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Tax Reporting
U.S. Tax Issues
RESPs
Pensions & Severance
Tax Efficient Investment Vehicles
100
A T5008 is issued when an individual sells capital property and it is used to help with the calculation of the capital gain or loss. This is the only amount that is reported on the T5008.
What is the proceeds of distribution?
100
This is the classification that the IRS has given to Canadian Based Mutual Funds that when held by U.S. persons results in negative tax consequences.
What is a Passive Foreign Investment Company or PFIC?
100
There are various types of payments that can be made from an RESP, each having different rules and tax consequences. This type of payment is taxable income to the beneficiary, made up of income and grants, and can only be made when that beneficiary is enrolled at a post-secondary institution.
What is an Educational Assistance Payment?
100
This is a form of employer sponsored defined benefit pension plan that can be set up for the benefit of one person. These are most advantageous for owner/managers or executives of incorporated business who are at least in their mid- 40’s and earn over $100,000.
What is an IPP?
100
This is the new TFSA limit for 2016
What is $5500?
200
For the purposes of utilizing the foreign tax credit, many clients and accountants mistakenly believe they need a breakdown of the foreign income held in these investments.
What are Canadian Based Mutual Funds/Compass?
200
Although beneficial from a Canadian tax perspective, it is generally recommended that U.S. persons do not hold either of these two tax efficient investment vehicles.
What are TFSA’s & RESP’s
200
This protection was not granted to RESP’s until 2014 when changes were made to the Alberta Civil Enforcement Act.
What is creditor protection?
200
When an individual chooses to take the commuted value from their pension rather than income payments, most of the value is transferred to a locked in account, but there is often a portion that is taken as taxable income. This taxable amount is referred to as.
What is the Maximum Transfer Value Excess?
200
For a TFSA, when a spouse is named as a successor, there is also the opportunity to elect this in case the successor predeceases the accountholder?
What is a beneficiary?
300
This Tax Form is required to be completed by individuals that have foreign property with a combined cost that exceeds $100,000.
What is a T1135?
300
Visitors to the U.S. can be considered U.S. residents for tax purposes if they meet this test?
What is the substantial presence test? or What is the 183-day rule?
300
This grant has been recently eliminated and any amount received previously in existing RESPs has been converted to accumulated income in the RESP plan rather than grant proceeds.
What is the Alberta Centennial Education Savings Plan (ACES)?
300
The ability to choose a commuted value from your pension is often only available if you are more than this many years from your Normal Retirement Date.
What is 10 years?
300
For those between 71 and 94 the RRIF minimums have decreased effective for the 2015 tax year, any individuals that received the higher withdrawal amount has the opportunity to re-contribute the difference to their RRIF’s by this date.
What is February 29, 2016?
400
When capital property is transferred between spouses, although there are attribution rules that apply to ensure the original owner is responsible for the tax, the transfer, by default, is done on a tax deferred basis and the cost base carries forward. This tax deferred transfer is referred to as.
What is a Section (73) rollover?
400
The world- wide net worth that would be required before a Canadian would be subject to U.S. Estate tax on their U.S. property.
What is $5,450,000
400
This is the length of time after a beneficiary has finished their enrollment at qualified post-secondary institution that you would still be able to make an Education Assistance Payment on behalf of that beneficiary?
What is 6 months?
400
When an employee receives a severance package, often referred to as a retiring allowance, they may be able to “transfer” a portion of that payment, referred to as the eligible amount, into their RRSP without the use of RRSP contribution room. This is only the case if the employee worked for the employer before this year.
What is 1996?
400
The Alberta government recently lowered the maximum withdrawal rates for LIF’s. This was to ensure that assets in the LIF will last to this age?
What is age 90?
500
Changes were announced in the 2014? Federal Budget that go into effect in 2016. These changes dictate that if the proceeds of an Estate are not distributed within this many months following the date of death, the tax rate on the estate will no longer be based on graduated rates but rather taxed at the top marginal tax rate regardless of the value of the Estate.
What is 36 months?
500
Although you may not have to pay any U.S. Estate tax, if you die holding this amount of U.S. assets your executor would still be required to file a U.S. estate tax return.
What is $60,000
500
If an RESP does not have a joint subscriber and the subscriber passes away this is who is entitled to the proceeds of the RESP.
Who is the Estate of the subscriber?
500
While most retirement income does not qualify for the pension income credit or pension income splitting until age 65, this is the age that income received directly from a pension plan qualifies.
What is at any age?
500
This tax deferred plan will be available through ATB Securities by mid-2016, it is similar to an RESP, as there are grants and bonds, but is established for the benefit of disabled beneficiaries up to age 59.
What is an RDSP?