Coming Up…
 
We have many new events planned for Spring and Summer at Trowbridge. Check out these great opportunities to touch-base with us about your tax and finance needs!

New Vancouver Office Opening

Our brand new Vancouver office (located in a building right beside the original office!) will be open for business starting the last week of June 2016. With a brand new stylish interior design and views of Coal Harbour and Grouse Mountain, you’ll be excited for a visit with our team. Call or email to book an appointment for July now! 

Former PM Mulroney Meets Trowbridge Partner in London

Trowbridge partner and frequent UK traveler, Wayne Bewick, attended a special event held in London last week at the House of Lords. The 94th Annual Meeting of the Canada-UK Chamber of Commerce was held as a prestigious lunch, boasting Former Prime Minister, the Right Honourable Brian Mulroney, as keynote speaker. 

Former PM Mulroney discussed the potential impacts to both Canada and England from the UK referendum on separation from the European Union, with an emphasis on politics and the need for commercial free trade. He also spoke of Canada’s long history of connections to the United Kingdom through trade and commerce, especially Canada’s financial contributions during World War II. 

“With a population only one-twelfth that of the U.S., Canada’s financial gifts were one quarter of the total Lend Lease aid from the U.S… more than three times greater on a per capita basis. The proportion of defense expenditures given away in terms of free supplies was higher from Canada than from any other country in the world,” he remarked. 

The Former PM raised these historical figures to note the financial generosity of Canadians, and to draw similarities between the transfer of resources during the war effort and the continued need for free trade access and flowing wealth today.  

Trowbridge thanks the Canada-UK Chamber of Commerce for having us participate in this wonderful event! 

 

US Tax Filings

Some of our Canadian filings may have finished April 30th, but we are now gearing up for our US taxpayer filings due in June.

  • Some US Extension Filings are due by June 15th. 
  • US FinCen114 filings, formerly known as FBAR need to be filed by June 30th.
  • Some corporate year-end filings are due by June 30th. 

Have questions about what documents are needed and when? Please call or email us and our associates will take care of the details for you!


 
Written by Kirill Chistyakov, edited by Arun Nagratha
 

Canadian Retirement Income… In the US

Living in the US and receiving Canadian retirement income? 
Tips on reporting this income to the IRS and related issues!

Many former Canadian residents prefer spending their retirement years in the US, especially in the Southern states with better climate and more affordable property values.  But this triggers many complexities, especially in reporting Canadian retirement income to the IRS.  This article will give some quick tips on reporting of such income to the IRS. 

First of all, it is important to determine what type of retirement income you are receiving.  Should a person be a resident of Canada, the income would be reported on various T-slips which include but are not limited to:

  • T4RSP slips – to report distributions from RRSP accounts which could be treated as annuity payments or regular account withdrawals;
  • T4A slips – various pension, retirement, annuity or other similar income;
  • T4A(P) slips – Canada Pension Plan benefits;
  • T4A(OAS) slips – Canadian old age security payments.

If you, as a resident of the US and non-resident of Canada, have properly notified the payers of these benefits of your Canadian tax non-resident status, the income would be typically reported to you on forms NR4 instead of the above slips, and Canada would also withhold the non-resident tax based on the rates agreed between Canada and US (see comments about Canada-US Double tax treaty below).

As the above list shows, there is a great variety of types of social security and pension benefits that a former resident of Canada retired in the US may be receiving.  You would refer to the type of the T-slip issued to you or to the code shown in the box 14 or 25 of form NR4 to determine the type of income paid.

It is important to understand the difference between these benefits to determine how they affect your US taxation and on which line of the US tax return they should be reported.  

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WANDERTRUST is a newsletter compiled with a digest of some timely and relevant news links or articles selected for the WANDERTRUST newsletter from thousands of sources by an independent newsletter consultant. Trowbridge Professional Corporation or any associated company does not endorse any of the advertised products and services. Opinions expressed in the articles or news links are those of the author and not of Trowbridge/associated company. Trowbridge does contribute an article written by a variety of staff members, but does not provide any tax advice or consulting in these articles. No information contained in any articles, whether sourced or provided by Trowbridge/associated companies, is to be considered tax advice, and we strongly recommend that you consult with a tax professional.