Form W-8BEN/W-8BEN-E and W-9

  Why and when to file Form W-8BEN Purpose The W-8BEN form is a Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individual). This form is required to be completed and submitted when receiving payments as a non-U.S. person from U.S. sources.  Generally, 30% tax is withheld from certain … Continue reading Form W-8BEN/W-8BEN-E and W-9

Canadians Owning a Vacation Property in the US

This article focuses on the tax implications when a Canadian gets rid of a vacation property in the US. Ridding of a property can be taken in two forms: 1) Selling the vacation property or 2) when the taxpayer passes away while having ownership of the property. Selling the vacation property: Once the vacation property … Continue reading Canadians Owning a Vacation Property in the US

Tax Implications of Sending U.S. Citizens to Work in Canada

What are the tax implications for sending US Citizens to Work in Canada? This is a loaded question and the cross border tax implications are complex. In this blog, I will highlight the most important ones.

Taxes for Canadians Selling Property in the US

Canadians are continuing to invest in the red hot real estate market. But what they don’t realize is the amount of taxes to be paid when the US situated property is eventually sold. In this blog, I will cover the basic taxes for Canadians selling property in the US.

Tips for Americans Performing Services in Canada

Are you an American citizens performing services in Canada? Are you confused about your Canadian tax obligations? If the answer to these questions is yes, this blog is for you!

Tax Implications for Canadians Travelling to the U.S.

Are you a Canadian snowbird? Make sure you understand the tax implications for Canadians traveling to the U.S.

How to Withdraw a IRA and 401K for Returning Canadians

Are a returning Canadian with an IRA and 401K? The tax man could be around the corner. Learn the best ways for withdrawing your IRA and 401K.

How to Avoid Paying U.S. Estate Taxes Using a Two Tier Partnership

US estate taxes can bring heavy and unwanted charges that can affect the money you have earned. Setting up a two tier partnership can save you millions.

Tax on dividends paid by a US company to a Canadian parent company (FAPI) Part 3

As the last part of the three installments on ‘Foreign Accrual Property Income’, this article will focus on the Canadian taxation of dividends from foreign affiliates and controlled foreign affiliates that earns passive income. If you own a Canadian company that receives dividends from a US or foreign subsidiary then this article is for you. … Continue reading Tax on dividends paid by a US company to a Canadian parent company (FAPI) Part 3

When is the US Personal tax filing deadline?

Are you confused about the US Tax Return Filing Deadline? You are not alone. Because of its size and complexity, the US system can be source of great confusion for those filing personal income returns. This is especially true for residents and citizens who recently moved out of the U.S., who are used to filing … Continue reading When is the US Personal tax filing deadline?

The new U.S. Foreign Account Tax Compliance Act and what it means for US residents (including US citizens) in Canada

On February, 2014, the government of Canada and the U.S. has finalized the Foreign Account Tax Compliance Act (FATCA) which will come into effect on July 1, 2014. This agreement will provide the Internal Revenue Service (IRS) with better access to information about US residents’ foreign bank activities and means trouble for US residents who … Continue reading The new U.S. Foreign Account Tax Compliance Act and what it means for US residents (including US citizens) in Canada

Do investors who receive form 1099 or form 1042 from the U.S. have to file a U.S. tax return?

No, as long as the proper withholding taxes were held on your dividends and interest income. For dividends it is 15% and for interest, it is 0%.    

As a US citizen, is there any benefits of holding a TFSA/RESP?

No. For US tax purposes, these accounts are not recognized as tax free accounts. That means that any income earned within these accounts will be taxed when you file your US tax return. Furthermore, some TFSA and all RESP accounts are considered foreign trusts for US tax purposes. This causes additional tax reporting burden on … Continue reading As a US citizen, is there any benefits of holding a TFSA/RESP?

What is the tax deadline for U.S. Personal Tax Return?

By default, the U.S. personal tax return is due by April 15 of the following year. However, if on April 15 you live and work outside the U.S., your deadline is extended to June 15. Whether your deadline is April 15 or June 15, if you require additional time to file, you can submit Form … Continue reading What is the tax deadline for U.S. Personal Tax Return?

Permanent Establishment for Short Term Contracts in the US

Imagine that you are a Canadian company sending an employee to the United States to fulfill a job order for a US customer. You feel that you know all about the Permanent Establishment rules and you are confident that as the employee is in the US on a temporary basis, his/her presence will not constitute … Continue reading Permanent Establishment for Short Term Contracts in the US

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