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Discussion Starter · #1 · (Edited)
I emigrated from the US in 1969 and became Canadian citizen in 1976. At that time the US did not allow for dual citizenship. Some short time later I received a letter from the US (State Department?) stating that as a consequence of my acquiring Canadian status I have had my natural born US citizenship revoked. This is not my problem.

My question has to do with taxes.

  1. I have never filed for US taxes with the understanding that I did not need to.
  2. I have been retired for a number of years with no income (my wife continues to work).
  3. My late mother's house has recently been sold and the estate will be divided amongst myself and my siblings.

As a final note, I do not have the letter from the US.

Any thoughts would be appreciated.

Thank you.

hip
 

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Lost US Citizenship

I am not a specialist in tax law however, if you have not resided in US and/or worked in the US then it is improbable that you've incurred any US tax obligation.

My recommendation would be as follows in the following order:
1) search your situation exhaustively on the web using US IRS website.
2) consult the Canadian consulate for documentation of the change in your citizenship and your Canadian tax liability for any ex-Canadian inheritance.
3) consult the US consulate for documentation of the change in your citizenship and ask them for direction as to where you can find answers to your tax liabilities regarding any inheritance.
4) would your US siblings be wiling to retain a US estate lawyer to clarify your situation if your family doesn't all ready have one? Do you have funds to pay for such service?
 

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If your US citizenship was revoked, then you have no tax obligations for the US starting with the year you got your Canadian citizenship. If there is an attorney or an executor for your mother's estate, make sure they know that you are not a US Citizen. There are some quirks in the calculation of any estate tax due (federal and state) for the portion of the estate that goes to an NRA (non-resident alien) but whoever is doing the estate tax returns should be able to look into that.

You may want to check on the Canadian tax rules for transferring your share of the selling price for the house back to Canada. I don't know about Canada, but some countries want you to show a certificate from the originating country showing that the money comes from an estate and that the estate has paid all the relevant taxes before the transfer.
Cheers,
Bev
 

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Discussion Starter · #4 ·
Thank for the replies.

I had assumed I was clear of a US tax filing obligation but good to hear others of that opinion as well. One day I will need to contact an attorney and get the fine details of all this as well. As currently the IRS is reaching out through off-shore banks for American's accounts to, I suppose, reduce the national debt.

One additional point. I had thought that the US had eliminated inheritance taxes. Would that be cash, ex of real estate? Is it just a federal situation, with local and state governments still getting "their" share?

Thanks again

hip
 

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The US still has a federal inheritance tax, but the threshold amount is currently a few million dollars - so very few estates wind up being subject to the tax. At the state level it's a different story and can vary all over the place.
Cheers,
Bev
 
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