Anybody here know about U.S./Canadian tax laws?

[Table 5]

I have a few dry questions that i need to find out about, but don't really have an accountant at the moment, so hopefully some smart people on this forum could be of help.

1. I would like to transfer some money from my Canadian bank, money which was initially given to me by a family member as a gift. Is this something that will be taxed in the US if i bring it into the country? Or would the relative be the one taxed in Canada?

2. I am considering buying some property in NY state...would I have to pay more property taxes because I am not an American citizen (I am a resident for tax purposes, but apaprently not a permanent resident). Remember, I live in the US.

3. Is there an inheritance tax in the US?

[MoneyGuy]

Yes, there is an inheritance tax in the States. As for the other two, I think I know but won't say unless I'm pretty certain.

[Displaced Flames fan]

I'm pretty sure your property tax rate will be the same as if you were a citizen.

[Mike F]

When it comes to money and taxes, my advice it to bite the bullet and talk to a US accounant or tax lawyer -- I don't know about accountants, but you should be able to find a lawyer to give you a free consultation. You don't want to get cught being reassessed in a couple of years to find you owe a bunch of back taxes plus interest after you've spent the money.

(It's been a while since my international tax course, so take the following with a grain of salt!!)

Regarding your gift, in both the US and Canada, you're taxed on all of your income in your jurisdiction of residence no matter where in the world it is earned. However, in countries that have tax treaties, such as Canada and the US, you're essentially excused from taxes by your residential government for income earned in the other jurisdiction, but usually based on the policy that it will be taxed by the jurisdiction where it is earned.

In the US, unlike Canada, I'm pretty sure you're taxed on money received as a gift, so under the principle of you being taxed on all of your income in your jurisdiction of residence, you'd technically owe taxes on that gift from your parents to the US gov't. Is it exempted by the treaty because the gift occured in Canada even though it's not taxed in Canada? I'm not sure. I'd definitely want to find out if I were you.

Edit: I just found the following on an IRS site:

If you gave any one person gifts in 2007 that are valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.

So that should reassure you about any gift taxes, but does re-enforce the fact that Tax professionals really are he only ones to take advice from!!!

[bigtmac19]

Most of the larger CA firms in Canada have someone in their office who specializes in US tax, so you could just call one your local CA firms for help.

[nfotiu]

Like everyone else, I think the question is too complicated to answer here. Was the money given to you while you were an American resident or Canadian resident? I really doubt you'd owe tax on it at a federal level. No idea about state level though.

Some states have property tax laws that hurt non-US permanent residents/citizens. For example, I know Florida has a law where citizens are protected from more than a certain percentage increase in property taxes due to increased assessments, but non residents don't get that protection. It really screwed some non-residents when property values went through the roof a few years back. Not a problem now I guess. There is a chance other states could have similar laws that may hurt you. It is worth looking into.

[Locke]

Originally Posted by Table 5

I have a few dry questions that i need to find out about, but don't really have an accountant at the moment, so hopefully some smart people on this forum could be of help.

1. I would like to transfer some money from my Canadian bank, money which was initially given to me by a family member as a gift. Is this something that will be taxed in the US if i bring it into the country? Or would the relative be the one taxed in Canada?

There is no Gift tax in Canada anymore, but there is in the States. It depends on where the money came from and went to.

2. I am considering buying some property in NY state...would I have to pay more property taxes because I am not an American citizen (I am a resident for tax purposes, but apaprently not a permanent resident). Remember, I live in the US.

Property taxes are property taxes, country of residence isnt usually a determining factor.

3. Is there an inheritance tax in the US?
Yes.

Hope that helps a little.

[MoneyGuy]

Actually, in the States residency can be an issue that affects property taxes. In California and Florida, for example, non-residents can pay up to four to five times what residents pay. I don't kinow about N.Y.

[Table 5]

Thanks for all the help guys, I really appreciate it. It's helped clear up some issues, although I definitely still have to go to a registered accountant to confirm everything of course.

[troutman]

Wesley Snipes should have came here for advice too.

[burn_this_city]

Originally Posted by troutman

Wesley Snipes should have came here for advice too.

But he's a national treasure. He shouldnt be forced to pay anything.