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Investments in Canada how to report to IRS Jawahar 03-13-2008
Posted by Jawahar on March 13, 2008, 2:00 pm
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 How do I file / report income form a canadian source (mutal funds ect
- Ordinary dividends/interest < $1000) reported on a Canadian T3 form
with our US tax returns?

I am a permananent resident in the US and a Canadian Citizen


Thanks
Jawahar

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Posted by removeps-groups@yahoo.com on March 13, 2008, 7:20 pm
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> How do I file / report income form a canadian source (mutal funds ect
> - Ordinary dividends/interest < $1000) reported on a Canadian T3 form
> with our US tax returns?
>
> I am a permananent resident in the US and a Canadian Citizen

Is your Canadian mutual fund held at a Canadian bank or brokerage?
This seems to be the case as you received a T3 form, but am just
checking.

Report interest and dividends on Schedule B as usual. I'm not sure
whether you can use the average exchange rate for the year or the
exchange rate on 12/31/2007. As USD/CAD was dropping last year, the
average exchange rate might be better.

Also, I use the typical cash rate and not the interbank rate, as
that's the rate you get (it's not as favorable as the interbank rate),
but it translates to a slightly smaller dollar amount and therefore
less taxes. Search this group for posts by me, and I give the URL of
a website you can use.

At the bottom of the page it asks you if you had a foreign financial
account, and you should check yes. By June 30 you sould file the TDF
form with the department of treasury (they just need the account name,
number, approximate value range).

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by jmail7 on March 13, 2008, 11:22 pm
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> > How do I file / report income form a canadian source (mutal funds ect
> > - Ordinary dividends/interest < $1000) reported on a Canadian T3 form
> > with our US tax returns?
>
> > I am a permananent resident in the US and a Canadian Citizen

You also should look at Form 8621 as the Canadian mutual funds are
likely PFICs. You may want to make a mark-to-market election to avoid
the complex interest charge rules.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by Jawahar on March 16, 2008, 10:19 am
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On Mar 13, 11:22 pm, jma...@andrewmitchel.com wrote:
> > > How do I file / report income form a canadian source (mutal funds ect
> > > - Ordinary dividends/interest < $1000) reported on a Canadian T3 form
> > > with our US tax returns?
>
> > > I am a permananent resident in the US and a Canadian Citizen
>
> You also should look at Form 8621 as the Canadian mutual funds are
> likely PFICs.  You may want to make a mark-to-market election to avoid
> the complex interest charge rules.
>
> --
> << ------------------------------------------------------- >>
> << The foregoing was not intended or written to be used,   >>
> << nor can it used, for the purpose of avoiding penalties  >>
> << that may be imposed upon the taxpayer.                  >>
> <<                                                         >>
> <<   The Charter and the Guidelines for submitting posts   >>
> <<  to this newsgroup as well as our anti-spamming policy  >>
> <<                  are atwww.asktax.org.                 >>
> <<         Copyright (2007) - All rights reserved.         >>
> << ------------------------------------------------------- >>

Thank you for your suggestions
What I have is a T3 form and on close examination of it I see that it
is two incomes "Other Income" and "Captial gains"
Do i still use schedule B
Many Thanks
Jawahar

========================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by parrisbraeside@yahoo.ca on March 17, 2008, 7:22 am
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> On Mar 13, 11:22 pm, jma...@andrewmitchel.com wrote:
>
>
>
> > > > How do I file / report income form a canadian source (mutal funds ect
> > > > - Ordinary dividends/interest < $1000) reported on a Canadian T3 form
> > > > with our US tax returns?
>
> > > > I am a permananent resident in the US and a Canadian Citizen
>
> > You also should look at Form 8621 as the Canadian mutual funds are
> > likely PFICs. You may want to make a mark-to-market election to avoid
> > the complex interest charge rules.
>
> Thank you for your suggestions
> What I have is a T3 form and on close examination of it I see that it
> is two incomes "Other Income" and "Captial gains"
> Do i still use schedule B
> Many Thanks
> Jawahar

Capital Gains are reported on Schedule D. Other income is just that,
page one of your 1040.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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