagan in 2008 we realized that we could really not afford to build. We sold the lot in 2010 for a capital gain. Can I claim the property taxes as a deduction or add them on to the adjusted cost base?
Question: Monday, August 30, 2010
My son bought a presale in 07 and took possession over a year ago. He is thinking to move in with his girlfriend and to rent his condo out.If he goes to sell the condo in 2 or 3 yrs will he have to pay capital gains? Is there a way to get around it?
Question: Monday, August 23, 2010
We are looking at investing in a couple of properties in the US, likely in Vegas or Phoenix. These would be strictly rental properties as we would never plan on vacationing in them. Can you please explain to me the tax implications and rates for Canadians investing in US properties? Is it beneficial to buy them through a corporation or to set up a US corporation? Or is there another structure we should be looking at?
Question: Wednesday, August 18, 2010
My husband and I are Canadian citizens, residing in Ontario. We bought a condo in the U.S in Oct 09 and took a mortgage out against our property in Canada to pay cash for the condo in the U.S., as the U.S. banks had mortgage restrictions against condos at that time. This property is a rental property and generates US rental income. However, since Oct 09 U.S. banks have lifted mortgage restrictions on condos – is it more beneficial from a tax standpoint to have interest on a U.S. mortgage which can be claimed on a U.S. tax return or to stay with the Cdn mortgage and claim it on a Cdn tax return, if that is possible?
Question: Wednesday, June 09, 2010
I am a dual citizen (Canada + US). I am working as an expat in Canada (I work for a US company). I have been in Canada 2 years after several years posted in Holland and 15 years in US. I want to buy a house in Canada - perhaps retire here (not sure). I will likely have an assignment in US before retiring. Question: Is it a mistake to buy a house in Canada at this time?
Question: Wednesday, May 26, 2010
I am a Canadian who owns an Arizona rental property. I am filing a federal 1040nr and a state 140 form for Arizona tax. Will I receive a notice of assessment, or equivalent type of form from the US government? Will this notice indicate the rental loss I have to carry forward for the next year?
Question: Thursday, May 20, 2010
I am confused on how the CRA determines residency. My husband re-located to the USA 10 years ago. I have an apartment that I still own in only my name. I did not move permanently to the states with my husband. I stayed in Canada to help my mother who is ill. I was living in Canada with my mother and rented my apartment out. I went back and forth between my family in the USA and my mother in Canada over the last 10 years. I was in Canada more than the USA. I did not work. In 2007 I had my accountant file my taxes in Canada for the years 1999-2000 even though I had no income. I get a letter from the CRA in Jan 2010 that I owe 4,000. I contacted my accountant right away, he did not know anything about this. I told him when I call the CRA they told me they contacted my accountant's offic in 2007 and advised another accountant in the office that I had no taxes due from the returns sent in for those years but that due to the accountant filing the 216 return l ate for the years 1999-2005. I owed non-resident tax arrears and that although they reversed any taxes due,as my apartment ran at a loss every year. I owed interest on the money that I could have owed?? No one contacted me, the CRA also said they had returned mail from me...weird because I have gotten every other letter to date, including all my returns from those years filed with a 'nil' amount due. My accountant suggested I write the CRA and ask to forgive this amount as there was never any taxes due in the first place. I am not sure what the outcome will be. I argued my residency point with the CRA a few years ago and they wrote me a letter stating they are now considering me a resident from 1999 - 2005? I had lived in my apartment in 2005. I am living in my apartment now and due to all my renters, am having to basically gut it and plan to sell it. Where do I fit in with capital gains. I believe I am and have always been a resident of Canada. I am told I will have to pay the 50% of the difference from when I bought in 1999 to when I sell in 2010 and then 25% cap gains tax...is this right! Sorry for blabbing on and on, with my husband's business closing in the US and having to start over again at our age ..it is frustrating to have to give our hard working nest egg to the government. Anyway, I hope I get picked by your experts to know where I stand with the CRA.
Question: Thursday, May 06, 2010
If children inherit the sole residence of a parent I understand there are no taxes as the value at death goes into the estate. My question is does the house have to be valued after the death and by whom? And if the house is sold in two years for a profit is there a capital gains tax on the sale if it goes higher than the assessed value?