cross boundary tax advice needed

[fromEast]

Why is life so complex? This year I will have a very complex tax situation. Shortly speaking:

My wife and me are both permanent residents of Canada who worked in US on H-1. I moved to Canada early this year to settle down for our family( we also have a kid) while wife will come up to join me soon after she finish some project there.

For the year 2005, we will need to file tax return in both countries. Right now I need some advice: should we find an account in Canada or US, or both? Should I be considered Canadian resident while my wife be considered a US resident, or she is also a Canadian resident? Do we file seperately or combined?

To make things complex, I have to consider the following factors: we might have some capital gain in selling our primary residence in US(after 2 years), the mortgage interest portion and property tax is considered tax deductible in US, and we have income in US as well as Canada. What is our best option?

Thank you very much in advance.

 

[leroythelion]

Why is life so complex? This year I will have a very complex tax situation. Shortly speaking:

My wife and me are both permanent residents of Canada who worked in US on H-1. I moved to Canada early this year to settle down for our family( we also have a kid) while wife will come up to join me soon after she finish some project there.

For the year 2005, we will need to file tax return in both countries. Right now I need some advice: should we find an account in Canada or US, or both? Should I be considered Canadian resident while my wife be considered a US resident, or she is also a Canadian resident? Do we file seperately or combined?

To make things complex, I have to consider the following factors: we might have some capital gain in selling our primary residence in US(after 2 years), the mortgage interest portion and property tax is considered tax deductible in US, and we have income in US as well as Canada. What is our best option?

Thank you very much in advance.

Post your question at:

http://forums.serbinski.com/


Your situation is quite common. It gets really complicated when you are a resident of Canada and the US at the same time. This happened to me back in 1998 and I spent an entire weekend muddling through the forms. People on that forum will be able to help you get through this.

If you must hire an accountant, get one that understands cross border issues. Do NOT go to H&R Block or something similar. Mark Serbinski's firm that sponsors the forum practices accounting in both the US and Canada. I have never used him, so I don't know personally what he is like. I do know people that have used him and said he did an excellent job. He is also expesensive, very expensive. Back in 1998, he was charging $750 per return. Check out the forum first, though.

Brian