Sales tax in the United States

Canadians conducting business in the United States must be aware of potential sales tax responsibilities. In addition to Federal and State income taxes, businesses in the US may be required to collect and remit sales taxes to State or Municipal governments. What do I need to know about Sales Tax in the United States? Sales … Continue reading Sales tax in the United States

What happens to my IRA & 401K if I temporarily relocate to Canada?

I am a US citizen who is being relocated to work in Canada temporarily by my employer. Can I continue to contribute to my employer sponsored IRA/401(k) and will Canada allow me to claim a tax deduction for contributions I make to my US retirement plan? Yes, as long as you were a US resident … Continue reading What happens to my IRA & 401K if I temporarily relocate to Canada?

Cross Border Taxes- Tips on Doing Online Business in Canada

Cross Border Taxes- Tips on Doing Online Business in Canada By: Allan Madan | Aug 18th, 2013 | Tax, US Tax, Canadian Tax Cross Border Taxes are often overlooked by online business in the U.S., even when they sell to customers north of the border. However, you can bet that sooner or later, you will … Continue reading Cross Border Taxes- Tips on Doing Online Business in Canada

I am a Canadian resident and I received dividends and interest income from the U.S. Do I have to file a U.S. tax return?

No, first of all, dividend from the U.S. is subject to 15% withholding tax whereas interest income from the U.S. is not subject to any withholding tax as per the Canada – U.S. tax treaty. Both sources of income will not create a U.S. tax filing liability to Canadians as long as the proper amount … Continue reading I am a Canadian resident and I received dividends and interest income from the U.S. Do I have to file a U.S. tax return?

When are U.S. Personal Tax Returns due?

US personal tax returns are due on April 15 of the following taxation year. However, if you live and work outside the US on a normal basis, the deadline is automatically extended to June 15. Furthermore, any taxpayer may request additional time to file by filing this form to the IRS by their due date. … Continue reading When are U.S. Personal Tax Returns due?

I’m a US business planning on selling products to Canadian customers. Do I need an extra-provincial license?

Americans, who are not incorporated, and who are carrying on business in a Canadian Province, must register their business in that province. To register, you must obtain an extra-provincial license. Failure to register can result in a penalty of $2,000 for individuals. Selling products to Canadian customers or providing services to Canadian customers is considered … Continue reading I’m a US business planning on selling products to Canadian customers. Do I need an extra-provincial license?

I am a Canadian resident and have some funds in a U.S. 401K. What is the most tax efficient way of bringing these monies into Canada?

The most tax efficient method is to transfer these funds to your RRSP. Unfortunately, you cannot directly transfer your 401K to your RRSP. This transfer can be completed as follows: Open a Rollover Individual Retirement Account (IRA) account with an investment firm capable of cross border investment management. Rollover the 401k to an IRA. Withdraw … Continue reading I am a Canadian resident and have some funds in a U.S. 401K. What is the most tax efficient way of bringing these monies into Canada?

US Tax Accountant in Canada – US tax issues for Canadian online business

As a U.S. tax accountant in Canada, I have come across many Canadian online businesses that sell to U.S. customers who completely ignore the IRS (Internal Revenue Service). The U.S. is a global hub for international business. The result? America has one of the world’s most complicated tax codes with hidden traps everywhere. As such, … Continue reading US Tax Accountant in Canada – US tax issues for Canadian online business

Filing Back Tax Returns for U.S. Citizens Living in Canada

This short article is called ‘Filing Back Tax Returns for US Citizens Living in Canada’ and it can help simplify the process of catching up with back taxes for Americans living in Canada. Before we start, I’ll tell you why it’s so important for you to become tax compliant with the IRS.

How Canadians Should Own U.S. Real Estate

This article is called “How Canadians Should Own US Real Estate” and going through it is bound to help if you are looking for information surrounding US real estate financing for Canadians. This post will take you through four different methods, or structures, that you can use to purchase rental properties in the US, so, … Continue reading How Canadians Should Own U.S. Real Estate

Do U.S. Citizens who received a W2 slip for work done in Canada need to file a U.S. tax return?

As a Citizen of the U.S. you are required to file your worldwide income for the year. Since you earned the income in Canada, it is considered Canadian source income. As such, you will be eligible to either claim the Foreign Earned Income exclusion or Foreign Tax Credit (depending on which one lowers your tax … Continue reading Do U.S. Citizens who received a W2 slip for work done in Canada need to file a U.S. tax return?

I am filing a 1040 USA tax return, do I have to report my Canadian RRSP, TFSA account? If so, how?

You must disclose your TFSA account on your FBAR, known as Report of Foreign Bank and Financial Accounts if the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported. If your TFSA is held through a trust – you have to complete Form 3520A  and … Continue reading I am filing a 1040 USA tax return, do I have to report my Canadian RRSP, TFSA account? If so, how?

What happens when U.S. Partnership Returns are filed late?

Question: I’m a partner in a US Limited Liability Partnership, but I don’t think I will be able to file the 1065 (partnership return) by the due date. Can I file at a later date without incurring penalties? Answer: For a US LLP with a calendar year end, you can file Form 7004 to request … Continue reading What happens when U.S. Partnership Returns are filed late?

What are the tax implications for a Canadian business that earns income in the U.S.?

As a Canadian business that is deriving income from sales that occurred in the US you will be required by the IRS to report this income on one of the following tax returns, depending on your organizational structure: • 1040-NR  • Form 1120-F• Form1065 The IRS has the right to levy income tax on business income … Continue reading What are the tax implications for a Canadian business that earns income in the U.S.?

If I have a rental property in the U.S., what do I need to attach with my US tax returns to ensure the IRS accepts the figures reported?

When submitting your tax return to the IRS, you must ensure that all figures that you claim as an expense have the proper documentation submitted with them. Additionally the receipts and invoices you submit along with your tax return must prove: The expense is reasonably considered to be an ordinary expense given the nature of … Continue reading If I have a rental property in the U.S., what do I need to attach with my US tax returns to ensure the IRS accepts the figures reported?

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