Category Archives: Issues regarding US persons abroad

 
Beautiful Souls is the main title of a new book that I’ve just finished reading. The subtitle lets you know more of what the book is about: Saying No, Breaking Ranks, and Heeding the Voice of Conscience in Dark Times.

Continue reading →

Interesting page of at MD Physician Services Funds on their compliance with FATCA. Indicate “current” position is to comply given the devastating financial consequences of not doing so however, they admit to significant client pushback on the issue. Currently discussing the issue through Tony Clement (head of Treasury Board). Given the somewhat cooperative nature of the organization they may very well be in “play”.

http://mdm.ca/news/2012/fatca.asp

http://mdm.ca/news/2012/pre-budget-consultation.asp

Further info: MD Physician services is actually controlled by the Canadian Medical Association which is on record as opposing FATCA although for now their financial services subsidiary says they are going to comply. I personal think they should have a vote at their annual meeting.

I have noticed that the World Council of Credit Unions is getting close(as in the next 24 hours) for submitting their comments on FATCA. I linked below to their own RFQ that they sent to their member Federations(such as Credit Union Central of Canada)around the worldwide that was updated as recently as yesterday. A couple of notable issues. They STILL seem to be very concerned about the remittance issue with non compliant institutions. I thought Western Union and others lobbied to get this taken out of the regs.

http://www.woccu.org/functions/view_document.php?id=WOCCU_Long_Summary_of_IRS_FATCA_Proposed_Rules_4-13-2012

In trying to do my 2010 taxes I realize that it was absolutely the right choice for me to relinquish my United States citizenship.  A significant percentage of my income is “unearned” income.  I’ve tried to come up with a zero return based on my Canadian taxes paid (Foreign Tax Credit) but the Form 116 is hopelessly complicated and I cannot do it myself.  The year 2010 was perhaps my first really good year as an investor, and so I’ve never had to have a Form 116 done for me, since my US income tax was always zero based on the FEIE and the personal exemptions.  I have decided that it is actually impossible to be an investor of any kind as a United States person living in a foreign jurisdiction, even a high tax region like Canada.  Here are some of my reflexions in trying to do my 2010 taxes: Continue reading →

I suppose no one should be surprised but this story of the US Border Patrol is enough to infuriate. Harrassment, pure and simple.

In advance of the awarding of the annual $25,000 Shaughnessy Cohen Prize for Political Writing, tonight at the Politics and the Pen Gala in Ottawa, Huffington Post Canada will be running excerpts from the five finalists.  Jacques Poitras‘ book is about “the first boundary between Canada and the U.S., [which] was drawn between Maine and New Brunswick and it has served as a microcosm for relations between the two nations ever since. For centuries, friends, lovers, and smugglers reached across the line to one another, but now, post 9/11, political and security concerns have begun to isolate friendly neighbours from one another. Colourful community eccentricities — driveways that straddle an international border — have been transformed by new restrictions.”

FOR A MILE and a half, Russell Road follows the border almost perfectly: the eastern shoulder of the road is in Canada and the western shoulder is in the United States. This did not pose particular challenges to the residents of the road until January of 2003. Marion Pedersen was driving to the large white farmhouse she had shared with her husband Nickolaj for 53 years, the only home on the Canadian side of the road, when she was stopped by the U.S. Border Patrol right in front of her driveway. Continue reading.

Author’s note:  While I was able to get TaxAct to work for me for the 2011 taxes, 2010 is another story.  I think Tax Act probably works fine as long as the taxpayer doesn’t have too much unearned income.

My new Canadian accountant has declined to help me create self-prepared tax return.  I found that if you go to this IRS site, there was a number of free software programs. I chose TaxAct, because it included the following features:

• Adjusted Gross Income: $57,000 or less, and
• Age: between 19 and 55, and
• Live in any state or U.S. Citizens and resident aliens with foreign addresses

Continue reading →

https://twitter.com/#!/GreenbackTax/status/195117530128465921

I request that you watch the  video described in the above tweet from Greenback Expat Tax Services. Makes me wonder if U.S. citizens abroad have more reason to fear the “cross border professionals” than the IRS. Would be very interested in your comments.

They have posted the same video on YouTube:

If you agree with me, the next question is: Continue reading →